Sun Pharmaceutical Industries Ltd. announced a fresh investment of up to $25 million in US-based biopharmaceutical firm Pharmazz Inc., raising its stake to approximately 22.7% on a fully diluted basis. The move deepens Sun Pharma’s push into high-value specialty products, particularly in the neurological and critical care segments.

Pharmazz, a biopharmaceutical company, is developing two leading drug candidates, Sovateltide for treatment of acute cerebral ischemic stroke and Centhaquine for treatment of hypovolemic shock. Both products are approved in India and marketed through partners under brands, Tyvalzi (Sovateltide) and Lyfaquin (Centhaquine) and are being developed for USA & other markets.

Phase-3 INDs for both the products are approved by USFDA. Sovateltide has received a Special Protocol Assessment (SPA) agreement from the USFDA, providing a clear development and regulatory path in the US. Pharmazz plans to initiate global Phase-3 trials soon for Sovateltide, to support potential approval in US and ex-US markets.

Sun Pharma's investment will be made in tranches, with an initial $10 million and a conversion of SAFE notes due by May 31, 2025, followed by a $15 million tranche by November 30, 2025, subject to conditions. The investment includes options for Sun to negotiate licensing rights for Sovateltide in certain developed markets, while it already holds exclusive rights in select emerging markets.