RPG Life Sciences Ltd’s wholly owned subsidiary RPG Active Pharma Ltd (RPGAP) has entered into a Business Transfer Agreement to acquire the Active Pharmaceutical Ingredients (API) and intermediates business of Raghava Life Sciences Pvt Ltd for ₹135 crore.
The business will be acquired on a going-concern basis through a slump sale. The transaction is part of RPGAP’s buy-and-build strategy to strengthen organic growth and create an integrated, scaled API-focused organisation.
Acquisition expands manufacturing base
The acquisition follows RPGAP’s recent acquisition of Actis Generics and is expected to broaden its manufacturing base, product portfolio, regulatory capabilities and customer access across geographies.
The consolidated business will seek to strengthen RPGAP’s presence in the API market through greater scale, operational synergies, deeper integration and focused commercial execution.
Hyderabad facility adds capacity
Raghava Life Sciences operates an API manufacturing facility near Hyderabad spread across nine acres, with around 300 KL of installed capacity and a dedicated research and development setup.
The facility is WHO-GMP and EU-GMP approved and has received significant investment towards capacity expansion in recent years.
Portfolio spans key therapies
The business has a portfolio of 22 commercialised APIs and seven development-stage assets across diabetes, cardiovascular, central nervous system and other therapeutic segments.
The portfolio includes commercially attractive molecules and is supported by international regulatory credentials, including CEP, EU Written Confirmation and KDMF approvals.
RPGAP eyes operational synergies
RPGAP expects to unlock synergies across the Raghava acquisition, Actis Generics and its wider network through backward integration, improved capacity utilisation, cost synergies and selected product transfers.
The company also expects stronger business development, wider market access and deeper customer coverage to improve cost competitiveness and accelerate portfolio scale-up.
Leaders comment
“This acquisition marks an important addition to the RPG Active Pharma consolidated organisation. It brings together a high-quality manufacturing asset, a broad portfolio of commercialised APIs, established regulatory credentials and strong customer relationships,” RPG Life Sciences, Managing Director, Ashok Nair, said.
“Following Actis, it further strengthens the scale and capabilities of RPGAP and advances our strategy of building an integrated and competitive scaled API business. The real opportunity lies in unlocking the potential of the asset through stronger commercialisation, improved capacity utilisation and integration across the organisation,” he said.
Deal to be funded from equity raise
The acquisition will be funded in line with the recent equity raise announced by RPGAP.
“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. 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,” Raghava Life Sciences, Managing Director, Lohith Ponguleti, said.
Quillan Partners acted as legal advisors, o3 Capital as financial advisors and Deloitte as the financial due diligence partner to RPG Active Pharma.