Sun Pharmaceutical has agreed to acquire Concert for $576 million to gain access to the American company’s experimental drug for skin conditions and partial hair loss.
Sun Pharmaceutical Industries Ltd Thursday agreed to acquire Concert Pharmaceuticals Inc. For $576 million to access the American company’s experimental drug for skin conditions including patchy hair loss.
Concert Pharmaceuticals holds an extensive patent portfolio, including deuruxolitinib for the late stage treatment of alopecia areata, an autoimmune skin disorder that causes partial hair loss.
The deal will help expand Sun Pharma’s range of dermatology products in the United States. The top priority is to apply for new drug approval to the US Food and Drug Administration (FDA) in the first half of 2023.
“Sun Pharma is building a global dermatology and ophthalmology franchise and aims to be a preferred development and commercial partner in these therapies worldwide. The acquisition of Concert adds a late-stage, potential best-in-class treatment for alopecia areata in deuruxolitinib,” said Abhay Gandhi, chief executive of North America at Sun Pharma.
Sun Pharma will acquire all outstanding shares of Concert through a tender offer for an advance payment of $8 in cash per share of common stock or $576 million in equity capital.
Concert shareholders will also receive a non-tradable, nominal value right to receive an additional $3.50 per share of common stock in cash after the alopecia drug meets certain net sales targets for a specified period of time.
The agreement was agreed by the boards of both companies.
“We are pleased to enter into this exciting transaction with Sun Pharma, which delivers substantial value to our shareholders and is the outcome of a thorough review process overseen by the Concert board,” said Roger Tung, president and chief executive officer of Concert Pharmaceuticals