Nepal Aushadhi Limited a government enterprise established in 2029 under the company Act, 2021 with the help of technical collaboration of the British Government in the form of expertise & equipment, and become a milestone in the pharmaceutical industry of the nation.

The company was an extension of Formulation Unit of Royal Drug Research Laboratory (now National Medicine Laboratory under Department of Drug Administration) which was under Department of Medicinal Plant/Ministry of Forest. Technical experts for formulation of medicine, pharmacists, under the research laboratory were shifted to Royal Drugs Limited for production and quality control activities. The company was installed at Thapathali, within the premises of Royal Drug Research Laboratory which later on was shifted to its own land at Babarmahal. The company could come out with most of the pharmaceutical dosage forms viz: tablets, capsules, liquids (Oral and external), Oral Powder, Injectables (large volume and small volume), Ointments and Eye / Bar and Nasal drops. None of the pharmaceutical industries has been able to cover the range covered by this company till the date.