M&A

M&A

Sun Pharma to acquire US-based dermatology focused biotech co. Concert Pharma for $576-M

Press Release  

Mumbai-based, publicly-listed Sun Pharmaceutical Industries (Sun Pharma) is to acquire all the outstanding shares of Nasdaq-listed, Lexington, MA (USA)-based Concert Pharmaceuticals at USD 8.00 per share in cash, totalling USD 576 million. Concert stockholders will also receive a non tradeable contingent value right (CVR) entitling them to receive an additional USD 3.50 per share of common stock in cash, payable upon the drug deuruxolitinib achieving certain sales milestones. Moelis & Company is serving as financial advisor to Sun Pharma, and Davis Polk & Wardwell as the legal advisor. MTS Health Partners and Chestnut Partners. are serving as financial advisors to Concert, and Goodwin Procter as the legal advisor. In addition, MTS Securities (an affiliate of MTS Health Partners) provided a fairness opinion to the Board of Directors of Concert on the consideration to be received by the shareholders of Concert. Concert 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 leading to hair loss – which is in late-stage development. For the nine-month period ending September 2022, Concert reported a total revenue of USD 29,000 and net loss of USD 90.6 million. As of September 30, 2022, Concert had about USD 148.9 million in cash, cash equivalents and investments.