Sun Pharma to acquire Checkpoint Therapeutics for $355 million in cash and milestone payments

Sun Pharmaceuticals Industries Ltd. on Monday, March 10, said it will acquire a Nasdaq-listed immunotherapy and targeted oncology company Checkpoint Therapeutics, Inc.Sun Pharma will pay an upfront cash payment of $4.1 per share, which amounts to an aggregate consideration of $355 million. Shareholders will also receive a contingent value right for up to $0.7 per share on achievement of a milestone.
The additional payout is subject to approval of cosibelimab prior to certain deadlines in the European Union, pursuant to centralised approval procedures or in Germany, France, Italy, Spain or the UK.
The transaction is expected to be completed in the second quarter of the 2025 calendar year, following which Sun Pharma will acquire all outstanding shares of Checkpoint.The upfront cash payment of $4.1 per share of common stock represents a premium of approximately 66% to Checkpoint’s last closing price.

Checkpoint focuses on developing novel treatments for patients with solid tumor cancers. It has received approval from the US Food and Drug Administration (USFDA) for UNLOXCYT (cosibelimab-ipdl) for the treatment of adults with metastatic cutaneous squamous cell carcinoma, or locally advanced cSCC who are not candidates for curative surgery or curative radiation, the company said in a stock exchange filing.”Combining UNLOXYCT, 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,” Dilip Shanghvi, the chairman and managing director of Sun Pharma, said.

James Oliviero, the president and CEO of Checkpoint said Sun Pharma is aligned with his company’s commitment to improving the lives of skin cancer patients and he believes the transaction will maximise value for its stockholders and provide accelerated access to UNLOXYCT in the US, Europe and other markets across the world.

Also, Checkpoint, Sun Pharma and Fortress Biotech, which is the former’s controlling stockholder, have entered into a royalty agreement. After the transaction closes, Fortress will be entitled to receive royalty payments based on future sales of cosibelimab during a specified term, in lieu of royalty rights that were granted to it with its founding of Checkpoint.

Sun Pharma shares ended the previous trade session 0.43% lower at ₹1,607 apiece. The stock has declined 14.97% this year, so far.

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