RPG Life Sciences is acquiring the active pharmaceutical ingredients (API) and intermediates business of Raghava Life Sciences for ₹135 crore.

Only business assets are being acquired and not shares of any entity, RPG Life Sciences said, announcing recent signing of a business transfer agreement (BTA) for the acquisition on a going-concern basis through a slump sale through wholly owned subsidiary RPG Active Pharma.

The acquisition is the next step in RPG Active Pharma’s consolidation play based on a well-planned buy-and-build strategy to bolster organic growth and create an integrated, scaled API focused organization. Following the recent acquisition of Actis Generics, the latest transaction broadens its manufacturing base, product portfolio, regulatory capabilities and customer access across geographies.

Raghava operates a modern API manufacturing facility near Hyderabad, spread across about nine acres, with around 300 KL of installed capacity and a dedicated R&D set-up. The facility is WHO-GMP and EU-GMP approved. The business has developed a portfolio of high-growth APls, comprising 22 commercialised products and seven development-stage assets across diabetes, cardiovascular, CNS and other therapeutic segments.

“This acquisition marks an important addition... brings together a high-quality manufacturing asset, a broad portfolio of commercialised APIs, established regulatory credentials and strong customer relationships,” RPG Life Sciences MD Ashok Nair said.

Raghava Life Sciences MD Lohith Ponguleti said, “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. RPG is well positioned to build on this foundation, accelerate expansion and unlock the next stage of value creation.”