Sun Pharma picks up 14.6% stake in US based company for $13 million

Sun Pharma has invested $13 million in the US-based scPharmaceuticals Inc

The Dollar Business Bureau 

Sun Pharma on Friday announced it has invested $13 million (about Rs.88 crore) in the US-based scPharmaceuticals Inc.

"...One of the wholly-owned subsidiaries of the company has acquired 13,000,000 Series B preferred stock of scPharmaceuticals Inc (equivalent to 14.58% fully diluted equity stake on conversion) by way of allotment," Sun Pharmaceutical Industries said in a statement. 

"Consideration for Series B preferred stock acquired is $13 million," it said.

scPharmaceuticals Inc is a United States-based pharmaceutical company developing a portfolio of transformative pharmaceutical products for subcutaneous delivery.  

On Thursday, Sun Pharma announced it was planning to acquire a branded oncology product, Odomzo, from Novartis. 

The agreement was signed between subsidiaries of both the companies and is slated to close following anti-trust clearance and further closing conditions. 

The agreement was signed for an upfront payment of $175 million and additional milestone payments.

Sun Pharma is the world's fifth largest speciality generic pharmaceutical company, with  47 manufacturing facilities spread across 6 continents, R&D centres across the globe and a multi-cultural workforce comprising over 50 nationalities.

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The Dollar Business Bureau - Dec 23, 2016 12:00 IST