Sun Pharma to buy over 5 percent stake in Pharmazz for up to USD 15 million

Written by Ruchika Sharma Published On 2024-08-17T10:00:02+05:30 | Updated On 17 Aug 2024 10:00 AM IST

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Mumbai: Sun Pharmaceutical Industries Limited has entered into an agreement with Pharmazz Inc. Delaware US, pursuant to which the Company has agreed to invest upto USD 15 million resulting in more than 5 percent holding in Pharmazz Inc.

Sun Pharma shall also receive the exclusive right to license Sovateltide for marketing & distribution in certain emerging market countries.

As per the filing, USD 7.5 million (Tranche 1) shall be invested by August 2024, while USD 7.5 million (Tranche 2) shall be invested by February 2025, subject to fulfillment of certain conditions.

The investment shall be convertible to equity at 20 percent discount to pre-money valuation of next qualified fund raise by Pharmazz, subject to premoney valuation cap of USD 130 Million.

Pharmazz Inc is a Delaware, US corporation based in Willowbrook Illinois, US and is a biopharmaceutical company developing its two leading drug candidates, Sovateltide for treatment of acute cerebral ischemic stroke and Centhaquine for treatment of hypovolemic shock. Both products are approved in India and marketed through partners under brands, Tyvalzi (Sovateltide) and Lyfaquin (Centhaquine) and are being developed for USA and other markets. Its turnover for FY 2023-24 is USD 3.0 Million.

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Sun Pharma is an Indian multinational pharmaceutical company headquartered in Mumbai, Maharashtra. The company manufactures and markets a large basket of pharmaceutical formulations covering a broad spectrum of chronic and acute therapies. It includes generics, branded generics, specialty, complex or difficult-to-make technology-intensive products, over-the-counter (OTC), antiretrovirals (ARVs), Active Pharmaceutical Ingredients (APIs), and Intermediates.

Ruchika Sharma

Ruchika Sharma joined Medical Dialogue as an Correspondent for the Business Section in 2019. She covers all the updates in the Pharmaceutical field, Policy, Insurance, Business Healthcare, Medical News, Health News, Pharma News, Healthcare and Investment. She has completed her B.Com from Delhi University and then pursued postgraduation in M.Com. She can be contacted at editorial@medicaldialogues.in Contact no. 011-43720751