Mankind Pharma, has announced its openness to acquisitions, following an impressive 65% increase in profit for the March quarter of 2023-24. The company is actively seeking assets in the chronic, consumer, and high-entry barrier segments that align with and enhance its existing portfolio.
To support these potential acquisitions, Mankind Pharma’s board has approved a fundraise of up to Rs 7,500 crore. This fundraise will be achieved through the issuance of equity shares, creating a financial buffer for seizing strategic opportunities as they arise. Rajeev Juneja, Vice Chairman and Managing Director of Mankind Pharma, addressed analysts on the matter, stating that the board’s approval is an enabling resolution aimed at preparing for any promising acquisitions.
There have been reports suggesting Mankind Pharma’s interest in acquiring private equity firm Advent International’s stake in Mumbai-based biopharma company Bharat Serums and Vaccines (BSV). BSV is recognized for its production of injectable biological and pharmaceutical products, particularly in women’s healthcare, assisted reproductive treatment, critical care, and emergency medicine sectors. Additionally, BSV operates subsidiaries in the USA, Germany, Malaysia, and the Philippines, with a significant manufacturing presence in Germany for therapeutic proteins derived from natural sources.
Mankind Pharma has been steadily increasing its focus on the women’s health segment, having recently launched a medication for treating endometriosis in women. The company is also investing Rs 300 crore in a new facility in Rajasthan dedicated to manufacturing fertility hormones.
Despite media speculation valuing Advent’s stake in BSV at around $2 billion, Mankind Pharma has not confirmed any specific acquisition targets. In a regulatory filing with the BSE, the company described the reports as “speculative in nature” and reiterated its commitment to timely disclosure of material events.
“As part of the growth initiatives, the company continues to explore opportunities for inorganic growth from time to time. The company has always followed best practices for disclosure of material events at the appropriate time and will continue to do so,” Mankind Pharma stated.
Mankind Pharma’s robust quarterly performance and proactive acquisition strategy underscore its commitment to expanding its market presence and enhancing its product offerings in critical healthcare segments.