New Delhi: Sun Pharmaceutical Industries on Monday said it will acquire immunotherapy and targeted oncology firm Checkpoint Therapeutics, Inc for up to USD 355 million.
As per the pact inked by the companies, Sun Pharma will pay upfront USD 4.10 per share of common stock, representing aggregate upfront consideration of up to USD 355 million, Sun Pharma said in a statement.
Checkpoint stockholders will also receive a contingent value right for up to USD 0.70 per share on achievement of a milestone.
Checkpoint is a Nasdaq-listed commercial-stage company focused on developing novel treatments for patients with solid tumor cancers.
“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,” Sun Pharma MD Dilip Shanghvi said.
The transaction is expected to be completed in the second calendar quarter of 2025.
Checkpoint has received approval from the US Food & Drug Administration (FDA) 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.
James Oliviero, President and Chief Executive Officer of Checkpoint said Sun Pharma is aligned with the company’s commitment to improving the lives of skin cancer patients.
“I believe this transaction will maximise value for our stockholders and provide accelerated access to UNLOXCYT in the US, Europe and other markets worldwide,” he added.
The Mumbai-based drug firm said that upon completion of the transaction, it will acquire all outstanding shares of Checkpoint.
The Checkpoint stockholders will receive, for each share of common stock they hold, an upfront cash payment of USD 4.10, without interest, and a non-transferable contingent value right (CVR) entitling the stockholder to receive up to an additional USD 0.70 in cash, without interest, if cosibelimab is approved prior to certain deadlines in the European Union pursuant to the centralised approval, it added.
The upfront cash payment of USD 4.10 per share of common stock represents a premium of around 66 per cent to Checkpoint’s closing share price on March 7, 2025, the last trading day prior to today’s announcement.
For the nine-month period ending September 2024, Checkpoint reported USD 0.04 million in revenue and a net loss of USD 27.3 million.
Sun Pharma said it has also entered into a royalty agreement with Fortress Biotech, Inc, Checkpoint’s controlling stockholder.
As per the pact, Fortress would 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 Fortress in connection with its founding of Checkpoint.
Sun Pharma shares were trading 0.18 per cent up at Rs 1,612.75 apiece on BSE
