Mumbai: A subsidiary of Sun Pharmaceutical Industries Ltd has acquired 14.6% stake in US-based scPharmaceuticals Inc. for $13 million in cash, the Indian company said in a stock exchange filing on Friday.
scPharmaceuticals is developing a portfolio of pharmaceutical products for subcutaneous (under the skin) delivery. The company’s lead products are the first subcutaneous formulations of furosemide, a diuretic used to treat heart failure and ceftriaxone, an antibiotic drug.
scPharmaceuticals’s proprietary and innovative products will be administered subcutaneously through the sc2Wear Infusor. This avoids material risks and costs associated with current delivery options.
scPharmaceuticals was incorporated in 2014 and has not reported sales figures in the last two years.
A Sun Pharma spokesperson declined to comment on the rationale of the stake purchase and on the opportunities that the two lead products of scPharmaceuticals present for India’s largest drug maker.
Sun Pharma is enhancing its portfolio of complex generics and specialty products as the generic drugs business slows in the face of pricing pressure and increased competition in the US, and regulatory issues at its manufacturing plants.
“The company has good cash reserves and so it will continue to make such acquisition of assets that can turn into good opportunities going ahead. This is a small acquisition but is in line with its strategy to build a pipeline of specialty and complex products,” said an analyst, who did not wish to be named.
In the six months ended September 2016, Sun Pharma reported sales of Rs15,771 crore, up 18% from the same period a year ago.
Shares of Sun Pharma rose 2.45% to Rs624.15 on the BSE, while the benchmark Sensex index was down 0.33% at 25,893.14 points in intra-day trading.