Sun Pharma To Raise Stake In Pharmazz To 22.7% With $25-Million Investment

Sun Pharmaceutical on Friday said it will invest up to $25 million in US-based biopharma firm Pharmazz Inc., increasing its stake to as much as 22.7% on a fully diluted basis. The move strengthens Sun Pharma’s position in novel therapies for critical care, the company said in a regulatory filing.

The investment will be made in two tranches. The first tranche, due by May 31, includes $10 million along with $7.5 million from a previously announced simple agreement for future equity. The second tranche of $15 million will be completed by Nov. 30 or a mutually agreed date, subject to customary conditions.

Pharmazz is developing two lead candidates—Sovateltide for treating acute cerebral ischemic stroke and Centhaquine for hypovolemic shock.

Last August, Sun Pharma had committed to invest up to $15 million in Pharmazz, convertible into equity at a 20% discount to pre-money valuation during the next qualified fundraising round.