Sun Pharma To Increase Stake In US-Based Stroke Drug Maker For $25 Million
Sun Pharma will receive the option to negotiate the licensing of Sovateltide for marketing and distribution in certain developed market countries.
Sun Pharmaceutical Industries Ltd. made additional investment in US-based Pharmazz Inc. by $25 million or around Rs 213 crore to increase its stake.
The Indian pharma major signed the investment agreement with Pharmazz, which will trigger the conversion of earlier investment through Simple Agreement for Future Equity, resulting in the aggregate stake of up to 22.7% in Pharmazz on a fully diluted basis, according to a stock exchange filing on Friday.
The company invested $15 million in August last year for over a 5% stake.
Led by an India-American doctor-entrepreneur Anil Gulati, Pharmazz is developing two leading drug candidates — Sovateltide, for the treatment of acute cerebral ischemic stroke, and Centhaquine for the treatment of hypovolemic shock. Both products are approved in India and marketed through partners under brands, Tyvalzi (Sovateltide) and Lyfaquin (Centhaquine) and are being developed for the US and other markets.
Through this deal, Sun Pharma will receive the option to negotiate the licensing of Sovateltide for marketing and distribution in certain developed market countries. The company has already received the exclusive right to license Sovateltide for marketing and distribution in certain emerging market countries.
The investment will be made in two tranches in May and November.
Sun Pharma's consolidated net profit fell 19% year-on-year to Rs 2,154 crore in the March quarter, missing the estimates shared by analysts.
Shares closed 2.14% higher at Rs 1,683.25 on the BSE, compared to a 0.95% gain in the benchmark Sensex. The stock has fallen 11% in the last 12 months and risen by 13% so far this year.
