Aurobindo Pharma scraps Rs 420cr stake deal with Cronus Pharma

Aurobindo Pharma Limited has scrapped its previously signed binding agreements with Cronus Pharma Specialities India Private Limited, under which it was to acquire a stake of 51% in the latter for INR 420 crores.

The Hyderabad-based pharma manufacturing company said that its board of directors in its meeting held has approved the termination of the agreements.

The parties have agreed mutually and scrapped the agreements.

However, Aurobindo Pharma did not disclose the reason for cancelling the deal.

Aurobindo Pharma was to subscribe to over 95.5 million equity shares of INR 10 each at a premium of INR 34.18 per equity share.

Cronus Pharma Specialities is a generic veterinary pharma products company based in Hyderabad. The company is engaged in developing, manufacturing, and sale of veterinary pharmaceutical products.

Incorporated in 2015, Cronus Pharma Specialities has constructed a non-sterile and sterile manufacturing facility, which is focused on veterinary pharmaceutical products for regulated markets in special economic zones (SEZ) in India. The plant is awaiting regulatory inspections and is slated to begin commercial production after securing regulatory approval.

At the time of signing the deal, Aurobindo Pharma said that the acquisition will enable it to gain a foothold in the $48 billion global animal health market.