Mankind Pharma in Race to Buy Bharat Serum & Vaccines Group for INR 13,000 Cr

In the latest update, Dr Reddy’s Laboratories may also join the race, having sought extra time to submit a bid for the Advent International portfolio company.

Mankind Pharma along with Private Equity firms TPG, Blackstone, and EQT, along with a consortium of Warburg Pincus and ChrysCapital have joined the race to acquire BSV Group, formerly Bharat Serum & Vaccines.

The acquisition value is said to be around INR 12,000-13,000 Cr ($1.4-1.5 billion), as reported by the ET.

Reportedly, these five companies have been shortlisted after non-binding bids were submitted last week.

In the latest update, Dr Reddy’s Laboratories may also join the race, having sought extra time to submit a bid for the Advent International portfolio company.

Other Players Eyeing the Deal

Following Mankind Pharma’s interest, global private equity firms Blackstone, KKR, and Carlyle also entered into discussions to acquire BSV.

Reportedly, Dr Reddy’s Laboratories non-binding bid is expected to be filed this week. Due diligence will continue over the next four to six weeks before the final offers are submitted in July.

Earlier this year, Advent appointed JP Morgan and Jefferies to sell the Mumbai-based biopharma firm five years after buying a controlling stake in it for INR 3,500 Cr.

Insight into the Advent’s Deal

Advent is reportedly planning to divest its entire stake in BSV and it is seeking a valuation of $2 billion for its total stake, with plans to exit in February of this year.

Advent, which currently holds a 100% stake, initially purchased a 74% stake in Bharat Serum & Vaccines in November 2019 from Orbimed Asia and Kotak PE for $500 million.

The remaining 26% stake was acquired in 2020 for an undisclosed amount, providing an exit for its previous promoters.

Established in 1971 by the late Dr Vinod G Daftary, Bharat Serum and Vaccines, researches, develops, manufactures, and markets injectable biological, pharmaceutical, and biotechnology products.

The firm specializes in women’s healthcare, assisted reproductive treatment, critical care, and emergency medicines. The acquisition is anticipated to strengthen Mankind Pharma’s standing in the pharmaceutical industry.

Recently, the vaccine developer witnessed revenue growth of 15% to INR 1,435.4 Cr in FY23. The company had reported revenue of INR 1,235.3 Cr in the previous fiscal year, as per a September 2023 report from rating agency ICRA.