RPG Life Sciences acquires API and Intermediates biz of Raghava Life Sciences

RPG Life Sciences announced that its wholly owned subsidiary, RPG Active Pharma (RPGAP), has entered into a Business Transfer Agreement to acquire the Active Pharmaceutical Ingredients (API) and Intermediates business undertaking of Raghava Life Sciences on a going-concern basis through a slump sale for a consideration up to Rs 135 crore.

The transaction is subject to customary closing conditions and regulatory approvals.

The acquisition is the next step in RPGAP's consolidation play based on a well-planned buy-and-build strategy to bolster organic growth and create an integrated, scaled API focused organization.

Following the recent acquisition of Actis Generics, this transaction broadens RPGAP's manufacturing base, product portfolio, regulatory capabilities and customer access across geographies. The consolidated organization is intended to strengthen RPGAP's participation in the growing API market through greater scale, synergies, deeper integration and focused commercial execution.

Raghava operates a modem API manufacturing facility near Hyderabad, spread across approximately 9 acres, with around 300 KL of installed capacity and a dedicated R&D set-up. The facility is WHO-GMP and EU-GMP approved with significant investment towards capacity expansion in recent years. Its established regulatory approvals, meaningful installed capacity and chemistry capabilities provide RPGAP with a high-quality manufacturing presence.

The business has developed a portfolio of high-growth APls, comprising 22 commercialized products and 7 development-stage assets across diabetes, cardiovascular, CNS and other therapeutic segments. The portfolio includes commercially attractive molecules and is supported by multiple international regulatory credentials including CEP, EU Written Confirmation and KDMF approvals. This broad basket of commercialized and pipeline APls gives RPGAP access to therapy areas benefiting from strong market tailwinds.

The acquisition will be funded in line with the recent equity raise announced by RPGAP.