Sun Pharma to buy US oncology firm Checkpoint for $355 mn

Sun Pharmaceutical Industries Ltd has announced the acquisition of US-based immunotherapy and oncology firm Checkpoint Therapeutics Inc. for about $355 million.

With this acquisition, Sun Pharma said it plans to expand its specialty therapy portfolio, particularly in oncology and dermatology.

Sun Pharma will buy Checkpoint’s shares for $4.10 each, or a 66% premium, with shareholders also likely to get up to $0.70 extra per share if Checkpoint’s cancer drug, UNLOXCYT, gets approved in the EU.

Checkpoint, a Nasdaq-listed firm that develops cancer treatments, recently got US regulator FDA’s nod for UNLOXCYT, a drug for adults with advanced skin cancer (advanced cutaneous squamous cell carcinoma, or cSCC) who cannot have surgery or radiation.

“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,” said Dilip Shanghvi, chairman of Sun Pharma.

Checkpoint chief executive officer James Oliviero said that the acquisition is in line with the company’s mission to improve treatment options for skin cancer patients.

“Sun Pharma is aligned with Checkpoint’s commitment to improving the lives of skin cancer patients, and I believe this transaction will maximize value for our stockholders and provide accelerated access to UNLOXCYT in the US, Europe and other markets,” he said.

The acquisition is likely to be finalized by June, after which Sun Pharma will acquire all outstanding shares of Checkpoint.

Sun Pharma has also entered into a royalty agreement with Fortress Biotech, Inc., Checkpoint’s controlling stockholder.

Under this agreement, Fortress will receive royalty payments based on future sales of cosibelimab in lieu of previously granted royalty rights.