Sun pharmaceutical industries Ltd on Friday said it has entered into an agreement with US-based pharmazz inc to invest up to USD 25 million, resulting in increasing its stake in the company to 22.7 per cent. The investment triggers conversion of earlier investment through SAFE (simple agreement for future equity) resulting in aggregate stake of up to 22.7 per cent in Pharmazz on a fully diluted basis, the company said in a regulatory filing.
The first tranche of USD 10 million, along with the balance of USD 7.5 million out of SAFE tranche 2 investment, will be invested on or before May 31, 2025. The second tranche of USD 15 million will be invested on or before November 30, 2025 or such other mutually agreed date, it added.
Pharmazz Inc is a biopharmaceutical company , developing two leading drug candidates, sovateltide for treatment of acute cerebral ischemic stroke and centhaquine for treatment of hypovolemic shock.
Both products are approved in India and marketed through partners under brands Tyvalzi (Sovateltide) and Lyfaquin (Centhaquine), and are being developed for USA and other markets, it added.
Subsequent to the investment, Sun Pharma will receive an option to negotiate licensing of Sovateltide for marketing and distribution in certain developed market countries.
The company has already received exclusive right to licence Sovateltide for marketing and distribution in certain emerging market countries, it added.
