What happened

If all goes according to plan, Concert Pharmaceuticals (CNCE) will soon cease to be an independent company. The biotech signed a deal to be acquired by a peer; as a result, its share price leaped more than 17% higher on the week, according to data compiled by S&P Global Market Intelligence.

So what

That peer is India-based Sun Pharmaceutical Industries. On Thursday in a joint press release, Sun and Concert announced that they have agreed for the former to purchase the latter in a deal worth at least $576 million.

Specifically, Sun is to make a payment of $8 per Concert share in cash for the acquisition. The two companies didn't hesitate to point out that this is roughly 33% higher than the latter's 30-day-trailing weighted average share price as of Wednesday, Jan. 18.

Concert's shareholders will also effectively be paid an additional $3.50 per share if and when the biotech company's leading pipeline medication, deuruxolitinib, meets certain sales milestones. This is a treatment for alopecia areata, a form of baldness.

The deal has been approved by the boards of directors of both companies, Sun and Concert said in their press release. It is expected to close at some point during this calendar quarter.

Now what

In the press release, Sun quoted its CEO of North America Abhay Gandhi as saying that "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," he added.