It has also entered into collaboration with Biophore for the development of niche products for the US market
RPG Life Sciences has signed an agreement to acquire seven prescription brands from Sun Pharmaceutical Industries together with its subsidiaries.
The move is in line with the company’s strategy to focus on formulations business. The acquired brands are primarily in respiratory and urology segments. In addition to this, three products will compliment the company’s existing range.
Talking about the development, CT Renganathan, Managing Director, RPG Life Sciences said, “Historically, the company has invested in in-licensing products. This is the first time that we have made a brand acquisition. We believe these brands have a huge potential to grow and are a perfect fit to our current portfolio and in line with our long-term growth strategy.”
This deal is subject to receipt of Competition Commission of India’s (CCI) approval.
Meanwhile, the company also announced the unaudited financial results for the quarter ended June 30, 2016, posting a 28 per cent surge in net sales that stood at Rs 85.23 crores as against Rs 66.5 crores for the corresponding quarter last year. PAT grew Rs 9.87 crores as against Rs 2.14 crores and EBITDA for the quarter surged to Rs 12.95 crores as against Rs 5.63 crores in the corresponding quarter of the previous year, a growth of 130 per cent. Margins grew by 743 bps to stand at 15.9 per cent.
“This quarter’s performance has been driven by robust growth in international business. Due to regulatory reasons, our Canadian customer advanced their requirements to the first half of the financial year by giving orders during the current quarter resulting in higher sales. Also, our ROW sales had higher pickup from our customers in Myanmar and Mauritius. Overall, we have started the year on a good note and we hope to maintain consistent growth on quarter on quarter basis,” commented Renganathan.
Furthermore, the company also announced its collaboration with US-based Biophore, to develop, file and commercialise products specifically targeting the US market. As a part of this strategic tie-up, Biophore will develop, manufacture and file finished dosage formulations (DMF) for the API whereas RPGLS shall develop, manufacture, file and commercialise these products from its manufacturing facility for regulated markets.
RPG Life Sciences will be entering into a collaboration with Biophore for the development of niche products for the US market. To begin with, the company will start with four projects which shall be achieved in two phases comprising two products each. The company will own the ANDA for these products in the US market while exploring the potential for these products in the other regulated markets with Biophore.
“This alliance is in accordance with our target to enter the US market in the next 24 to 36 months from now. We desire to have our own set up in the region and shall adopt strategic partnership models for this market for product development and marketing focused for US market. We will explore and go for First to File, First Few to File, NCE-1 product opportunities for US market along with niche formulations with limited competition,” pointed out Renganathan.