Sun Pharmaceutical Industries Limited, India’s top pharmaceutical company, has agreed to acquire Concert Pharmaceuticals Inc (NASDAQ: CNCE) for an upfront payment of $8.00 per share, or $576 million in equity value.
Concert stockholders will also receive a non-tradeable contingent value right (CVR) entitling holders to receive up to an additional $3.50 per share in cash, payable upon deuruxolitinib achieving certain net sales milestones within specified periods.
Concert is a late-stage biotechnology company, with its lead product candidate deuruxolitinib – an oral inhibitor of Janus kinases JAK1 and JAK2 for Alopecia Areata, an autoimmune dermatological disease characterized by patchy hair loss.
Concert has completed the evaluation of the efficacy and safety of deuruxolitinib in adult patients with moderate to severe Alopecia Areata in its THRIVE-AA Phase 3 study, and two open-label, long-term extension studies are ongoing.
Sun Pharma’s immediate focus would be to follow Concert’s plan to submit a marketing application to the FDA in 1H of 2023.
The transaction is expected to be completed in the first quarter of 2023.
Sun Pharma had net cash of $1.6 billion, and Concert had approximately $148.9 million in cash, cash equivalents & investments as of September 30, 2022.
Price Action: CNCE shares are up 19.27% at $8.23 during the premarket session on the last check Thursday.
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Source: https://finance.yahoo.com/news/india-based-sun-pharma-scoops-141506616.html