Sun Pharmaceutical Industries Ltd. on Friday 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 is developing two advanced drug candidates—Sovateltide for acute cerebral ischemic stroke and Centhaquine for hypovolemic shock. Both products are already approved in India and marketed through local partners under the brands Tyvalzi and Lyfaquin, respectively.

The US FDA has cleared Phase-3 trials for both drugs, with Sovateltide also receiving a Special Protocol Assessment (SPA), setting the stage for global development.

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.

This strategic move comes as Sun Pharma looks to expand its specialty portfolio. Group CFO CS Muralidharan told CNBC-TV18 the company is open to acquisitions across oncology, dermatology, and ophthalmology, stating, “We have sufficient resources on the balance sheet… size is not a constraint.”

Backed by $3 billion in cash, the company has made two notable acquisitions in recent years—Concert Pharmaceuticals (Leqselvi) and Checkpoint Therapeutics (Unloxcyt). It plans to spend $100 million in FY26 on launching these two products in the US.

The acquisition update follows Sun Pharma’s Q4FY25 results, where revenue rose 8.1% YoY to ₹12,958.8 crore and EBITDA grew 22.4%. However, net profit declined 19% to ₹2,153.9 crore, missing analyst expectations.