Aurobindo Pharma to acquire 51 percent stake in veterinary pharma firm Cronus for Rs 420 crore
New Delhi: Aurobindo Pharma has announced a definitive agreement under which it would subscribe to new equity shares in Cronus Pharma Specialities India Private Limited (Cronus), purchasing 51 percent of Cronus' equity share capital, valued at Rs 420 crores.
Cronus is a Hyderabad-based generic veterinary pharmaceutical products company engaged in the development, manufacturing and sale of veterinary pharmaceutical products.
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).
While mentioning the objects and effects of the acquisition, Aurobindo Pharma said in its filing that 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.
Furthermore, it added, "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"
In connection with the acquisition of Cronus Pharma Specialities India Private Limited by Aurobindo Pharma, PricewaterhouseCoopers Business Consulting Services LLP has been engaged by the company to advise it in connection with the valuation of Cronus Pharma, and Pricewaterhouse Coopers Services LLP has been engaged by the company to advise it in connection with carrying out financial and tax due diligence on Cronus Pharma.