RPG Life Sciences Limited has announced that its wholly owned subsidiary, RPG Active Pharma Limited (RPGAP), has entered into a Business Transfer Agreement to acquire the Active Pharmaceutical Ingredients (API) and Intermediates business of Raghava Life Sciences Private Limited. The acquisition will be completed on a going-concern basis through a slump sale and remains subject to customary closing conditions and regulatory approvals.
The transaction is part of RPGAP’s buy-and-build strategy to create a larger and integrated API-focused business. It follows the recent acquisition of Actis Generics and will expand RPGAP’s manufacturing capacity, product portfolio, regulatory capabilities and customer reach.
Raghava Life Sciences operates an API manufacturing facility near Hyderabad spread across around nine acres. The facility has approximately 300 KL of installed capacity and a dedicated research and development setup. The manufacturing site has WHO-GMP and EU-GMP approvals. The company has also invested in capacity expansion in recent years, providing RPGAP with an established manufacturing base and chemistry capabilities.
Raghava has developed a portfolio of 22 commercialised APIs and seven development-stage products. The portfolio covers diabetes, cardiovascular, central nervous system and other therapeutic areas. Several products have international regulatory approvals, including CEP, EU Written Confirmation and KDMF credentials. RPGAP expects the combination of commercial products and development-stage assets to expand its presence in API segments with growing market demand.
The company plans to generate synergies between the Raghava business, Actis Generics and the wider RPGAP network. These include backward integration, better capacity utilisation, cost savings and selected product transfers. The combined business is also expected to benefit from wider market access, stronger business development, deeper customer relationships and more focused portfolio management. RPGAP said these measures could improve cost competitiveness and operating efficiency while supporting future growth.
Ashok Nair, Managing Director, RPG Life Sciences Limited, said the acquisition adds a high-quality manufacturing asset, a broad API portfolio, regulatory approvals and established customer relationships to the RPGAP organisation. He said the transaction, following the Actis acquisition, would further strengthen RPGAP’s scale and capabilities and support its plans to build an integrated and competitive API business.
Lohith Ponguleti, Managing Director, Raghava Life Sciences Private Limited, said the company had built its business around an EU-GMP approved manufacturing facility, technical capabilities and a portfolio with significant growth potential. He said RPG was well positioned to build on this foundation and expand the business in domestic and international markets. Quillan Partners acted as legal advisors, o3 Capital as financial advisors and Deloitte as the financial due diligence partner to RPG Active Pharma Limited.
RPG Life Sciences is a research-based pharmaceutical company operating in domestic and international markets across branded formulations, global generics and synthetic APIs. RPG Active Pharma was established as a wholly owned subsidiary to build a focused API business covering product development, manufacturing and business development.
