Sun Pharma to invest $25 million in Pharmazz Inc; raises stake to 22.7%

On Friday, Sun Pharmaceutical Industries Ltd revealed it will invest as much as $25 million in Pharmazz Inc, a company based in the US, raising its total ownership in the biopharmaceutical firm to 22.7 percent.

The investment, valued at $5.88925 per share in cash, will also initiate the conversion of a prior Simple Agreement for Future Equity (SAFE) investment at a 20 percent discount, resulting in a conversion price of $4.7114 per share, the company announced in a stock exchange report.

Sun Pharma announced that $10 million from the new investment, together with $7.5 million from the second SAFE tranche, will be injected by or prior to May 31, 2025. The leftover $15 million is anticipated to be invested by or prior to November 30, 2025, or on another mutually acceptable date. Both medications have received approval in India and are sold through partners under the brand names Tyvalzi (Sovateltide) and Lyfaquin (Centhaquine).

Sun Pharma presently possesses exclusive rights to license and distribute Sovateltide in certain emerging markets. After this recent investment, the company will also have the opportunity to discuss licensing rights for Sovateltide in specific developed nations.

Pharmazz has been granted US FDA approval to initiate Phase-3 Investigational New Drug (IND) trials for each of the drugs. Significantly, Sovateltide has obtained a Special Protocol Assessment (SPA) from the FDA, which establishes a clear regulatory route. The firm aims to launch worldwide Phase-3 trials to seek approvals in the US and various international markets. Pharmazz disclosed consolidated revenues of $3 million in FY24, an increase from $0.9 million for both FY23 and FY22.