RPG Life Sciences is stepping up its push to build a scaled, integrated active pharmaceutical ingredients (API) business.
This, with its wholly owned subsidiary, RPG Active Pharma Limited (RPGAP), agreeing to acquire the API and intermediates business undertaking of Raghava Life Sciences Private Limited for consideration of up to Rs 135 crore.
The acquisition, being executed through a slump sale on a going-concern basis, is subject to customary closing conditions, regulatory approvals and customary adjustments.
The transaction marks RPGAP’s second strategic acquisition following its recent acquisition of Actis Generics, strengthening its manufacturing footprint, product portfolio, regulatory capabilities and customer reach as it seeks to capture a larger share of the growing API market.
Raghava operates an approximately nine-acre API manufacturing facility near Hyderabad with around 300 KL of installed capacity and a dedicated R&D setup. The plant is WHO-GMP and EU-GMP approved and has received significant investment toward capacity expansion in recent years.
The acquisition also brings RPGAP a portfolio of 22 commercialized APIs and seven development-stage assets spanning diabetes, cardiovascular, CNS and other therapeutic segments.
The portfolio is backed by multiple international regulatory credentials, including CEP, EU Written Confirmation and KDMF approvals, giving RPGAP access to products and therapeutic segments with strong market potential.
RPGAP plans to unlock value from the acquisition through synergies across Raghava, Actis Generics and its broader network. These include backward integration, higher capacity utilization, cost synergies and selected product transfers.
The company expects stronger business development, wider market access and deeper customer coverage to improve cost competitiveness, accelerate portfolio expansion and enhance operating leverage over time.
The acquisition will be funded in line with the recent equity raise announced by RPGAP.
Commenting on the acquisition, Ashok Nair, Managing Director, RPG Life Sciences Limited., said: "This acquisition marks an important addition to the RPG Active Pharma Limited consolidated organization. It brings together a high-quality manufacturing asset, a broad portfolio of commercialized AP/s, established regulatory credentials and strong customer relationships.
"Following Actis, it further strengthens the scale and capabilities of RPGAP and advances our strategy of building an integrated and competitive scaled AP! business.
"The real opportunity lies in unlocking the potential of the asset through stronger commercialization, improved capacity utilization and integrat;on across the organization. By combining these manufacturing and product capabilities with Actis' intermediate strengths and RPGAP's governance, talent and market access, we intend to build a larger presence and capture a greater share of the growing AP/ market."
Lohith Ponguleti, Managing Director, Raghava Life Sciences Private Limited said: "We are pleased to see Raghava Life Sciences Private Limited embark on its next phase of growth as part of RPG. Over the years, we have built a differentiated business anchored by an EU-GMP approved manufacturing facility, strong technical capabilities and a portfolio with significant growth potential.
"We believe RPG is well positioned to build on this foundation, accelerate expansion across domestic and international markets, and unlock the next stage of value creation for the business."
