Key Points of Mankind Emerges as Bharat-Centric Contender:
- Mankind Pharma is launching an initial public offering (IPO) amid FDA scrutiny and pricing pressures in the US market.
- The pharmaceutical company aims to increase penetration in metro and class 1 cities in India, which currently contribute 53% to sales.
- The IPO, which is a pure offer for sale, will open on April 25 and close on April 27, with a fixed price band for its IPO at Rs 1,026-1,080 per share.
- Mankind Pharma’s management is committed to Bharat and has zero debt, though the red herring prospectus indicates debt of approximately Rs 167 crore as of December 2022.
- The company plans to expand its consumer healthcare segment, including Manforce Condoms and Prega News, with a focus on premiumization.
- In FY22, the company’s revenue from operations and net profit grew 25% and 13% year-on-year, respectively, with operating margins standing at 26%.
- Operating margins contracted to 22% for the nine-month period ended December 2022, due to lower other income and higher employee costs.
- Mankind Pharma remains focused on increasing its covered market presence by growing its chronic portfolio and is open to other India-centric acquisitions.
Details of Mankind Emerges as Bharat-Centric Contender:
Mankind Pharma is seizing the opportunity to launch its initial public offering amid tight scrutiny by the US drug regulator FDA and pricing pressures in the US market. With 97% of its domestic sales coming from India, the pharmaceutical company has set its sights on increasing its penetration in metro and class 1 cities, which currently contribute 53% to sales. Mankind Pharma’s IPO, a pure offer for sale, will open on April 25 and close on April 27, with a fixed price band for its IPO at Rs 1,026-1,080 per share.
During a recent press conference, Rajiv Juneja, vice chairman and managing director at Mankind Pharma, reaffirmed the company’s commitment to Bharat, stating, “We began our journey from Meerut and our focus will continue to be Bharat.” The management shared that the company has zero debt and is cash-rich. However, the red herring prospectus indicates debt of approximately Rs 167 crore as of December 2022, compared to Rs 870 crore as of March 2022.
Mankind Pharma’s consumer healthcare segment, which includes Manforce Condoms and Prega News, will be expanded to further increase its already 30% market share. To achieve this, the company plans to focus on premiumization, such as its recent launch of Manforce Epic.
In FY22, Mankind Pharma’s revenue from operations and net profit grew 25% and 13% year-on-year, respectively, with operating margins standing at 26%. However, operating margins have contracted to 22% for the nine-month period ended December 2022, due to lower other income and higher employee costs. Despite this, the company hired new employees during the COVID-19 pandemic, as it remains focused on increasing its covered market presence by growing its chronic portfolio.
Last year, Mankind Pharma announced the acquisition of Panacea Biotec’s formulations brands for Rs 1,872 crore and remains open to other India-centric acquisitions as well. With the IPO approaching, all eyes will be on whether the company achieves full retail subscription.
About Mankind Pharma:
Headquartered in Delhi, Mankind Pharma is an Indian pharmaceutical and healthcare products company offering a wide range of products across various therapeutic areas such as antibiotics, gastrointestinal, cardiovascular, dermal, and erectile dysfunction medications.
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