Sun Pharmaceutical Industries Limited has announced the acquisition of Checkpoint Therapeutics, Inc. (Nasdaq: CKPT), a commercial-stage immunotherapy and targeted oncology company, for $355 million. This strategic move strengthens Sun Pharma’s presence in the oncology sector, enhancing its portfolio with cutting-edge cancer treatments.
Key Highlights of the Acquisition
- Acquisition Price: Sun Pharma will purchase all outstanding shares of Checkpoint for $4.10 per share in cash, plus a potential additional $0.70 per share based on regulatory approvals in Europe.
- Premium Offer: The upfront cash offer represents a 66% premium over Checkpoint’s closing share price on March 7, 2025.
- Regulatory Approval Contingency: The additional contingent value rights (CVRs) are linked to the approval of cosibelimab in the European Union or key European markets.
Impact on Sun Pharma & Oncology Market
Checkpoint has received FDA approval for UNLOXCYT™ (cosibelimab-ipdl) for the treatment of metastatic and locally advanced cutaneous squamous cell carcinoma (cSCC). This acquisition aligns with Sun Pharma’s commitment to expanding its oncology pipeline and global market footprint.
Transaction Details & Approval Process
The transaction is expected to close in Q2 2025, subject to regulatory and shareholder approvals. Fortress Biotech, Inc. (Nasdaq: FBIO), Checkpoint’s majority stakeholder, has agreed to vote in favor of the deal. Additionally, a special committee of Checkpoint’s independent directors has reviewed and unanimously approved the acquisition, ensuring it maximizes shareholder value.
Checkpoint’s Financial Snapshot
For the nine-month period ending September 2024, Checkpoint reported revenue of $0.04 million and a net loss of $27.3 million. R&D expenses stood at $19.3 million, with a cash balance of $4.7 million as of September 30, 2024.
