RPG Life to open biotech unit in Thane

RPG Life Sciences, the healthcare company of the RPG Enterprises, is considering setting up a manufacturing facility in Thane, Maharashtra, for speciality biopharmaceuticals.

The company sources said that the the facility would be one of the few US FDA-compliant biopharmaceutical plants in India.

They added that the initial investment for setting up the plant would be in the tune of Rs 15 crore to 20 crore. It would be scaled up further in the next two or three phases. They, however, declined to reveal the total investment in the greenfield project.

Apart from this greenfield project, the company would also expand its biotech research centre, currently located near the proposed plant.

The company's research & development centre has 50 scientists and post-expansion, the number of scientists at the centre would be more than 100, the sources said.

RPG Life's current move to focus on the fast-emerging biotechnology segment gains significance, as a number leading business groups in India are set to explore this opportunity globally.

India is one of the most advantageous location for R&D in biotechnology as far as cost, talent and other natural resources are concerned.

At present, the RPG group company has presence in the pharmaceuticals market with its fermentation products mainly in the active pharma ingredients (API) segment.

The company has a manufacturing plant in Ankleshwar, which is dedicated for APIs and also for certain biotechnology products.

The company sources added that the Ankleshwar plant will be made US FDA-compliant soon.

RPG Life Sciences, which had a feeble presence in the Indian pharmaceuticals market so far, is now planning to introduce biopharmaceutical products in the speciality therapeutic segments of oncology, cardiovascular diseases and diabetes.

Early this week, the company had announced an employee stock option plan(ESOP) aggregating 18,000 equity shares, with the exercise price fixed at Rs 95 per equity share. These options will vest one-fifth on linear scale-based on performance every year, after one year from the date of grant.

As per rules of 2005 ESOP, option can be exercised any time within 10 years from the respective date of vesting, subject to other rules of the plan.

It had also recently approved an issue of up to 20,00,000 equity shares on preferential basis to several investors at a price calculated in accordance with Sebi guidelines.

The company had also approved an issue of 6,00,000 warrants to one of the promoter companies at the same price at which equity shares would be issued on preferential basis.