Sun Pharma Expands Specialty Drug Pipeline with $25 Million Pharmazz Deal

24 May 2025 , 07:51 PM

Sun Pharmaceutical Industries Ltd. entered into a long term strategic funding arrangement aggregating USD 25 million for a minority stake in Pharmazz, with an option to take over a majority equity stake in the company, as part of the overall investment plan.

The investment is intended to reinforce Sun Pharma’s presence in the high-value specialty market, primarily in the neurology and critical care therapy segments.

Pharmazz has two late-stage pipeline drug candidates Sovateltide (for treatment of acute cerebral ischemic stroke) and Centhaquine (for treatment of hypovolemic shock). Both treatments have already received approvals in India and are available for sale there with local partners under a brand known as Tyvalzi and Lyfaquin.

Sun Pharma’s proposed investment will be structured in a series of tranches, including an upfront investment of $10 million and conversion of SAFE notes on or before May 31, 2025. It is anticipated that the second tranche of $15 million will be injected by 30 November 2025, assuming compliance with agreed pre requisites.

Under the terms of the agreement Sun Pharma will have the right to negotiate JV partnerships and / or commercial licensing in several developed markets for Sovateltide in addition to the exclusive marketing rights in certain emerging markets that it already possesses.

The investment is part of Sun Pharma s overall strategy for strengthening its global specialty business, which is an important driver of its future growth, to further expand its overall product basket and its presence in the global marketplace.

With approximately $3 billion in cash and credit lines, the company has been an active acquirer in recent years, striking large deals for Concert Pharmaceuticals (Leqselvi) and Checkpoint Therapeutics (Unloxcyt).

Sun Pharma has earmarked a capex of $100 million in FY26 to bring Leqselvi and Unloxcyt to the US market. The Phase-3 clinical trials for both Sovateltide and Centhaquine have been assigned a Special Protocol Assessment (SPA) by the US FDA, signalling agreement on the design of the study and the SPA designation may also lead to an accelerated approval pathway.

The company’s revenue was up 8.1% on a year-on-year basis and stood at ₹12,958.8 crore in Q4 FY25, according to Sun Pharma’s earnings report for Q4 FY25. There was a 22.4% increase when it came to the quarter’s EBITDA compared to the previous year, which shows strengthened profitability and operational power in the period.