Sun Pharmaceutical Industries Ltd on Friday announced it will invest up to $25 million in US-based Pharmazz Inc, increasing its total stake in the biopharmaceutical company to 22.7 per cent.
The investment, priced 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 per cent discount, translating to a conversion price of $4.7114 per share, the company said in a stock exchange filing.
Sun Pharma stated that $10 million from the fresh investment, along with $7.5 million from the second SAFE tranche, will be infused by or before May 31, 2025. The remaining $15 million is expected to be invested by or before November 30, 2025, or on another mutually agreed date.
Both drugs have been approved in India and are marketed via partners under the brand names Tyvalzi (Sovateltide) and Lyfaquin (Centhaquine).
Sun Pharma currently holds exclusive rights to license and distribute Sovateltide in select emerging markets. Following this latest investment, the company will also gain the option to negotiate licensing rights for Sovateltide in certain developed countries.
Pharmazz has received US FDA approval to conduct Phase-3 Investigational New Drug (IND) trials for both drugs. Notably, Sovateltide has also secured a Special Protocol Assessment (SPA) from the FDA, outlining a defined regulatory pathway. The company plans to initiate global Phase-3 trials to pursue approvals in the US and other international markets.
Pharmazz reported consolidated revenues of $3 million in FY24, up from $0.9 million each in FY23 and FY22.
Pharmazz portfolio and market strategy
Pharmazz Inc is a clinical-stage biopharmaceutical company focused on two drug candidates:
Sovateltide, for the treatment of acute cerebral ischemic stroke
Centhaquine, for treating hypovolemic shock
