Mankind Pharma Joins Race to Acquire Healthium Medtech

Reportedly, Mankind Pharma and ChrysCapital are jointly evaluating to purchase the company and form a consortium.

In a bid to expand its portfolio and venture into the lucrative surgical supplies market, Mankind Pharma has joined the bidding race to acquire Healthium Medtech, a leading player in the field.

Reportedly, Mankind Pharma and ChrysCapital are jointly evaluating to purchase the company and form a consortium.

The development comes immediately after ChrysCapital divested its entire stake in Mankind Pharma on March 26, 2024.

The Competitive Landscape

The bidding process for Healthium promises to be intense, with several heavyweight contenders vying for the prize.

Alongside Mankind Pharma, other potential bidders include KKR, Novo Nordisk, Hillhouse, Blackstone, and EQT. General Atlantic has also emerged as another prospective player eyeing the acquisition.

Interestingly, Apax Partners, the majority shareholder of Healthium Medtech, initially explored the possibility of a public listing for the asset but eventually pivoted towards a sale process, indicating shifting market dynamics.

Meanwhile, the domestic medical devices sector sees activity from players such as Sahajanand Medical Technologies, supported by Morgan Stanley PE, and Lotus Surgicals, backed by Murugappa Group and Premji Invest.

These industry giants recognize the value proposition presented by Healthium and are actively assessing the merits of an acquisition.

Apax Partners, the current owner of Healthium Medtech, anticipates a valuation of approximately $1 billion for the company.

Moreover, final bids are slated to be submitted within five weeks, pending the completion of due diligence procedures.

How Does the Acquisition Matter?

Healthium Medtech, formerly known as Sutures India, is the fourth-largest surgical suture manufacturer globally and the second-largest in India. The company specializes in surgical sutures and staples, essential supplies utilized in surgical procedures to prevent wound complications.

With a focus on four primary product areas—wound closure, arthroscopy, wound care, and infection prevention—the company's reach extends to over 40,000 surgeons across 18,000 hospitals, covering 90% of all districts in India.

Since its inception, the company has received multiple investments from PE funds including InvAscent-led India Life Sciences, CX Partners to TPG Growth. Over time, TPG raised its stake to 73% and held a majority in Sutures.

This was Apax’s second investment in the healthcare space in India, following its maiden bet in Apollo Hospitals in 2007. In 2013, Apax exited Apollo Hospitals with a three-fold return.

With a strong market presence both globally and in India, Healthium holds a significant market share of around 18%, making it an attractive acquisition target for pharmaceutical companies seeking diversification opportunities.

By integrating Healthium’s product portfolio, Mankind Pharma can enhance its offerings and create synergies. The surgical supplies market complements pharmaceuticals, providing a new revenue stream and expanding the company’s footprint.

Further, acquiring Healthium would allow Mankind Pharma to tap into international markets, leveraging existing distribution networks.

Founded in 1995 by Ramesh and Rajeev Juneja, Mankind Pharma ranks as the fourth-largest pharmaceutical company in India by domestic sales.

As the bidding process unfolds, stakeholders within the healthcare industry await further developments, anticipating significant implications for the competitive landscape of surgical supplies.

In August last year, Healthium Medtech introduced a range of TRUMAS sutures meticulously designed to address challenges faced during suturing in minimal access surgeries (MAS).

TRUMAS offers a diverse array of needle and suture combinations, catering comprehensively to the needs of surgeons.

These innovations include anti-reflective needles to alleviate eye fatigue, optimally curved needles for ease of introduction and maneuverability, square body needles for enhanced grip, and well-sized, short-length barb sutures.