Sun Pharmaceutical Industries has signed a definitive agreement to buy all outstanding shares of Concert Pharmaceuticals in a deal valued at $576m.

Under the deal, the company will buy all shares of Concert common stock through a tender offer for $8.00 per share in cash upfront payment.

Additionally, the stockholders of Concert will receive a contingent value right (CVR), based on the net sales milestones of deuruxolitinib, entitling them to up to $3.50 per share of common stock in cash.

Concert’s patent portfolio includes oral Janus kinases JAK1/2 inhibitor, deuruxolitinib, to treat Alopecia Areata, an autoimmune dermatological disease.

Deuruxolitinib’s safety and efficacy were assessed in moderate to severe Alopecia Areata adult patients in the THRIVE-AA Phase III clinical programme.

It is currently being evaluated in two open-label, long-term extension trials in North America and Europe.

Sun Pharma stated that it would follow Concert’s plan to seek approval from the US Food and Drug Administration (FDA) for its new drug application in the first half of the year.

The company also noted that the deal would strengthen its global dermatology franchise by adding a late-stage product in an area with significant unmet needs.

Sun Pharma North America CEO Abhay Gandhi said: “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.

“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.”

The transaction, subject to regulatory approvals and other customary closing conditions, is anticipated to be concluded in the first quarter of this year.