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FILE PHOTO: The Sun Pharm logo outside the company’s office in Mumbai
| Photo Credit:
Francis Mascarenhas
Sun Pharmaceutical Industries has entered into an agreement with US biopharmaceutical company Pharmazz Inc to invest up to $25 million. The investment, post approvals and other procedures, will peg Sun Pharma’s investment in the company at 22.7 per cent.
The company is developing two drug candidates, Sovateltide for the treatment of acute cerebral ischemic stroke, and Centhaquine for hypovolemic shock. Both products are approved in India and marketed through partners under brands, Tyvalzi (Sovateltide) and Lyfaquin (Centhaquine), besides being developed for the US and other markets, Sun told the stock exchanges. The company’s consolidated turnover for FY 2023-24 was $3 million.
Explaining its investment, Sun Pharma said, it would have an option to negotiate licensing of Sovateltide for marketing and distribution in certain developed market countries. Sun already has an exclusive licence to market Sovateltide in certain emerging markets.
The investment, at $5.88925 per share in cash, triggers conversion of investment under SAFE (Simple Agreement for Future Equity) at 20 per cent discount or $4.7114 per share. Post the current investment and SAFE conversion, Sun’s stake in Pharmazz would be 22.7 per cent on a fully dilutive basis, it said.
The first tranche of $10 million, along with the balance $7.5 million out of SAFE tranche 2 investment, as reported earlier, would be invested on or before May 31, 2025, it said. The second tranche of $15 million would be invested on or before November 30, 2025, or a mutually agreed date, pending fulfilment of customary conditions, it added.
Further, Sun said, Phase-3 INDs (investigational new drug) for both of Pharmazz’s products were approved by the US Food and Drug Administration. “Sovateltide has received a Special Protocol Assessment (SPA) agreement from the US FDA, providing a clear development and regulatory path in the US,” it said, adding that Pharmazz plans to initiate global Phase-3 trials soon for Sovateltide, to support potential approval in the US and ex-US markets.
Published on May 24, 2025
This article first appeared on The Hindu Business Line
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