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RPG Life Sciences inks pact to acquire Sun Pharma's 7 brands

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Press Trust of India New Delhi
Last Updated : Jul 27 2016 | 6:13 PM IST
Drug firm RPG Life Sciences today inked a pact to acquire seven prescription brands from Sun Pharmaceutical Industries for a consideration of Rs 41 crore.
The company "today signed an agreement to acquire seven prescription brands from Sun Pharmaceutical Industries Ltd together with its subsidiaries", RPG Life Sciences said in a filing to the BSE.
The move is in line with the company's strategy to focus on formulation business. The acquired brands are primarily in respiratory and urology segments. In addition to this, three products will compliment the company's existing range, it added.
Commenting on the development, RPG Life Sciences MD CT Renganathan said: "Historically, the company has invested in in-licensing products. This is the first time that we have made a brand acquisition".
The company believes these brands have a huge potential to grow and are a perfect fit to its current portfolio and in line with the long-term growth strategy, he added.
This deal is subject to receipt of Competition Commission of India's (CCI) approval, RPG Life Sciences said.

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The company also announced collaboration with US-based API firm Biophore to develop, file and commercialise products specifically targeting the US market.
As part of the tie-up, Biophore will develop, manufacture and file finished dosage formulations (DMF) for the APIs where as RPG Life Sciences shall develop, manufacture, file and commercialse these products from its manufacturing facility for regulated markets, RPG Life Sciences said.
The company will also partner with Biophore for the development of niche products for the US market. To begin with, the company will start with four projects which shall be achieved in two phases comprising of two products each, it added.
"The company will own the ANDA for these products in the US market while exploring the potential for these products in the other regulated markets with Biophore," RPG Life Sciences said.
"This alliance is in accordance with our target to enter the US market in the next 24 to 36 months from now. We desire to have our own set up in the region and shall adopt strategic partnership models for this market for product development and marketing focused for US market," Renganathan said.
RPG Life Sciences "will explore and go for first to file, first few to file, NCE-1 product opportunities for US market along with niche formulations with limited competition", he added.
Shares of RPG Life Sciences today closed at Rs 352.50 per scrip on BSE, up steep 18.75 per cent from its previous close.

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First Published: Jul 27 2016 | 6:13 PM IST

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