RPG Life Sciences to launch GLP-1 drug in October after ₹215 crore API acquisitions

RPG Life Sciences is set to enter the fast-growing GLP-1 market in October, even as the drugmaker accelerates its broader expansion through acquisitions and capacity additions in its API business.

The company has spent ₹215 crore on two API acquisitions in five weeks, taking its manufacturing capacity from 110 KL to 505 KL and more than doubling its API customer base.

RPG Life Sciences Managing Director Ashok Nair told Business Today that the company is preparing to launch its GLP-1 product in October.

The company has tied up with a research innovator for the product. Nair said RPG Life Sciences sees the GLP-1 segment as a significant opportunity, particularly because of its presence in niche therapeutic areas.

Nair expects India's GLP-1 market to grow to around ₹4,000 crore over the next three to four years. The company expects its specialty-focused portfolio to help it gain a share of the growing market.

API capacity jumps after acquisitions

The GLP-1 push comes as RPG Life Sciences is also rapidly expanding its API business.

The company acquired Actis Generics for ₹85 crore, followed by the acquisition of Raghava Life Sciences. The two deals have increased its API manufacturing capacity from 110 KL to 505 KL.

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 Its API customer base has grown from 123 to more than 250. The product portfolio has also increased from 14 to 45, while the R&D pipeline has expanded from 12 products to 28.

The API workforce has more than doubled from 217 to over 500 employees.

₹700 crore pool for API expansion

Nair said the company first created the foundation for a larger API business by carving out the division into RPG Active Pharma.

It also raised ₹243 crore by bringing in a healthcare-focused private equity investor. This helped create a committed pool of around ₹700 crore for the business.

RPG Life Sciences then acquired Actis Generics for ₹85 crore. The acquisition added manufacturing and backward-integration capabilities.

Raghava Life Sciences brought around 300 KL of manufacturing capacity, 22 commercialised products, international approvals and established customer relationships.

The acquisitions have transformed RPG Life Sciences from an API-only operation into a backward-integrated API and advanced intermediates business.

Company plans another ₹500-700 crore investment

RPG Life Sciences is now evaluating more acquisitions as well as organic expansion.

The company plans to deploy another ₹500-700 crore over the next 12 months. It will focus on acquisitions that strengthen its manufacturing footprint, product portfolio and technical capabilities.

The company is particularly looking to acquire a large manufacturing site, preferably one with USFDA approvals and a portfolio that complements its existing operations.

Focus remains on niche APIs

RPG Life Sciences plans to focus on niche APIs involving difficult chemistry and multi-step synthesis rather than commoditised products.

According to Nair, these APIs typically have higher technical entry barriers, stronger customer stickiness and lower exposure to price erosion.

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The company also has significant capacity available for future growth.

Its Navi Mumbai facility is operating at around 60% utilisation, while Actis is close to full utilisation. Raghava is currently operating at around 20%.

The company expects Raghava alone to generate around ₹200 crore in revenue once utilisation reaches 70-80%.

RPG Life Sciences is targeting overall utilisation of 75-80% across its three API manufacturing facilities as it integrates the acquisitions and extracts synergies.

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