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Sun Pharma to Acquire 16.33% Stake of Surgimatix for $3.05 Mn

Written by : Nikita Saha

February 21, 2024

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Per the deal, Sun Pharma will have the option to receive warrants equivalent to 20% of the shares purchased, exercisable at $4.867 per share.

Global Pharmaceutical player, Sun Pharma has set its foot to acquire a 16.33% stake in Michigan-based Surgimatix Inc. for $3.05 million. The drugmaker revealed on February 20 through a disclosure to the exchanges.

Surgimatix is engaged in developing a proprietary soft tissue fixation device for laparoscopic hernia repair and other minimally invasive surgeries. The company is yet to commence its commercial operation.

By investing in Surgimatix, Sun Pharma aims to enhance its portfolio and contribute to advancements in healthcare technology. The transaction is expected to be completed by the end of February 2024, subject to the fulfillment of certain conditions.

What the $3.05 Mn Deal Entails

Per the deal, Sun Pharma will have the option to receive warrants equivalent to 20% of the shares purchased, exercisable at $4.867 per share.

This strategic move to acquire Illinois-headquartered Surgimati aligns with Sun Pharma’s goal to expand its presence in the medical device sector.

Founded in 2007, Surgimatix is a privately held medical technology company headquartered in Elk Grove Village, Illinois, USA. The company’s mission is to commercialize innovative products that enhance clinical outcomes while improving efficiency, patient comfort, and safety.

Sun Pharma’s Series of Acquisitions

Days back, the Indian drugmaker acquired Israel’s Taro Pharma in a deal worth $347.73 million.

As per the merger deal, Sun Pharma agreed to acquire all outstanding ordinary shares of Taro Pharmaceutical which were not earlier owned by the company or its affiliates for $347.73 million, which is approximately INR 2,891.76 Cr, in cash.

The acquisition price was $43 per share in cash without interest for 8,086,818 shares, which represent 21.52% of the total outstanding Taro shares.

In December, Sun Pharmaceutical agreed to acquire a 16.7% stake in the US-based Lyndra Therapeutics for $30 million. Lyndra Therapeutics Inc. develops novel delivery technology for long-acting oral (LAO) therapies.

This strategic investment seeks to support the development of advanced pharmaceutical delivery technologies and get access to the technology for certain molecules and territories.

In September, Sun Pharma inked an agreement with US-based Pharmazz on the cerebral ischemic stroke drug Soveteltide under the brand name Tyvalzi. Under this agreement, Sun Pharma granted the rights to market Sovateltide in India under the brand name Tyvalzi (Sovateltide). Moreover, USA's Pharmazz is expected to receive upfront and milestone payments, including royalties as a part of the agreement.

With this initiative, the Indian multinational pharmaceutical company aims to provide high-quality, affordable medicines trusted by healthcare professionals and patients.

Founded in 1983, Sun Pharmaceutical Industries Limited, also known as Sun Pharma is an Indian multinational pharmaceutical company that manufactures and sells pharmaceutical formulations and active pharmaceutical ingredients (APIs) in more than 100 countries across the globe. The company aims to promote excellence through strategic innovation, supported by strong R&D capabilities.

The market capitalization of Sun Pharmaceutical Industries surpassed the INR 3 Lakh Cr mark in December 2023.

On December 13, 2023, Sun Pharma's specialty product 'Ilumetri' was included in category Bh of China's national reimbursement drug list, which was then officially implemented from January 1, 2024.

Further, Sun Pharma beat the Street estimates with a 16.5% rise in consolidated net profit of INR 2,524 Cr for the December quarter of the fiscal as against INR 2,166 Cr recorded a year ago.

At 10:55 am on February 21, shares of Sun Pharma were marginally up 0.21% at INR 1,541.90 a piece on NSE.


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