Sun Pharmaceutical Industries recently announced a $25 million investment agreement with US biopharmaceutical company Pharmazz Inc, which will give Sun Pharma a 22.7 per cent stake in the company. The investment is subject to approvals and other procedures and will support Pharmazz’s development of two drug candidates: Sovateltide for acute cerebral ischemic stroke and Centhaquine for hypovolemic shock. These products are already approved in India and marketed under the brands Tyvalzi and Lyfaquin, with plans for expansion into the US and other markets.
Investing $5.88925 per share in cash, Sun Pharma will also have the option to negotiate the licensing of Sovateltide for marketing and distribution in certain developed market countries. Additionally, the company holds an exclusive license to market Sovateltide in certain emerging markets. The first tranche of $10 million, along with the remaining $7.5 million from the SAFE tranche 2 investment, is set to be invested by May 31, 2025. The second tranche of $15 million will follow by November 30, 2025, pending the fulfillment of customary conditions. Both of Pharmazz’s product have received Phase-3 IND approvals from the US FDA, with plans for global Phase-3 trials for Sovateltide to support potential approval in the US and other markets.
Sun Pharma’s investment in Pharmazz showcases its commitment to expanding its portfolio and supporting innovative drug development. The partnership with Pharmazz provides Sun Pharma with a strategic opportunity to access new markets and diversify its offerings. With a strong focus on research and development, Sun Pharma aims to leverage its expertise and resources to drive growth and create value for both companies. As the pharmaceutical industry continues to evolve, collaborations like this are essential for companies to stay competitive and meet the changing needs of patients worldwide.