Sun Pharmaceutical Industries Ltd announced that it will invest up to $25 million in Pharmazz Inc, bringing its total stake in the biopharmaceutical company to 22.7%.
Key Highlights
- Sun Pharma invests $25 million in Pharmazz Inc., increasing its stake to 22.7%.
- Investment supports development of stroke and shock therapies; expands licensing rights for Sovateltide.
The investment, valued at $5.88925 per share in cash, will also trigger the conversion of an earlier Simple Agreement for Future Equity (SAFE) investment at a 20% discount, resulting in a conversion price of $4.7114 per share, according to a stock exchange filing.
Sun Pharma stated that $10 million from the new investment, along with $7.5 million from the second SAFE tranche, will be injected by or before May 31, 2025. The remaining $15 million is expected to be invested on or before November 30, 2025, or on another mutually agreed-upon date.
Both drugs have been approved in India and are sold through partners under the brand names Tyvalzi (Sovateltide) and Lyfaquin (Centhaquine).
Sun Pharma currently has exclusive rights to license and distribute Sovateltide in select emerging markets. Following this latest investment, the company will have the option to negotiate licensing rights for Sovateltide in certain developed countries.
The US FDA has given Pharmazz permission to carry out Phase 3 Investigational New Drug (IND) trials for both medications. Notably, the FDA has granted Sovateltide a Special Protocol Assessment (SPA), which delineates a particular regulatory pathway. In order to obtain approval in the US and other international markets, the company plans to begin global Phase-3 trials.
Compared to $0.9 million in FY23 and FY22, Pharmazz reported consolidated revenues of $3 million in FY24.
Pharmazz's portfolio and marketing strategy
- Pharmazz Inc is a clinical-stage biopharmaceutical company that focuses on two drug candidates.
- Sovateltide is used to treat acute cerebral ischemic strokes.
- Centhaquine used to treat hypovolemic shock.
