BSV acquisition to help Mankind Pharma’s future growth, says Juneja, VP, ET HealthWorld

New Delhi: The acquisition of Bharat Serums and Vaccines would add a lot of value to Mankind Pharma’s future growth, according to vice-chairman and managing director Rajeev Juneja. On July 25, Mankind announced that it would fully acquire Bharat Serums and Vaccines (BSV) from Advent International for an enterprise value of around Rs 13,630 crore.

“One thing should be clear: the purpose of this acquisition is not to increase revenues, but to add significant value, increase future growth, lower the barrier to entry and create a specialist business for Mankind,” Juneja told the analyst.

No matter how much the company pays for BSV, it is very significant because the company has “a lot of value” and is doing well, he added.

The acquisition is in line with the company’s strategy to buy businesses with high barriers to entry, he said.

Juneja said the acquisition will strengthen Mankind’s position with a complementary medicines portfolio and broad reach to reach high-growth, under-penetrated markets, especially in the area of ​​infertility treatment.

“We believe that the women’s health and fertility segment has huge potential and is seeing growth across the globe, driven by structural factors such as changing lifestyles, delayed parenthood and rising rates of chronic diseases,” he said.

BSV is strategically positioned to capitalize on these trends with a broad portfolio of products that cover the entire spectrum of women’s health, from fertility through pregnancy to the postpartum period,” he added.

Mankind Pharma intends to complete the buyout through a combination of internal reserves, equity and debt.

The company expects around Rs 4,000 crore to come from internal settlements and the remaining amount will be met from debt repayment.

BSV has developed recombinant and niche biologics in-house. The company prides itself on having a strong portfolio of branded products in the women’s health, fertility and critical care segments.

Few of its flagship brands enjoy a strong leadership position in their therapeutic areas.

Mankind has a presence in many therapeutic areas, including the treatment of infections, cardiovascular diseases, gastrointestinal diseases and diabetes.