Aurobindo Pharma’s share price soared 6.5 per cent at Rs 726 per share on the BSE intraday trade on Monday after the company terminated the pact with Cronus Pharma to acquire a 51 per cent ownership stake.

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The drugmaker in its exchanges filing on Friday had said, “The Board of Directors has approved the termination of the aforesaid agreements and the parties have mutually agreed and terminated the said agreements.”

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Earlier on August 12, 2021, Aurobindo Pharma had entered into binding agreements with Cronus Pharma Specialities India Private Limited for acquisition of 51 per cent ownership in Cronus Pharma by subscribing to 95,059,963 equity shares of Rs.10/- each at a premium of Rs 34.18 per share aggregating to Rs 420 crores, the pharma major also said in its exchange filing.

Since August 12, the stock has underperformed the market by falling 21 per cent on the BSE till Friday (August 20, 2021). Moreover, the counter had hit a new 52-week low of Rs 677 on Friday. 

Cronus is a pharmaceutical company developing, manufacturing and distributing generic veterinary pharmaceutical products. Cronus has a factory at Hyderabad with 67 products in its pipeline, of which 22 have been filed and 6 have been approved by the Centre for Veterinary Medicine, USFDA.

The stock at around 11:46 am was trading around 1 per cent higher to Rs 686.95 per share on the BSE, as against 0.31 per cent jump in the S&P BSE Sensex on Monday.

Earlier last week, the pharma company’s profit after tax was reported at Rs 770 crore in the June-end quarter of the financial year 2021-22, down 1.7 per cent year on year (YoY) and 4 per cent quarter on quarter (QoQ). Similarly, the revenue also fell 3.8 per cent YoY and 5 per cent QoQ to Rs 5,702 crore.