Aurobindo Pharma Ltd to acquire stake in Cronus

Aurobindo Pharma Ltd has entered into definitive agreements under which the Company will subscribe to fresh equity shares in Cronus Pharma Specialities India Private Limited (Cronus), subject to closing conditions, amounting to Rs. 420 Crores. Cronus is a Hyderabad based generic veterinary pharmaceutical products company engaged in development, manufacturing and sale of veterinary pharmaceutical products. Subsequent to this investment, the Company will own 51% of the Equity share capital of Cronus.

Cronus Pharma Specialities India Private Limited ("Cronus") was incorporated on September 2,2015. It has built a dedicated non-sterile and sterile manufacturing facility focused on veterinary pharmaceutical products for regulated markets in SEZ, spanning an area of 10 Acres with dedicated manufacturing blocks for various dosage forms. The plant awaits regulatory inspections and will commence commercial production upon regulatory approval. Cronus has 67 products in its pipeline, of which 22 have been filed and 6 have been approved by the Centre for Veterinary Medicine, USFDA. Cronus also generates income as a CRO (Custom Research Organisation)

The Target company is in the business of veterinary pharmaceutical formulation business catering to export markets and complements the Company's product offerings in the regulated markets. The acquisition will provide the Company a foothold in the US$48 Billion global animal health market. Cronus has 67 products in its pipeline, of which 22 have been filed and 6 have been approved by the Centre for Veterinary Medicine, USFDA.

Shares of Aurobindo Pharma Ltd. was last trading in BSE at Rs. 825.7 as compared to the previous close of Rs. 856.85. The total number of shares traded during the day was 175907 in over 11398 trades.

The stock hit an intraday high of Rs. 864.3 and intraday low of 822.3. The net turnover during the day was Rs. 147725246.

Source : Equity Bulls

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