RPG Life Sciences plans new acquisition using capital worth 500 crore rupees
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Business Standard
business-standard.com

RPG Life Sciences plans new acquisition using capital worth 500 crore rupees

The integrated pharmaceutical company RPG Life Sciences, based in Mumbai, intends to allocate approximately 500 crore rupees from its reserved capital to purchase another asset within the next twelve months.

RPG Life Sciences Director Ashok Nair stated to Business Standard during a virtual meeting that the company has already utilized about 200 crore rupees from its total reserve of 700 crore rupees and is looking for a new asset, preferably one approved by the US Food and Drug Administration (USFDA) or one that offers synergy with the company's current operations.

This move comes amid the company's plans to grow its active pharmaceutical ingredient (API) manufacturing business by 25 percent annually over five years through organic growth and acquisitions.

Recently, the company acquired Actis Therapeutics and Raghav Lifesciences with the support of private investment firm InvAscent; these assets are expected to start generating revenue by the third quarter of the fiscal year 27.

Nair noted that Actis and Raghava Lifesciences should generate revenue of 70 to 80 crore rupees over the next six months. These acquisitions have increased the company's production capacity fivefold and doubled its client base.

Previously, RPG Life Sciences transferred its API business to RPG Active Pharma, a wholly-owned subsidiary of RPG Life Sciences, and brought in InvAscent as a strategic partner.

According to Nair, this was part of a strategy to create a focused API business with dedicated capital, closer management, and greater strategic flexibility, while the company continues to develop its drug formulation business.

He added that RPG's existing manufacturing facilities can generate around 450 crore rupees in revenue without significant additional investment, with growth expected through increased capacity utilization, attracting new clients, and entering markets such as Europe and South America.

The company will focus on integrating and scaling these assets while continuing to explore opportunities for inorganic growth.

Last week, RPG Life Sciences reported a 16.5 percent year-on-year revenue increase to 211.6 crore rupees for the September quarter, exceeding the quarterly figure of 200 crore rupees for the first time.

Earnings before interest, taxes, depreciation, and amortization (EBITDA) grew by 15 percent, excluding one-time acquisition costs, and the gross margin increased by 260 basis points.

Nair explained the margin expansion due to improved product mix, strategic inventory accumulation, and price increases for customers, despite rising freight, solvent, and packaging costs amid the Middle East conflict. He also emphasized that the company has not faced supply issues.

Regarding future prospects, Nair stated that the company aims to maintain a growth trajectory supported by internal drug development, acquisitions, and the revival of international drug development business.

He added that the company is strengthening its presence in regulated foreign markets in Europe and Canada, as well as in new markets like Latin America and Africa. Nair reported that they have received tenders in some Latin American markets and successfully completed their first contract development and manufacturing (CDMO) project on time.

Nair also noted that RPG Life Sciences does not expect a significant impact on its sales or margins due to government restrictions on the trade markup of anti-cancer drugs.

Although maximum retail prices (MRP) must be reduced for its oncology brands such as Ivzumab (bevacizumab), as well as Densurak, Denbri, and Debrumab (all denosumab), Nair stated that the company's own selling prices will remain largely unchanged.

Welcoming this change, Nair suggested that increased accessibility could ultimately lead more patients to treatment and support volumes in the oncology and specialized drug portfolios.

He also mentioned that the company plans to leverage its existing network of specialists, particularly in nephrology and rheumatology, to promote the newly launched generic version of semaglutide.

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BioGeometry's work is based on two AI engines, each functioning at a different scale. The GeoFlow model works with molecules; it is an atomic model that predicts biomolecular structures and creates new ones from scratch. The first version of GeoFlow, launched in June 2024, demonstrated alignment with AlphaFold 3 in predicting protein complexes. Its capabilities then grew: version V2 appeared in April 2025 and became the first Chinese AI model capable of performing de novo antibody design.

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Despite the slow and expensive process of drug discovery, most candidates fail. AI promises to improve chances by developing more advanced molecules from the outset. BioGeometry is betting on realizing this potential while simultaneously generating revenue through synthetic biology. For investors, this is a rare combination of ambitious goals and short-term income. Furthermore, the AI biotechnology scene in China is rapidly developing, even amid tightening US regulations on deals in this area. Global pharmaceuticals will closely watch who can compete with tools at the AlphaFold level.

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