Sun Pharma to acquire Checkpoint Therapeutics for $355 Million

On Monday, March 10, Sun Pharmaceuticals Industries Ltd. announced its plans to acquire Nasdaq-listed Checkpoint Therapeutics, Inc., which specializes in immunotherapy and targeted oncology.

Sun Pharma will pay $4.1 per share in cash for the acquisition, worth roughly $355 million in total. In addition, each shareholder will receive a contingent value right (CVR) of up to $0.7 per share that will depend on European Union regulatory approval of cosibelimab through centralized procedures or from key markets like Germany, France, Italy, Spain, or the United Kingdom.

The acquisition is expected to close in the second quarter of 2025, after which Sun Pharma will have complete ownership of all outstanding shares of Checkpoint. The cash offer of $4.1 per share represents a premium of 66% to Checkpoint Therapeutics last closing price.

Checkpoint Therapeutics Inc. develops innovative treatments for solid tumor cancer. The company has been allowing a treatment drug UNLOXCYT (cosibelimab-ipdl) for adults with metastatic or locally advanced cSCC not amenable to curative surgery or radiation by the USFDA.

Dilip Shanghvi, Chairman and Managing Director of Sun Pharma, said, "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".

James Oliviero, President and CEO of Checkpoint, said Sun Pharma not only will maximize value for shareholders but will accelerate UNLOXCYT availability in the US, Europe, and other international markets, since their global reach aligns with their commitment to improve the lives of skin cancer patients.

After the acquisition, Fortress will get royalty payments based on future cosibelimab sales, which supersede the previously entitled royalty payments it was set to receive under a royalty agreement with Sun, Checkpoint, and Fortress Biotech, Checkpoint’s controlling shareholder. Sun Pharma's shares on Monday closed 0.43% lower at ?1,607 apiece. This year, the stock has so far declined 14.97%.