Shares of Sun Pharmaceutical Industries Limited saw an upward movement of up to 1.99% on the NSE, touching ₹1,641.45 apiece on March 10, 2025, following the announcement of its acquisition agreement with Checkpoint Therapeutics Inc.
Many analysts noted that the move reflects growing investor confidence in the company's global expansion strategy. For those seeking to buy shares online, this acquisition could be a signal of Sun Pharma's evolving product portfolio in oncology.
Checkpoint brings FDA-approved cancer drug to Sun's portfolio
Checkpoint Therapeutics, listed on Nasdaq, is a commercial-stage immunotherapy and targeted oncology firm. The company has secured US FDA approval for its flagship drug, UNLOXCYT™ (cosibelimab-ipdl), designed for adults with metastatic or locally advanced cutaneous squamous cell carcinoma (cSCC) who are not eligible for curative surgery or radiation.
Sun Pharma's Chairman and Managing Director, Dilip Shanghvi, stated that combining UNLOXCYT with Sun's global reach could enhance treatment accessibility for cSCC patients. He added that the deal would further strengthen the company's innovation-driven onco-dermatology segment.
Checkpoint CEO sees value in strategic partnership
James Oliviero, President and CEO of Checkpoint, expressed enthusiasm over the collaboration, calling it a natural progression in delivering differentiated immunotherapy solutions. He highlighted Sun Pharma's global footprint and shared optimism about accelerated access to the drug in international markets, including Europe, the US, and beyond.
Oliviero added that the transaction aims to maximise shareholder value while expanding reach to patients in need of innovative therapies.
Transaction details: What investors should know
As per the agreement, Sun Pharma will acquire all outstanding shares of Checkpoint Therapeutics. Each Checkpoint shareholder will receive an upfront cash payment of $4.10 per share. Additionally, they will receive a non-transferable contingent value right of up to $0.70 per share if cosibelimab receives timely approval in the European Union or select European countries, including Germany, France, Italy, Spain, or the UK.
The upfront offer represents a 66% premium over Checkpoint's closing share price as of March 7, 2025. The transaction is expected to close in the second quarter of 2025, subject to regulatory and shareholder approvals.
A financial snapshot of Checkpoint
For the nine-month period ending September 2024, Checkpoint reported a revenue of $0.04 million and a net loss of $27.3 million. The company also incurred research and development expenses amounting to $19.3 million. By the end of September, its cash reserves stood at $4.7 million, with total outstanding liabilities and related party expenses reaching approximately $17.6 million.
Fortress, which holds majority voting power in Checkpoint, has agreed to vote in favour of the acquisition, thereby facilitating the transaction process.
Analysts' view and market outlook
Analysts believe this acquisition aligns with Sun Pharma's ongoing efforts to expand its presence in high-growth therapeutic segments. As of 11 AM on March 10, 2025, the shares of Sun Pharmaceutical Industries were trading at ₹1,614.98 per share. The move is seen as a strategic step towards building a stronger global oncology pipeline. Investors looking to buy shares online may consider this development as a sign of the company's long-term prospects.
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