Sun Pharmaceutical Industries Ltd. on Monday announced it will acquire US-based cancer treatment provider Checkpoint Therapeutics, Inc. for up to $355 million or Rs 3,084 crore.
Checkpoint is a Massachusetts-headquartered immunotherapy and targeted oncology company. It has received approval from the US Food & Drug Administration for UNLOXCYT (cosibelimab-ipdl) for the treatment of adults with metastatic cutaneous squamous cell carcinoma (cSCC) or locally advanced cSCC who are not candidates for curative surgery or curative radiation.
The Indian drugmaker will make an upfront cash payment of $4.10 per share of common stock, according to a press statement. Nasdaq-listed Checkpoint closed at $2.47 on Friday.
Shareholders will also receive a contingent value right for up to $0.70 per share, if cosibelimab is approved prior to certain deadlines in the European Union pursuant to the centralised approval procedure or in Germany, France, Italy, Spain or the United Kingdom.
The transaction is expected to be completed in the June quarter of 2025 after approval from shareholders and regulators.
Checkpoint, Sun Pharma and Checkpoint’s controlling stockholder Fortress Biotech, Inc. have entered into a royalty agreement. Under it, following the closing of the transaction, Fortress would be entitled to receive royalty payments based on future sales of cosibelimab, during a specified term. This is in lieu of royalty rights that were granted to Fortress in connection with its founding of Checkpoint.
For the nine-month period ending September 2024, Checkpoint reported $0.04 million in revenue and a net loss of $27.3 million. The R&D expense for the nine-month period was $19.3 million.
The deal will maximise value for Checkpoint stockholders and provide accelerated access to UNLOXCYT in the US, Europe and other markets worldwide, said President and Chief Executive Officer James Oliviero.
“Combining UNLOXCYT, an FDA-approved anti-PD-L1 treatment for advanced cutaneous squamous cell carcinoma, with Sun Pharma’s global presence means patients with cSCC may soon have access to an important, new treatment option. The acquisition further bolsters our innovative portfolio in onco-derm therapy,” Dilip Shanghvi, chairman and managing director of Sun Pharma, said.
Shares of the specialty generics company closed 0.26% lower at Rs 1,609.9 apiece on Friday, compared to a flat benchmark BSE Sensex.
. Read more on Business by NDTV Profit.Sun Pharma will make an upfront cash payment of $4.10 per share of common stock. Read MoreBusiness, Notifications
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