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In a significant development in the Indian pharmaceutical industry, Mankind Pharma has announced the completion of its acquisition of Bharat Serums and Vaccines Limited (BSV) for a whopping Rs 13,768 crore.

This strategic move is expected to bolster Mankind Pharma's position as a market leader in the Indian women's health and fertility drug market, while also providing access to other high entry barrier products in the critical care segment.

BSV, a biopharmaceutical leader in women's healthcare, assisted reproductive treatment, critical care, and emergency medicine, has a strong presence in over 70 countries with R&D facilities in India, Ukraine, Germany, the Philippines, and Malaysia.

Its manufacturing facilities are located in India and Germany. BSV's niche portfolio offering in women's health, including products like Thymogam, Octaplex, ASVS, and others, have already established market leadership.

The acquisition is expected to be a game-changer for Mankind Pharma, which has 30 facilities in India and manufactures a wide range of health products. The company has a track record of product innovation through its six dedicated R&D facilities backed by more than 660 scientists.

A Strategic Move for Mankind Pharma

Rajeev Juneja, Vice-chairman and Managing Director, Mankind Pharma, expressed his enthusiasm about the acquisition, stating, "Their established specialty R&D tech platforms with complex portfolio perfectly aligns with our vision to expand into high entry barrier portfolio. Today, we warmly welcome BSV's 2,500+ members to our Mankind family adding a new chapter to our exciting journey and setting the stage for accelerated growth."

The acquisition, funded through a combination of internal accruals and external debt, has been executed by Mankind Pharma and its wholly-owned subsidiary (WOS), which acquired a 100 percent stake in BSV.

The company's shares ended an 8-session losing streak following the announcement of the acquisition completion. The stock gained as much as 0.5% to ₹2,543.70 on the BSE, while the market capitalisation rose to ₹1 lakh crore.

Sanjiv Navangul, MD and CEO, BSV, echoed Juneja's sentiments, stating, "Together, we will now be able to ensure wider access of our specialised and indigenously developed complex treatments to millions of patients in India and across the globe."

The Impact of the Acquisition

The acquisition aligns with Mankind's goal of maintaining a net debt to EBITDA ratio below 2 times by FY26, reinforcing its commitment to sustainable growth and financial discipline. The company believes that the acquisition has the potential to optimise and build on the synergies in commercial operations, distribution, manufacturing, and supply chain.

BSV reported revenues of ₹1,723 crore in FY24, delivering 20% y-o-y growth with adjusted EBITDA Margins of 28%. The company's marquee brands enjoy a strong leadership position in their respective therapy areas.

The acquisition is expected to be EBITDA margin-accretive, which is in line with Mankind's financial discipline and commitment to sustainable growth.