Sun Pharma to acquire US-based Concert Pharma for $576 million

AHMEDABAD: Homegrown pharma major, Sun Pharmaceuticals Limited on Thursday announced it has signed a definitive agreement to acquire all outstanding shares of Concert through a tender offer, for US $576 million. The transaction has been approved by boards of both the companies. Concert Pharma is a late-stage biotechnology company pioneering the use of deuterium in medicinal chemistry.

It has an extensive patent portfolio including its lead product candidate deuruxolitinib – an oral inhibitor of Janus Kinases JAK1 and JAK2 for the treatment of Alopecia Areata, an autoimmune dermatological disease.

Sun Pharma’s immediate focus would be to follow Concert’s plan to submit a New Drug Application (NDA) to the US Food and Drug Administration (USFDA) 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, CEO North America, Sun Pharma.

“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. We are well-positioned to successfully bring this product to market globally. I look forward to welcoming the exceptionally talented Concert team who have worked tirelessly to develop the product to bring it to market,” he further added.

As part of the terms of the merger agreement, Sun Pharma will promptly commence a tender offer to acquire all outstanding shares of Concert common stock. The transaction is expected to be completed in the first quarter of 2023.

Sun Pharma had net cash of $1.6 billion as of September 30, 2022.

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