Sun Pharma to acquire Concert Pharmaceuticals, advancing alopecia areata treatment

Sun Pharma has reached a definitive agreement to acquire outstanding shares of Concert Pharmaceuticals Inc. for $576 million in equity value, according to a press release issued by the two companies.

The acquisition will add deuruxolitinib, a Janus kinase inhibitor designed for the treatment of alopecia areata, to Sun Pharma’s portfolio.

The tender offer is equal to $8 per share of common stock, in addition to a contingent value right for up to $3.50 per share of common stock in cash based on deuruxolitinib achieving net sales milestones.

“We are pleased to enter into this exciting transaction with Sun Pharma, which delivers substantial value to our shareholders and is the outcome of a thorough review process overseen by the Concert Board,” Roger Tung, PhD, president and CEO of Concert, said in the release. “Our mission at Concert has always been to translate innovative science to clinical solutions in order to meaningfully improve patients’ lives. We are proud to see our team’s accomplishment — creating a valuable new drug candidate for a major, underserved disease — appropriately recognized and valued by Sun Pharma as a means to expand their ongoing, international commitment to dermatology.”

Concert has made significant advancements in deuruxolitinib. Safety and efficacy trials have been completed for deuruxolitinib in adults with moderate to severe alopecia areata and Concert’s THRIVE-AA phase 3 program is currently ongoing. According to the release, Sun Pharma’s immediate focus is to submit a new drug application to the FDA for deuruxolitinib in the first half of 2023.

“The acquisition of Concert adds a late-stage, potential best-in-class treatment for alopecia areata in deuruxolitinib,” Abhay Gandhi, CEO Sun Pharma North America, said. “There is a significant unmet need in the alopecia areata space and we aim to build on Concert’s commitment to supporting the alopecia areata patient community. We are well-positioned to successfully bring this product to market globally.”

The transaction is expected to be completed in the first quarter of 2023, according to the release.