Vice Chairman and Managing Director Rajeev Juneja believes that the acquisition of Bharat Serums and Vaccines would significantly increase the value and support Mankind Pharma’s future growth.
Mankind had declared on July 25 that it will buy Bharat Serums and Vaccines (BSV) in full from Advent International for an estimated Rs 13,630 crore.
“One thing should be very clear, this acquisition is not to really add some kind of revenue, but to add a lot of value, future growth, entry barrier, super speciality business in Mankind,” Juneja stated during a conference call with analysts.
He stated that the company has “so much of value” with a well-established business, therefore whatever the corporation is paying for BSV is quite relevant.
According to him, the acquisition fits with the company’s strategy of purchasing industries with significant entry barriers.
According to Juneja, the acquisition will strengthen Mankind’s position in the fast expanding and extremely underserved areas of fertility in particular by leveraging its complementary medicine portfolio and broad reach.
“We believe women’s health and fertility segment hold immense potential, along with strong growth visibility globally, fuelled by structural tailwinds like lifestyle change, delayed parenthood and rising chronic conditions,” he said.
He continued, “With their wide range of products that cover the entire woman health spectrum, from fertility to pregnancy and post pregnancy, BSV is strategically positioned to leverage these trends.”
For the takeover, Mankind Pharma will use a mix of debt, equity, and internal accruals.
The company estimates that internal accruals will provide approximately Rs 4,000 crore, with the remaining amount coming from debt.
Recombinant and speciality biologic products have been internally created by BSV. It claims to have a strong portfolio of branded products in the critical care, fertility, and women’s health sectors.
Only a small number of its well-known brands hold a dominant position in the treatment markets.
Humanity is present in several therapeutic domains, including as the gastrointestinal, cardiovascular, anti-infective, and antidiabetic segments.