Several Indian biopharma companies are eyeing a potential buy of Bharat Serums and Vaccines in a deal that could be worth $1 billion, according to The Economic Times, which cites two sources familiar with the talks. Price remains a key stumbling block.
Among potential buyers are Cipla, Zydus Cadila and Dr. Reddy’s Laboratories, plus private equity fund Baring Asia, according to the publication.
Two private equity funds—Kotak Private Equity and Orbimed Asia—hold 23% of the biologics company, while the Daftary family owns the rest. The owners have hired Jefferies to manage the sale, but the discussions are in early stages. Price is considered a hurdle to the deal, according to industry experts cited by TET.
Bharat Serums and Vaccines has more than 900 employees worldwide and operates in more than 45 countries. Founded in 1971, the company sells meds in gynecology, assistive reproductive technology, critical care, neurology, nephrology and more. The drugmaker owns two subsidiaries: BSV BioSciences, a California R&D outfit working on early-stage development of recombinant molecules, and a German branch that manufactures and markets biological APIs.
Last year Mylan entered talks for a potential purchase of Bharat Serums, but the deal didn’t materialize.