Sun Pharma to Invest $25 Million in Pharmazz, Ups Stake to 22.7%

Sun Pharmaceutical Industries Ltd announced on Friday that it will invest up to USD 25 million in US-based biopharmaceutical firm Pharmazz Inc, increasing its stake in the company to 22.7% on a fully diluted basis.

In a regulatory filing, the Indian drug major said the investment agreement will also trigger the conversion of its earlier investment made through a SAFE (Simple Agreement for Future Equity), effectively consolidating its expanded shareholding in Pharmazz.

The deal is structured in two tranches. The first includes a USD 10 million investment and the conversion of USD 7.5 million from the second tranche of the prior SAFE agreement, both scheduled for completion on or before May 31, 2025. The second tranche—an additional USD 15 million—will be invested on or before November 30, 2025, or on a mutually agreed date.

Pharmazz Inc focuses on developing novel therapeutics for critical care conditions, including treatments for hypovolemic shock and cerebral ischemia. The increased investment underscores Sun Pharma’s strategic interest in bolstering its presence in innovative and emerging therapies.

This move is part of Sun Pharma’s broader push to expand its global research collaborations and product pipeline, especially in high-value, specialty drug segments.