By: IPP Bureau
Last updated : August 21, 2021 8:22 am
The acquisition was expected to be completed in eight weeks, and it would have provided it with a foothold in the US $ 48 billion global animal health market
Aurobindo Pharma has terminated its agreement to acquire 51 per cent of Cronus Pharma Specialities India. The board of directors in its meeting held on April 20th 2021, has approved the termination of the aforesaid agreements and the parties have mutually agreed and terminated the said agreements, the stock exchanges were informed
Earlier this week, Aurobindo Pharma had entered into binding agreements with Cronus Pharma Specialities India for the acquisition of 51% ownership in Cronus Pharma by subscribing to 95,059,963 equity shares of Rs.10/- each at a premium of Rs.34.18 per equity share aggregating to Rs.420 crores.
The acquisition was expected to be completed in eight weeks, and it would have provided it with a foothold in the US $ 48 billion global animal health market, Aurobindo had 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.