Aurobindo Pharma to invest Rs 420 cr in veterinary firm Cronus for 51% stake

Aurobindo Pharma will invest Rs 420 crore in Hyderabad-based veterinary pharmaceutical products company Cronus Pharma Specialties India to pick up 51 per cent stake. “We would like to inform that the Company 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 crore,” stated a filing by Aurobindo.

Aurobindo’s Rs 420 crore investment amounts to subscription of 95,059,963 equity shares of Rs 10 each at a premium of Rs 34.18 per equity share. “After subscription, the company will own 51 per cent of the equity share capital of Cronus Pharma Specialities India Private Limited,” stated the filing.

The acquisition is likely to be complete within eight weeks, subject to closing of conditions.

Cronus is engaged in the development, manufacturing and sale of generic veterinary pharmaceutical products and custom research organisation (CRO) services. It also caters to export markets. Cronus’ acquisition will provide Aurobindo a foothold in the $48 billion global animal health market.

The veterinary company has 67 products in its pipeline out of which 22 have been filed and six have been approved by the Centre for Veterinary Medicine, United States FDA. Cronus has a factory in Hyderabad.

It has built a dedicated non-sterile and sterile manufacturing facility focused on veterinary pharmaceutical products, spanning an area of 10 acres. The plant awaits regulatory inspections and will commence commercial production upon regulatory approval.

Cronus was incorporated in September 2015, with presence in the US and India. Its turnover for FY20 was Rs 6.6 crore, while for FY21 it was Rs 11.4 crore.

PricewaterhouseCoopers was the consulting firm in this deal.

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