Sun Pharma announced Thursday morning that it is acquiring Concert Pharmaceuticals for $576 million.

The Indian-based pharma company will acquire all outstanding shares of the late-stage biotech that has focused on developing the use of deuterium in medicinal chemistry and providing treatments for alopecia areata, an autoimmune disease that results in hair loss.

Per transaction details, Concert shareholders will receive a non-tradeable contingent value right entitling holders to receive up to an additional $3.50 per share of common stock in cash. This is based on Deuruxolitinib, an oral JAK inhibitor for the treatment of alopecia areata, achieving certain time-based net sales milestones.

According to a company press release, Sun Pharma plans to submit a New Drug Application for Deuruxolitinib to the Food and Drug Administration during the first half of 2023. 

Additionally, Sun Pharma stated that it expects the deal to be completed during the first quarter of 2023.

“Sun Pharma is building a global Dermatology and Ophthalmology franchise and aims to be a preferred development and commercial partner in these therapies worldwide. The acquisition of Concert adds a late-stage, potential best-in-class treatment for Alopecia Areata in deuruxolitinib,” Abhay Gandhi, CEO of Sun Pharma North America, said in a statement. “There is a significant unmet need in the Alopecia Areata space and we aim to build on Concert’s commitment to supporting the Alopecia Areata patient community.”

As for Concert, which reported total revenue of just $29,000 in Q3 2022 and a net loss of $90.6 million, the acquisition by Sun Pharma offers the company the support to continue developing therapies for alopecia areata and other dermatological conditions.

“Our mission at Concert has always been to translate innovative science to clinical solutions in order to meaningfully improve patients’ lives,” Concert CEO Roger Tung, Ph.D. said in a statement. “We are proud to see our team’s accomplishment — creating a valuable new drug candidate for a major, underserved disease — appropriately recognized and valued by Sun Pharma as a means to expand their ongoing, international commitment to dermatology. I am confident that this transaction will maximize value for our shareholders and enhance access to deuruxolitinib for patients with Alopecia Areata.”