RPG Active Pharma acquires API business of Raghava Life Sciences to strengthen its integrated API play

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. 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 organisation. 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 organisation is intended to strengthen RPGAP’s participation in the growing API market through greater scale, synergies, deeper integration and focused commercial execution. 

A high quality asset with significant value-unlock potential 

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 APIs, comprising 22 commercialised 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 commercialised and pipeline APls gives RPGAP access to therapy areas benefiting from strong market tailwinds. 

RPGAP expects to unlock value through defined synergies across this acquisition, Actis and the wider RPGAP network, including backward integration, improved capacity utilisation, cost synergies and selected product transfers. Stronger business development, wider market access, deeper customer coverage and disciplined portfolio execution are poised 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 said, “This acquisWon marks an important addition to the RPG Active Pharma Limited consolidated organisation. It brings together a high-quality manufacturing asset, a broad portfolio of commercialised 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 API business. 

The real opportunity lies in unlocking the potential of the asset through stronger commercialisation, improved capacity utilisation and integration across the organisation. 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.” 

Commenting on the acquisition, Lohith Ponguleti, Managing Director, Raghava Life Sciences said, “We are pleased to see Raghava Life Sciences 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.” 

Quillan 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.