The Hindu Business Line : Reliance Life Sciences looking out for acquisitions

Close watch
RLS and its wholly owned subsidiary RPL have got analysts closely watching growth plans play out, particularly on potential acquisition targets.

Mumbai/Delhi June 13 With growth on the agenda, Reliance Life Sciences (RLS) and its fledgling subsidiary Reliance Pharmaceuticals Ltd (RPL) are looking at options, including roping in a strategic partner or an outright acquisition.

The company is reported to be scouting for a potential acquisition in the US, an industry source told Business Line. Responding to queries on the company's growth plans, the RLS President and Chief Executive Officer, Mr K.V. Subramaniam, told Business Line, "As an initiative that is in the growth phase, both organic and inorganic, Reliance Life Sciences would be looking at appropriate opportunities for acquisitions." He, however, said that there were no "active acquisitions" in process.

RLS had picked up 74 per cent equity in the UK-based biotech firm GeneMedix earlier this year. And this was followed up with RLS partnering with the US-based global investment management firm MPM Capital LP. The partnership envisaged RLS becoming a strategic partner in MPM Capital's newest fund, MPM BioVentures IV, with a corpus of $650 million.

RLS is founded by Mr Mukesh Ambani, Chairman of Reliance Industries Ltd, and its wholly owned subsidiary RPL has got analysts closely watching growth plans play out, particularly on potential acquisition targets.

RLS is also believed to be looking at an investment of about Rs 1,000 crore in expanding its capacities to support outsourced manufacturing for existing patent holders, besides supporting RPL's plans to set up a new plant at Jamnagar, Gujarat.

Reliance also plans to invest in its recently approved Haryana SEZ in biotech and agritech research. Besides, Reliance's retail venture would also be aggressively pursuing pharma as a vertical, the source said.

While RLS operates in the biological products segment, RPL would look to tap the opportunity of generic pharmaceutical drugs going off patents.

Globally, over $65 billion worth of medicines are estimated to go off patents by 2010.