Mankind Pharma Ltd, India’s largest unlisted pharmaceutical firm, plans to launch an initial public offering (IPO) in two years, as its private equity (PE) partners want to offload their stakes, the company’s founder and chairman R.C. Juneja said.
“They (PE funds) have a time bar, and they want their returns…We have a very good relationship with them, but they have a time frame to exit," Juneja said in an interview to Mint. The exact timing of the IPO will depend on market conditions, including the state of the economy, he added.
Capital International had in 2015 bought an 11% stake in Mankind from ChrysCapital for $200 million. In April 2018, ChrysCapital bought a 10% stake again for about $350 million.
Juneja said Capital International is one of the investors looking to sell their stakes in the company. However, he did not disclose details on the valuations they were looking at for the planned share sale. When ChrysCapital picked up the 10% stake last year, Mankind was valued at about ₹23,000 crore, Juneja said. “Capital wants to leave... There’s no pact for them that it has to happen when the IPO route comes… But in two years, they will go."
He said, however, that the promoters are not keen on divesting a part of their 79% stake through the IPO. Mankind’s revenue is expected to grow from ₹4,900 crore in 2018-19 to ₹5,600 crore in 2019-20 and to ₹6,500 crore in the year ending March 2021, Juneja said. By 2021-22, he expects annual revenue to cross $1 billion (about ₹7,128 crore).
According to market researcher AIOCD-AWACS, Mankind’s India sales were at ₹5,177 crore during 12 months ended 31 October, up 13% year-on-year.
Mankind plans to launch more products in the cardiovascular and anti-diabetes segments in India by April. It is also researching on a biosimilar product to treat rheumatoid arthritis and a drug for fatty liver disease, he said.
Mankind also wants to focus on vaccines.“We can go for acquisition of (vaccine companies), but it should not be very expensive," he said, adding that organic growth in vaccines may be difficult because of the long gestation period.
The drugmaker had recently bid for Bharat Serums and Vaccines, but lost out to Advent International’s ₹3,500 crore bid.
On Thursday, Mankind announced the launch of dydrogesterone in India. The drug is used to treat female infertility and pain during menstruation. Subsequently, it will look at exports. The drug is a generic version of Abbott’s Duphaston tablets.
Mankind said it is the first Indian company, and second, globally, to develop the drug, and expects to earn about ₹50 crore in 2020-21 from the product.
The company wants to expand its operations beyond India, its largest market, especially to the US, with a target of ₹500-600 crore in annual sales in two years from around ₹100 crore last year, Juneja added.
Mankind is the fifth-largest pharmaceutical firm in India, and the largest unlisted player, according to AIOCD-AWACS’ data for October.
Besides branded generic drugs, the company’s prominent brands include Prega-News pregnancy testing kits, Manforce condoms, Gas-O-Fast ayurvedic antacids and acne-treating medicine AcneStar.
The company has been outpacing the industry in terms of pharmaceutical sales, aided by sales growth of medicines for chronic diseases, as per the AIOCD-AWACS data.