New Delhi: Sun Pharmaceutical Industries Ltd has announced the acquisition of Checkpoint Therapeutics, a Nasdaq-listed company specializing in immunotherapy and targeted oncology treatments. The move strengthens Sun Pharma’s presence in the onco-dermatology sector by adding Checkpoint’s FDA-approved drug, UNLOXCYT (cosibelimab-ipdl), to its portfolio.
Acquisition Details
Sun Pharma will acquire all outstanding shares of Checkpoint, offering stockholders $4.10 per share in cash, representing a 66% premium on the last closing price. Additionally, stockholders may receive up to $0.70 per share if UNLOXCYT secures approval in key European markets within set deadlines.
The transaction is backed by Fortress, Checkpoint’s majority shareholder, which has agreed to vote in favor of the deal. Legal advisors for Sun Pharma include Barack Ferrazzano Kirschbaum & Nagelberg LLP and Allen Overy Shearman Sterling US LLP, while Locust Walk serves as Checkpoint’s financial advisor.
Impact on Oncology Market
Checkpoint’s UNLOXCYT is an anti-PD-L1 treatment for metastatic and locally advanced cutaneous squamous cell carcinoma (cSCC), the second-most common skin cancer in the U.S. with an estimated 1.8 million cases annually. Sun Pharma’s global distribution network could improve patient access to this treatment.
James Oliviero, CEO of Checkpoint, said the acquisition will accelerate UNLOXCYT’s reach beyond the U.S. to European and other international markets.
Financial Position of Checkpoint
For the nine months ending September 2024, Checkpoint reported $0.04 million in revenue and a net loss of $27.3 million. Its R&D expenses stood at $19.3 million, while its cash reserves totaled $4.7 million as of September 30, 2024. The company also reported outstanding liabilities, including $15.6 million in accounts payable.
The acquisition aligns with Sun Pharma’s broader strategy of strengthening its oncology and dermatology pipeline through targeted acquisitions.
