Mankind Pharma wants deals, sees FY16 domestic sales topping USD 700 million

Mankind Pharmaceuticals, one of the country's top-ten drugmakers by sales, is willing to spend up to Rs 500 crore to buy local rivals and is keen on licensing deals with foreign firms, a top official at the firm said.

The company is also exploring buying established brands to expand its domestic footprint, Managing Director Sheetal Arora told Reuters in a phone interview.

Recently listed by the healthcare consultancy IMS among one of the fastest-growing companies in the country by sales, Mankind is expecting its domestic revenue for the fiscal year 2016 to grow to Rs 4,400 crore ($705.52 million) from about Rs 2,500 crore the year earlier, Arora said.

In scouting for local companies with niche capabilities, New Delhi-based Mankind would be competing with nearly all the top homegrown pharma players, who are keen to expand domestically. Dr Reddy's Laboratories, country's second-largest drugmaker by sales, is also selectively exploring deals to expand in the domestic market.

Mankind's growth plans come as, according to Arora, the drugmaker is seeing interest from new private equity investors, with private equity fund ChrysCapital Investment Advisors India looking to sell its stake.

ChrysCapital held an 11.1 per cent stake in family-owned Mankind, sources with direct knowledge of the matter said, but Arora declined to specify.

"Lots of foreign companies are looking to launch products here, but India is a very complex market, so they need to tie up with companies that have strong marketing strength," Arora said. That's where Mankind believes it is well-positioned.

"We want to tie-up with a multinational who wants to enter the Indian market ... maybe in lifestyle diseases, as we have very strong marketing muscle in India in diabetes," Arora said.

Mankind sells more than a thousand products in the country across 14 therapeutic areas ranging from pain and allergy to cardiology, neurology, diabetology, and women's health. Over the past year the company has also begun exporting to about a dozen countries, but the international business only makes up 1 per cent of sales so far.

Mankind is one of the biggest players in the sexual health market in the country, although the segment contributes only about 8 to 10 per cent to its total sales. Its popular Manforce condom brand has annual sales of Rs 300 crore, Arora said.

ChrysCapital Managing Director Sanjiv Kaul did not immediately respond to a request for comment.

(Reuters)