Sun Pharma subsidiary signs licensing agreement with biopharma company Aclaris Therapeutics

Sun Pharmaceutical Industries Inc., a subsidiary of India's largest drug manufacturer Sun Pharma, has entered into a licensing agreement with Aclaris Therapeutics Inc., an exchange filing said.

As per the licensing agreement, Aclaris has granted exclusive rights to Sun Pharma under certain patents for the use of deuruxolitinib, Sun Pharma's JAK inhibitor, or other isotopic forms of ruxolitinib, to treat alopecia areata (AA) or androgenetic alopecia (AGA).

The agreement includes an upfront payment of $15 million, regulatory and commercial milestones and royalties.

Aclaris Therapeutics Inc. is a clinical-stage biopharmaceutical company focused on developing novel drugs for immuno-inflammatory diseases.

Deuruxolitinib, a potential best-in-class JAK inhibitor became part of Sun Pharma's portfolio when it completed the acquisition of Concert Pharma earlier this year.

Alopecia Areata is an autoimmune disease in which the immune system attacks hair follicles, resulting in partial or complete loss of hair on the scalp and the body. The disease may affect up to 2.5% of the United States and the global population during their lifetime. The scalp is the most affected area but any hair-bearing site can be affected alone or together with the scalp.

Currently, there are limited options available for the treatment of the same.

Androgenetic Alopecia is a genetically predetermined disorder due to an excessive response to androgens. This condition affects up to 50% of males and females and is characterised by progressive loss of terminal hair of the scalp any time after puberty, according to the National Institute of Health.

For the September quarter, Sun Pharma reported 11% year-on-year revenue growth, while US generic sales at $420 million were better than estimates of $410 million. Specialty sales at $240 million were in line with estimates.

In a post-earnings interaction with CNBC-TV18, Sun Pharma Group CFO CS Muralidharan said that the company is excited about its upcoming speciality pipeline and that the speciality sales are factored into the company's financial year 2024 guidance. However, he did not share any specific margin guidance.

Shares of Sun Pharma ended nearly a percent higher on Tuesday at ₹1,242, which is a record high. The stock is up 25% so far in 2023.