Sun Pharma enters US derma space through Concert Pharma buy

India’s biggest pharmaceutical player, Sun Pharma, has signed a definitive agreement to acquire the NASDAQ listed biotechnology company, Concert Pharmaceuticals Inc for $576 million. Concert Pharma boasts of an extensive patent portfolio, with one of its flagship products being deuruxolitinib, an oral drug to treat alopecia areata (an autoimmune dermatological disease attacking hair follicles, resulting in hair loss throughout the body).  

The deal is will be undertaken through an upfront cash purchase of all Concert outstanding shares, at $8 per share of common stock. However, additional milestone payments of up to $327 million are payable upon deuruxolitinib crossing the sales milestones of $100 million within a stipulated period. That takes the total consideration to around $827 million overall.

Today, there are limited options at people’s disposal for the treatment of this disease, and one of Sun Pharma’s main focuses is to build a franchise that can serve as therapy centre for such patients. In addition, the drug is in its final stage of testing, and acquiring Concert at this time will ensure a late-stage, best-in-class treatment for the disease.

Given that the drug meets its sales targets, shareholders will subsequently receive a bonus of $1 per share. The deal is part of the aggressive inorganic growth plans of Sun Pharm and it broadly gels into its plans of dominating the dermatological segment, where it already has a lead in the US markets.

Source: Multiple News Websites