RPG Life Sciences targets Rs 1,000-cr revenue in 5 yrs

Pharma company to enter US market in two-three years

RPG Life Sciences is aiming to quadruple its revenue to Rs 1,000 crore over the next five years through a mix of product in-licensing, product diversification and entry into the US market.

The company recently tied up with Italian company Labo Cosprophar to sell cosmetology products such as anti-aging and hair growth treatments in the domestic market. The products will be sold on prescription initially and through over-the-counter in the second phase.

RPG Life Sciences managing director C T Renganathan said that the focus was on growing formulations business and the company would introduce innovative and differentiated products in oncology and other therapies.

He added that the company was in discussions with other firms for in-licensing of these products.

RPG Life Sciences is a part of the RPG Group and has an annual turnover of Rs 280 crore (FY16), but under Renganathan the company is looking to expand its portfolio, increase exports and enter new markets. About 40 per cent of the revenue comes from exports.

The company's formulations units in Ankleshwar and active pharmaceutical ingredients plant in Navi Mumbai were served warning letters by the US Food and Drugs Administration in 2013 and the company hopes to receive clearance from the regulator next year.

Renganathan said that remedial measures were underway at the plants and the company hopes to enter the US market by 2019.

“We are establishing a partnership arrangement for research and development and active pharmaceutical ingredients. We will make the formulations and supply to the US either through a partner or directly. We are exploring both the models,” he added.

The company is also diversifying into new areas such as cosmetology and dermatology. Currently, its tie-up with the Italian company covers only two products but it is exploring marketing of more products in beauty and skin care.

Manuel Falsarella, president and international sales manager of Labo Cosprophar, said the company saw a big potential in the cosmetology space in India and aimed to capture 10 per cent of the market in the hair growth and anti-aging segments. Currently, the prescription market in these two segments is valued at around Rs 250 crore.
LOOKING TO EXPAND

• RPG Life Sciences recently tied up with Italian company Labo Cosprophar to sell cosmetology products such as anti-aging and hair growth treatments in domestic market
   
• Focus on growing formulations business; company in talks with other firms for in-licensing of products
   
• Company’s formulations units in Ankleshwar and active pharmaceutical ingredients plant in Navi Mumbai were served warning letters by the US FDA in 2013; it hopes to get clearance from regulator next year