Sun Pharma's $355 Million Acquisition of Nasdaq-Listed Checkpoint Therapeutics Boosts Shares

In a significant move to enhance its oncology offerings, Sun Pharmaceutical Industries Ltd. has announced its acquisition of Checkpoint Therapeutics, Inc., a prominent player in immunotherapy and targeted cancer treatment. This strategic $355 million cash deal is set to significantly strengthen Sun Pharma’s portfolio in onco-dermatology, particularly with the addition of Checkpoint’s newly FDA-approved drug, UNLOXCYT (cosibelimab-ipdl). The transaction is anticipated to conclude in the second quarter of 2025, signaling a bold step forward for Sun Pharma in the competitive oncology market.

Acquisition Highlights

Total Value: $355 million
Upfront Payment: $4.1 per share, a 66% premium over Checkpoint’s last closing price.
Contingent Value Right: Up to $0.7 per share, contingent on European regulatory approval of cosibelimab.
Expected Closure: Second quarter of 2025.
Market Reaction: Sun Pharma’s shares increased by 2%, while Checkpoint’s rose by 3.78% on Nasdaq following the announcement.

Upon finalization of the deal, Sun Pharma will acquire all outstanding shares of Checkpoint Therapeutics. However, the transaction is still subject to stockholder approval and necessary regulatory clearances. Checkpoint Therapeutics has been at the forefront of developing innovative therapies for solid tumor cancers, with UNLOXCYT recently gaining FDA approval for adult patients with metastatic or locally advanced cutaneous squamous cell carcinoma (cSCC) who aren’t suitable for curative surgery or radiation.

Strategic Advantages for Sun Pharma

This acquisition not only adds UNLOXCYT to Sun Pharma’s product lineup but also establishes it as the first FDA-approved anti-PD-L1 treatment specifically for advanced cSCC. With this new addition, Sun Pharma aims to enhance patient access to this vital treatment on a global scale.

Dilip Shanghvi, Chairman and Managing Director of Sun Pharma, highlighted the strategic alignment of this acquisition. He stated, “The integration of UNLOXCYT—an FDA-approved anti-PD-L1 therapy—into our portfolio means a promising new treatment option for patients battling cSCC. This move further strengthens our innovative onco-derm therapy solutions.”

Echoing this sentiment, James Oliviero, President and CEO of Checkpoint, emphasized Sun Pharma’s dedication to broadening access to UNLOXCYT across the U.S., Europe, and additional international markets.

Market Response

In the wake of the acquisition announcement, Checkpoint Therapeutics experienced a notable 3.78% increase, closing at $2.47 on Nasdaq. Simultaneously, shares of Sun Pharma saw a boost of 2%, reaching a peak of ₹1,643.20 on the BSE on March 10.

The acquisition not only signifies a strategic growth opportunity for Sun Pharma but also promises to improve treatment options for patients facing challenging cancer diagnoses. With both companies poised for future success, stakeholders are keenly observing the developments in this evolving landscape.