Sun Pharmaceutical Industries announced it has acquired Concert Pharmaceuticals for about $576 million in equity value, according to a company news release.

Concert’s lead product candidate is deuruxolitinib, an oral inhibitor of Janus kinases JAK1 and JAK2 for the treatment of alopecia areata, which is in late-stage development. Concert has completed the evaluation of the efficacy and safety of deuruxolitinib in adult patients with moderate to severe alopecia areata in its THRIVE-AA Phase 3 clinical program. Two open label, long-term extension studies are ongoing in North America and Europe. Sun Pharma said it plans to follow Concert’s plan to submit a new drug application (NDA) to the FDA in the first half 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 North America, Sun Pharma, said in a company news release. “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. We are well-positioned to successfully bring this product to market globally. I look forward to welcoming the exceptionally talented Concert team who have worked tirelessly to develop the product to bring it to market.”

Under terms of the deal, Sun Pharma will acquire all outstanding shares of Concert through a tender offer for an upfront payment of $8 per share of common stock in cash, plus up to an additional $3.50 per share of common stock in cash, payable upon deuruxolitinib achieving certain net sales milestones. The transaction was approved by the Boards of Directors of both companies.

The transaction is expected to be completed in the first quarter of 2023.