Mankind Pharma to buy Bharat Serums and Vaccines in a Rs13,630-cr deal

Mankind Pharma is acquiring Bharat Serums and Vaccines (BVS) from private equity firm Advent International in a deal valued at Rs13,630 crore.

Mankind has signed a definitive agreement with Advent International to acquire 100 per cent stake in BSV, which, the company said, will strengthen its biopharma business.

This is the biggest acquisition by Mankind Pharma, which is many times larger than its Rs1,872 crore acquisition of Panacea Biotec Pharma's formulations brands in February 2022.

Mankind Pharma said the acquisition ensures a safer product that has no entry barrier and is used in chronic therapeutic conditions. Also, the acquisition will not dilute the profitability of the company.

BSV has a portfolio of recombinant and niche biologic products developed in-house, with some brands enjoying leadership position in the respective areas of therapy. It will also make Mankind a leader in women’s healthcare products.

Mankind Pharma, one of the largest pharmaceutical companies in India, is into the manufacture of both drug formulations and healthcare products. The acquisition of BSV will make the company India’s largest biopharmaceutical company. 

Mankind Pharma, which is listed on the Bombay Stock Exchange (BSE) has a current market capitalisation of around  Rs86,000 crore. The company had sold shares at Rs1,80 each in an initial public offer to raise Rs4,326.36 crore.

While Manking said it has the necessary funds at its disposal, a Bloomberg report said the company has tapped  Barclays Plc and Deutsche Bank AG for arranging funds for the  proposed Rs13,630-crore acquisition. The report also said while the lenders will help in arranging funds, there is no finality as to when and from where the funds will come.