RPG Life Sciences has signed an agreement with Sun Pharmaceutical to acquire seven prescription brands primarily in respiratory and urology segments and entered collaboration with Biophore, US, for the development of niche products. The company also entered into business transfer agreement in May 2016 with Intas Pharmaceuticals Ltd for sale of Biotech Business Unit, as going concern on a slump sale basis for a total consideration of Rs.24.87 crore.
C T Renganathan, managing director, RPG Life said, “Historically, the company has invested in in-licensing products. This is the first time that we have made a brand acquisition. We believe these brands have a huge potential to grow and are a perfect fit to our current portfolio and in line with our long-term growth strategy.”
Further, RPG has also entered collaboration with US-based Biophore, to develop, file and commercialize products specifically targeting the US market. As a part of this strategic tie-up, Biophore will develop, manufacture and file finished dosage formulations for the API whereas RPG shall develop, manufacture, file and commercialize these products from its manufacturing facility for regulated markets.
RPG will be entering into a collaboration 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. 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.
Renganathan 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. We will explore and go for 'First to File', NCE-1 product opportunities for US market along with niche formulations with limited competition.”
Meanwhile, the net sales of RPG increased by 28.2 per cent to Rs.85.23 crore during the first quarter ended June 2016 from Rs.66.50 crore. Its net profit also went up sharply to Rs.9.87 crore from Rs.2.14 crore.