Sun Pharma Announces $355 Million Checkpoint Therapeutics Acquisition

Sun Pharmaceutical Industries has announced the acquisition of Checkpoint Therapeutics, a US-based immunotherapy and targeted oncology company, for $355 million. The deal will be executed through an upfront cash payment of $4.10 per common share, a premium of approximately 66% to Checkpoint’s last closing price on March 7, 2025. The transaction is to close in the second quarter of 2025, subject to regulatory and shareholder approvals.

As of 11:07 AM on March 10, 2025, Sun Pharmaceutical Industries Ltd was trading at ₹1,612.25, up ₹2.95 (0.18%)for the day, but down 12.20% over the past six months, while gaining 1.14% over the past year.

Addition to Oncology Portfolio

The acquisition will bring Checkpoint’s FDA-approved skin cancer treatment, UNLOXCYT (cosibelimab-ipdl), under Sun Pharma’s portfolio. The drug is approved for treating metastatic or locally advanced cutaneous squamous cell carcinoma (cSCC) in adults who are not candidates for curative surgery or radiation.

Contingent Payments and Royalty Agreement

As per the filing, Checkpoint shareholders may receive an additional $0.70 per share if cosibelimab secures approval in European markets, including Germany, France, Italy, Spain, or the UK, within specified deadlines. Fortress Biotech, Checkpoint’s controlling shareholder, will receive royalty payments on future sales of cosibelimab after the transaction closes.

Financials

For the nine months ending September 2024, Checkpoint reported revenue of $0.04 million, a net loss of $27.3 million, and R&D expenses of $19.3 million. Sun Pharma, India’s largest pharmaceutical company by revenue, has been expanding its specialty pharma segment, including oncology and dermatology. In 2023, it acquired Concert Pharmaceuticals for $576 million, adding to its dermatology portfolio.

Conclusion

The company’s current market capitalisation stands at ₹3.86 lakh crore as on 10 March, 2025. The filing suggests that the acquisition aligns with its ongoing expansion in specialty pharmaceuticals, particularly in the US market.

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