Sun Pharmaceutical Industries Ltd, India’s largest pharmaceutical company, has announced the acquisition of Checkpoint Therapeutics, a Nasdaq-listed immunotherapy and oncology company, for $355 million. This move strengthens Sun Pharma’s oncology franchise and adds UNLOXCYT™ (cosibelimab-ipdl), an FDA-approved anti-PD-L1 treatment, to its portfolio.

Deal Structure and Financial Details

• Sun Pharma will acquire 100% of Checkpoint’s shares at $4.10 per share in cash, representing a 66% premium over Checkpoint’s last closing price.
• Checkpoint shareholders will also receive a contingent value right (CVR) of up to $0.70 per share, based on regulatory approvals in Europe.
• The transaction is expected to close by Q2 2025, subject to Checkpoint shareholder approval and regulatory clearances.

Strategic Importance of the Acquisition

This acquisition significantly boosts Sun Pharma’s presence in the global oncology market, particularly in onco-dermatology.

• UNLOXCYT™ (cosibelimab-ipdl) is the first and only FDA-approved anti-PD-L1 treatment for metastatic cutaneous squamous cell carcinoma (cSCC).
• Sun Pharma aims to leverage its global presence to accelerate patient access to UNLOXCYT™ in the US, Europe, and other key markets.

Dilip Shanghvi, Chairman and Managing Director of Sun Pharma, stated:

“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.”

Checkpoint’s Financial and Operational Background

• Checkpoint Therapeutics is a commercial-stage immunotherapy company focused on developing targeted oncology treatments.
• The company reported a net loss of $27.3 million for the nine-month period ending September 2024, with R&D expenses of $19.3 million.
• As of September 30, 2024, Checkpoint had a cash balance of $4.7 million.

Approval Process and Market Potential

• UNLOXCYT™ is already FDA-approved in the US, and Sun Pharma plans to pursue regulatory approvals in Europe and other markets.
• The cutaneous squamous cell carcinoma (cSCC) market represents a large unmet medical need, with 1.8 million new cases in the US annually.
• The acquisition aligns with Sun Pharma’s strategy of expanding its specialty pharmaceutical business globally.

Conclusion

The Sun Pharma-Checkpoint deal marks a major expansion into the oncology space, reinforcing Sun Pharma’s commitment to bringing advanced cancer treatments to global markets. The acquisition is expected to enhance Sun Pharma’s specialty product portfolio while providing Checkpoint shareholders with an attractive exit strategy.

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