Sun Pharma to acquire Concert Pharmaceuticals to bolster dermatology franchise
India-based Sun Pharmaceutical Industries (Sun Pharma) will acquire US-based Concert Pharmaceuticals for equity consideration of $576 million to strengthen its global dermatology franchise.
Concert Pharmaceuticals is developing deuruxolitinib, a novel, deuterated, oral Janus kinases JAK1/2 inhibitor for the treatment of Alopecia Areata, an autoimmune dermatological disease resulting in partial or complete loss of hair on the scalp and body.
The US biotech firm has evaluated the efficacy and safety of deuruxolitinib in adults with Alopecia Areata in two Phase 3 trials and is also evaluating the use of deuruxolitinib in other indications.
Abhay Gandhi — Sun Pharma North America CEO said: “The acquisition of Concert adds a late-stage, potential best-in-class treatment for Alopecia Areata in deuruxolitinib.
“There is a significant unmet need in the Alopecia Areata space and we aim to build on Concert’s commitment to supporting the Alopecia Areata patient community.”
Sun Pharma will acquire all outstanding shares of common stock of Concert Pharmaceuticals through a tender offer.
Under the agreement, Concert Pharmaceuticals shareholders will also receive an additional $3.50 per share of common stock in cash, payable upon deuruxolitinib achieving certain time-base net sales milestones.
Roger Tung — Concert Pharmaceuticals President and CEO said: “We are proud to see our team’s accomplishment – creating a valuable new drug candidate for a major, underserved disease – appropriately recognized and valued by Sun Pharma as a means to expand their ongoing, international commitment to dermatology.”
Sun Pharma said its immediate focus would be to follow Concert Pharmaceuticals’ plan to submit a New Drug Application to the US Food and Drug Administration in the first half of 2023.
The deal is anticipated to close in the first quarter of 2023, subject to regulatory approvals and other customary closing conditions.