By: IPP Bureau
Last updated : August 13, 2021 10:17 am
The acquisition will provide it with a foothold in the US $ 48 billion global animal health market
Aurobindo Pharma is acquiring a 51% stake in Hyderabad-based generic veterinary pharmaceutical products firm Cronus Pharma Specialities India for ₹420 crores.
The acquisition is expected to be completed in eight weeks, which will provide it with a foothold in the US $ 48 billion global animal health market, Aurobindo stated in a release.
Cronus Pharma has a manufacturing facility focused on veterinary pharmaceutical products for regulated markets in SEZ, spanning 10 acres. The plant will commence commercial production on getting regulatory approval. The firm has 67 products in its pipeline, of which 22 have been filed and six approved by the Centre for Veterinary Medicine, USFDA.
Noting it has entered into a definitive agreement for the acquisition, Aurobindo said Cronus is also a CRO and has a wholly-owned subsidiary in the U.S. Cronus is also based in Hyderabad and has a wholly-owned unit in the US. The company was incorporated in September 2015. It has a non-sterile and sterile manufacturing facility spread over 10 acres to make veterinary drugs for regulated markets in a special economic zone. It also generates income as a custom research organisation.
The Indian animal healthcare market is estimated to be approximately Rs. 5,000 crores (2020) and is projected to grow by 10 per cent this year. The species share in the AH market is 51% of livestock, 35% of poultry, 8% of companion animals and 5% of Aqua.
In a results update, For the quarter ended June, Aurobindo Pharma has posted a consolidated net profit of Rs 769.97 crores, which is a decline of nearly 2% from the Rs 783.16 crores registered in the corresponding period of the last financial year. Revenue from operations fell almost 4% to Rs 5,701.98 crores (Rs 5,924.78 crores).
Managing Director N. Govindarajan said, “The quarter’s performance reflected the resilience in our operations amidst the current challenging times. We remain focused on ensuring business continuity on the operations front and to resolve regulatory issues in some of our facilities.” The company has declared an interim dividend of Rs 1.50 per equity share of Re 1.
Making announcements after a Board meeting, Aurobindo said in another decision the Board has approved the amalgamation of two wholly-owned subsidiaries Auronext Pharma and Mviyes Pharma Ventures with it.