Mankind Pharma looking at acquisitions, keeping funds ready for an opportunity, says management

Mankind Pharma is looking at “big and small” assets for acquisition, and is keeping its war chest ready if an opportunity arises, top management with the drugmaker said, explaining its board’s approval to raise ₹7,500 crore.

It is an enabling or  “blanket approval” to be ready for a big or small acquisition, Rajeev Juneja,  Mankind Pharma Vice Chairman and Managing Director said, replying to analyst queries on the company’s acquisition plans. The Delhi-based drugmaker was reported to be interested in buying  private equity player Advent’s stake in Mumbai’s Bharat Serum & Vaccines.

Without getting into specifics, Juneja said, they were looking at entities in the chronic and consumer segment. The company’s net cash balance stands at ₹3,260 crore, as on 31st March 2024. Reports suggesting Mankind Pharma’s interest in BSV, pegged the latter’s valuation at about $2 billion.

Meanwhile the company told the stock exchanges,  the reports were “speculative in nature and there are no events which warrant a disclosure”.  Neither BSV nor Advent have commented on the developments, though the industry is seeing activity from PE firms including Advent –  the most recent activity from it being the move to consolidate  Suven Pharmaceuticals and Cohance Lifesciences.

Mankind Pharma’s management was interacting with investors, following the announcement of their financial performance, for the year ended March 31, 2024. The company’s board had also approved the enabling provision to raise funds through equity/equity linked securities under Qualified Institutional Placement or through any permissible mode.

• Also read: Mankind Pharma to sell its OTC business through slump sale to yet-to-be-incorporated subsidiary

Financial Performance

Mankind Pharma’s revenue from operations stood at ₹2,441 crore for the last quarter ended March 31, 2024, up 19 per cent from the same period last year; and profit after tax at ₹477, up  62.3 per cent. For the year ended March 31, 2024, the company’ s revenue stood at ₹10,335 crore, up 18 per cent; and profit after tax at ₹1,942 crore, up  48.2 per cent.

Commenting on the performance, Juneja said, “This year, we have achieved a revenue milestone of ₹10,000 crore and added three more brand families worth over ₹100 crore raising the total to 23. Our strong revenue growth of 18 per cnet with EBITDA and PAT margin of ~25 per cent and 19 per cent respectively is supported by an increase in chronic share to 36 per cent  and growth in modern trade of over 50 per cent. We have further strengthened our chronic product portfolio with strategic in-house launches  coupled with in-licensing of products like Symbicort – a globally renowned inhaler from Astra Zeneca.”