Building dermatology franchise, Sun buys Concert in latest CVR deal
With cash running short, 17-year-old Concert accepts offer for $576M up front as it finally neared commercial stage
In yet another example of biotech M&A with contingent payouts to address outstanding risk around a late-stage product, Sun is acquiring Concert, giving the India-based biopharma a deuterated JAK inhibitor primed for regulatory submissions to treat alopecia areata.
Sun Pharmaceutical Industries Ltd. (NSE:SUNPHARMA; BSE:524715) will pay $8 per share, or $576 million, up front to acquire Concert Pharmaceuticals Inc. (NASDAQ:CNCE). The deal includes two non-tradeable contingent value rights associated with sales thresholds for JAK1/JAK2 inhibitor deuruxolitinib (CTP-543): $1 per share if sales of the therapy cross $100 million in any fiscal year through FY27, ending March 31, 2027; and $2.50 if they exceed $500 million in any four-quarter period by YE29...