RPG Life Sciences Establishes Focused API Unit, Securing Investment and Acquiring Actis Generics

RPG Life Sciences Establishes Focused API Unit, Securing Investment and Acquiring Actis Generics​

RPG Life Sciences Limited has executed a strategic move to accelerate its next phase of growth by establishing a focused Active Pharmaceutical Ingredients (API) business. The company transferred its existing API business to its wholly owned subsidiary, RPG Active Pharma Limited (RPGAP). This initiative is coupled with a major investment partnership and the acquisition of an established API manufacturer.

RPG Life Sciences executed a Business Transfer Agreement transferring its API business to RPG Active Pharma Limited on a slump sale basis. This move is part of the company’s strategy to create a focused API entity, providing dedicated capital, sharper management attention, and greater strategic flexibility, allowing the parent company to continue developing its formulations business.

Strategic Investment and Expansion Plan​

The transfer coincides with an investment agreement forged with Inv Ascent, a healthcare-focused private equity investor, for RPG Active Pharma. Funds managed by lnvAscent will provide an initial investment of up to INR 243 crore into RPG Active Pharma. The overall investment commitment from the Company and lnvAscent in RPGAP is envisaged to reach up to Rs. 700 crore through tranches.

The capital injection is intended to support the strengthening of manufacturing infrastructure, expansion of the product portfolio, enhancement of process development capabilities, and the pursuit of both organic and inorganic growth opportunities for RPG Active Pharma.

In addition to the investment, RPG Active Pharma executed a Share Purchase Agreement securing 100% equity share capital of Actis Generics Private Limited, an API manufacturing company located in Visakhapatnam. This acquisition is set to expand RPG Active Pharma’s operating platform and broaden its manufacturing base to support strategic growth objectives.

The establishment of RPG Active Pharma as a dedicated API manufacturer is intended to meet the demands of customers across domestic and international markets while emphasizing quality and reliability.

Management Perspectives on the Initiative​

Ashok Nair, Managing Director of RPG Life Sciences, commented on the development, stating that building a meaningful and scalable presence in APIs has been a strategic priority. He noted that partnering with lnvAscent complements the company's vision for the business. "The proposed acquisition of Actis Generics further strengthens this business and supports our ambition to build a high-quality AP/ business with expanded manufacturing capabilities," Nair stated.

Dr. Jeevak Gupta, Managing Director at lnvAscent, expressed excitement regarding the partnership, noting that RPG Life Sciences has established pharmaceutical capabilities and clear ambitions to scale its API business. Dr. Gupta added that RPG AP is well positioned to benefit from the long-term growth opportunity in high-quality API manufacturing.

Business Focus​

The transactions are intended to establish RPG Active Pharma as a focused API manufacturer, augmenting its manufacturing capabilities and expanding its portfolio while serving both domestic and international clients.

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About RPG Life Sciences Limited:
RPG Life Sciences, part of the RPG Group, is an integrated, research-based pharmaceutical company operating in both domestic and international markets across branded formulations, global generics, and synthetic APIs. The Company focuses on developing, manufacturing, and marketing quality medicines with a focus on innovation and sustainable growth.

About RPG Active Pharma Limited:
RPG Active Pharma Limited is the subsidiary established by RPG Life Sciences to create and scale a focused API business. It will concentrate on strengthening manufacturing, expanding its product portfolio, and pursuing strategic opportunities to build a diversified API platform for domestic and international customers.

RPGLIFE Stock Price Movement​

On Wednesday, shares of RPG Life Sciences Limited slipped by 1.62% to settle at ₹2850.2, marking a decrease of ₹46.70 from the previous close. The stock saw activity during the session with a total traded volume of 53,983 shares.