Sun Pharma to invest up to $15 million in Pharmazz Inc.

On August 21, 2024, Pharmazz, Inc. announced that it would receive $15 million in equity from Sun Pharmaceutical Industries Limited, a new investor. An agreement has been made between the company and Sun Pharmaceutical Industries Limited. Sun Pharmaceutical Industries Limited intends to invest $15 million in two installments. Extension of the exclusive license contract between Sun Pharma and the company for the promotion and distribution of Sovateltide in India to a few more emerging markets.

About Pharmazz, Inc.:

The US company Pharmazz, Inc. (“Pharmazz”) is headquartered in Willowbrook, Illinois, USA and specializes in the development of biopharmaceuticals. Among its two main medicinal candidates are Sovateltide for the treatment of sudden ischemic stroke in the brain and Centhaquine for the management of hypovolemic shock. Both products have been approved in India and are marketed under the brands Tyvalzi for Sovateltide and Lyfaquin for Centhaquine. Pharmazz is currently working on developing these products for the US market and other regions. The projected turnover for FY 2023–2024 is $3.0 million.

About Sovateltide:

For the treatment of acute cerebral ischemic stroke, sovateltide is a novel medication that can be given up to 24 hours after symptoms appear. The U.S. Food and Drug Administration (FDA) has granted Pharmazz permission under a Special Protocol Assessment (SPA) to proceed with the Phase 3 clinical trial of Sovateltide for the treatment of acute cerebral ischemic stroke patients, including the study design and statistical analysis plan. A first-in-class medication called sovateltide is used to treat acute cerebral ischemic stroke, a condition in which the brain’s blood supply is cut off, depriving brain tissue of oxygen and nutrients and possibly leading to death or severe brain damage.

About Sunpharma:

Sun Pharmaceutical Industries Limited is a multinational pharmaceutical company based in Mumbai, India. It produces and distributes active pharmaceutical ingredients and pharmaceutical formulations to over 100 countries worldwide. A leader in specialty, generics, and consumer healthcare products, Sun Pharma is a global player in the specialty generics market. It is the biggest pharmaceutical business in India and one of the leading generic brands in the United States and other emerging markets. Innovative treatments in dermatology, ophthalmology, and onco-dermatology are part of Sun Pharma’s rapidly expanding global specialty portfolio, which accounts for more than 18% of total sales. 

Stock price of Sunpharma:

The stock price of Sunpharma slightly declined in intraday trading today and is currently trading at Rs. 1,759.90 per share. It is expected to see a good rise towards the end of the day.

Conclusion: Sun Pharma invested about $15 million in Pharmazz, which is a good move for the long-term business prospects in the pharmaceutical industry.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.