Sun Pharma Raises Stake in Pharmazz to 22.7%

25 May 2025 , 10:31 PM

Sun Pharmaceutical Industries Ltd. said it will make additional investment of up to $25 million in US-based biopharmaceutical firm Pharmazz Inc to increase its shareholding in the company to approximately 22.7% on a fully diluted basis. The deal will help boost Sun Pharma’s presence in the high-value specialty drug area in the neurological and critical psychiatric care space.

Pharmazz has two late-stage drug candidates in its pipeline, including Sovateltide for the management of acute cerebral ischemic stroke and Centhaquine for the treatment of hypovolemic shock.

Both the drugs are already approved in India and marketed by local distribution partners in the generic names Tyvalzi and Lyfaquin. Both drugs are also approved for Phase-3 trials by the US Food and Drug Administration, with Sovateltide having obtained a Special Protocol Assessment (SPA), creating regulatory certainty and enabling faster approval in the US.

The entire investment will be paid in two instalments the first of $10 million (which the company has also agreed to issue shares upon) s agreed to be completed by May 31, 2025, and the balance of $15 million. Infusion to be made by November 30, 2025, on fulfillment of certain conditions.

Under the terms of the deal, Sun Pharma reserves the right to enter into licensing agreements for Sovateltide in certain developed markets. The company also has sole marketing rights in some developing markets. The investment is one pillar in a bigger strategy by Sun Pharma to grow its portfolio of specialty drugs. It has a healthy balance sheet with cash balances of $3 billion.

Recently, Sun Pharma has acquired Concert Pharmaceuticals (developer of Leqselvi) and Checkpoint Therapeutics (developer of Unloxcyt) in recent years. The company has allocated $100mn for the US launch of both Leqselvi and Unloxcyt in FY26. The development has come a day after Sun Pharma reported 8.1% YoY revenue growth to ₹12,958.8 crore for Q4FY25. This helped the operating margins expand 437 basis points to 8.6% y-o-y in Q1FY19 but net profit slumped 19% to ₹2,153.9 crore.