The Economic Times reported that Mankind Pharma is vying with an alliance headed by the Abu Dhabi Investment Authority (ADIA) and Europe’s biggest buyout group, EQT, to acquire BSV Group (formerly known as Bharat Serums and Vaccines) from Advent International. The estimated value of the deal is Rs 14,000 crore, or $1.67 billion.
Mankind Pharma and EQT made offers earlier this week, and despite being shortlisted at first, a group comprising Warburg Pincus, ChrysCapital, and Mubadala did not make a legally binding offer.
This week is expected to see the sale’s final decision.
Details of the BSV Group sale
Vinod G. Daftary founded Bharat Serums in Mumbai in 1971. The company specialised in the development and production of injectable medications, with a particular emphasis on biotech and biological products. The company offers products in the areas of emergency medicine, critical care, women’s health, and assisted reproductive therapies.
A wide range of products are offered by BSV, such as anaesthetics, antitoxins, antifungals, monoclonal antibodies, fertility hormones, plasma derivatives, and diagnostic items. Due to the company’s significant R&D focus, about 15 patents have been awarded in the US, Europe, Australia, and Japan, among other nations. Through the acquisition of Firstline Pharmaceuticals and Genomicks in Malaysia as well as the human pharma sector of TTK Healthcare in India, BSV has recently increased its global footprint.
For Rs 3,500 crore ($500 million), Advent International bought a 74% part in BSV from the Daftary family in 2019. In 2022, Advent bought the remaining shares to assume complete control of the business. Then, managing director and CEO Sanjiv Navangul, an industry veteran who had previously worked for MSD Pharmaceuticals and Janssen, a Johnson & Johnson pharmaceutical company, was named.
BSV has a good market position, but it confronts difficulties because of its high therapeutic sector concentration—more than 80% of its income comes from women’s health and critical care.
JP Morgan and Jefferies were chosen by Advent International to assist with the sale of the biopharma company.
Mankind Pharma’s procurement binge
Mankind, the fourth-largest pharmaceutical company in India based on market share, is aggressively pursuing strategic acquisitions. Examples include the purchase of Panacea Biotec’s domestic formulation division for Rs 1,900 crore and the acquisition of Dr. Reddy’s infant soap brand Daffy and anti-asthma brand Combihale. The business also holds important in-licensing agreements, such as those with Takeda to commercialise Vonoprazan for gastroesophageal reflux disease (GERD) in India and Novartis for the heart failure treatment Neptaz.
The board of Mankind also approved financing Rs 7,500 crore in stock and raising the borrowing cap to Rs 12,500 crore. Mankind has less debt and a net cash position of Rs 3,260 crore as of March 31, 2024.
EQT wants to broaden its offering in women’s health.
Because BSV focuses so heavily on women’s health and fertility treatments, EQT, which just paid $1.1 billion to purchase a controlling 60% investment in Indira IVF, sees potential synergies with the company. Women’s health products, especially those utilised in assisted reproductive therapies, account for three-fourths of BSV’s sales. In addition, BSV is one of India’s top producers of reproductive hormones.
The pharmaceutical industry is expected to be greatly impacted by the acquisition of BSV Group, as Mankind Pharma and EQT are both well-positioned to gain from its broad range of products and robust market presence. It is anticipated that the winning bid will be decided soon, which would be a significant step forward for the biopharma sector.