RPG Life Sciences Arm to Acquire Raghava API Business for Up to Rs 135 Cr

The transaction will be executed on a going-concern basis through a slump sale and is subject to customary closing conditions and regulatory approvals, the company said in a regulatory filing. PTI reports that the acquisition marks RPG Active Pharma’s second strategic acquisition following Actis Generics.

The acquisition is the next step in RPGAP’s consolidation strategy based on a buy-and-build approach aimed at strengthening organic growth and creating an integrated, scaled API-focused organization. Following the recent acquisition of Actis Generics, the transaction is expected to broaden 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 Life Sciences operates a modern API manufacturing facility near Hyderabad, spread across approximately 9 acres, with around 300 KL of installed capacity and a dedicated R&D setup.

The facility is WHO-GMP and EU-GMP approved, with significant investment made towards capacity expansion in recent years. Its established regulatory approvals, installed capacity and chemistry capabilities are expected to provide RPGAP with an expanded manufacturing presence.

The business has developed a portfolio of high-growth APIs comprising 22 commercialized products and seven 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.

RPGAP expects to unlock value through defined synergies across the Raghava acquisition, Actis Generics and the wider RPGAP network, including backward integration, improved capacity utilization, cost synergies and selected product transfers.

The company expects stronger business development, wider market access, deeper customer coverage and disciplined portfolio execution to improve cost competitiveness, accelerate portfolio scale-up 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 APIs, 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 API business.

The real opportunity lies in unlocking the potential of the asset through stronger commercialization, improved capacity utilization and integration 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 API 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.”

Quillon Partners acted as the legal advisors, o3 Capital acted as the financial advisors and Deloitte acted as the financial due diligence partner to RPG Active Pharma Limited.

RPG Life Sciences Limited is an integrated, research-based pharmaceutical company operating in domestic and international markets across branded formulations, global generics and synthetic APIs. The company develops, manufactures and markets a range of quality and affordable medicines, with a focus on innovation, operational excellence and sustainable long-term growth.

RPG Active Pharma Limited is a wholly owned subsidiary of RPG Life Sciences Limited established to build a focused API business with capabilities across research-led product development, manufacturing and business development.

RPG Active Pharma is pursuing strategic opportunities to build a diversified API organization serving domestic and international customers.