Sun Pharmaceutical Industries Limited (together with its subsidiaries and/or its associated companies, Sun Pharma) and Concert Pharmaceuticals, Inc. (Concert) announced that they have entered into a definitive agreement pursuant to which Sun Pharma will acquire all of the outstanding shares of Concert by way of a tender offer for an initial cash payment of 8.00 dollars per common share, or $576 million in net worth.
Concert shareholders will also receive a non-negotiable contingent value right (CVR) entitling them to receive cash up to an additional $3.50 per common share, payable if deuruxolitinib achieves certain net sales milestones during specified periods. , subject to the terms contained in a contingent value rights agreement specifying the terms of those rights, the statement said.
The transaction has been approved by the boards of directors of both companies, a statement said.
Concert is a late-stage biotechnology company pioneering the use of deuterium in medicinal chemistry. Concert 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 – in late-stage development.
“Sun Pharma is in the process of establishing a global franchise in dermatology and ophthalmology and aims to become a preferred commercial and development partner for these therapies worldwide. The acquisition of Concert adds a potentially best-in-class advanced treatment for alopecia areata, deuruxolitinib,” said Abhay Gandhi, CEO of Sun Pharma for North America. “There is a significant unmet need in the treatment of alopecia areata and we want to build on Concert’s commitment to supporting the alopecia areata patient community. We are well positioned to successfully bring this product to market internationally. I look forward to welcoming the exceptionally talented team at Concert who have worked tirelessly to develop this product to bring it to market.”
“We are pleased to complete this exciting transaction with Sun Pharma, which brings substantial value to our shareholders and is the result of a rigorous evaluation process overseen by Concert’s Board of Directors,” said Roger Tung ., Ph.D., Chairman and CEO of Concert. “Our mission at Concert has always been to translate scientific innovations into clinical solutions to significantly improve the lives of patients. We are proud to see one of our team’s accomplishments – the development of a valuable new drug candidate for a serious disease with limited treatment options – duly recognized and appreciated by Sun Pharma as a means of extending its ongoing international commitment in dermatology. I am confident that this transaction will maximize value for our shareholders and improve access to deuruxolitinib for patients with alopecia areata.”
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