Mankind Pharma Vice Chairman Juneja says BSV acquisition to aid future growth of Company
Mumbai: Rajeev Juneja, Vice Chairman and Managing Director of Mankind Pharma, has underscored the strategic significance of the company's recent acquisition of Bharat Serums and Vaccines (BSV). Juneja stated that the acquisition is poised to significantly enhance the company's value and support its future growth trajectory.
Mankind had announced that it will fully acquire Bharat Serums and Vaccines (BSV) from Advent International for an enterprise value of around Rs 13,630 crore on July 25.
Read also: Mankind Pharma to acquire 100 percent stake in Bharat Serums and Vaccines for 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 specialty business in Mankind," Juneja said in an analyst call.
Whatever the company is paying for BSV, it is very relevant as the company has "so much of value" with well established business, he said.
The acquisition is in line with the company's strategy of buying high entry barrier businesses, he stated.
The buyout will solidify Mankind's position with complementary drug portfolio and extensive reach to target rapidly growing highly under-penetrated markets, especially in fertility, Juneja said.
"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 stated.
BSV is strategically positioned to leverage these trends with their extensive range of products that cover the entire woman health spectrum, from fertility to pregnancy and post pregnancy, he added.
Mankind Pharma is going to utilise a combination of internal accruals, equity and debt for the buyout.
The company expects about Rs 4,000 crore to come from internal accruals and the balance amount through the debt route.
BSV has developed recombinant and niche biologic products in-house. It boasts of having a robust branded product portfolio across women's health, fertility and critical care segments.
Few of its marquee brands enjoy a strong leadership position in their respective therapy areas.
Mankind has presence across various therapeutic areas including anti-infectives, cardiovascular, gastrointestinal and antidiabetic segments.
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