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Sun Pharmaceutical Industries Ltd has announced an agreement to acquire Nasdaq-listed Checkpoint Therapeutics, an immunotherapy and targeted oncology company, in a move aimed at strengthening its onco-dermatology portfolio. The acquisition will be for an upfront cash payment of 4.10 dollars per share, aggregating up to 355 million dollars, the company said on March 10.
Checkpoint, a commercial-stage company developing treatments for solid tumor cancers, has received US FDA approval for UNLOXCYT (cosibelimab-ipdl) to treat adults with metastatic or locally advanced cutaneous squamous cell carcinoma (cSCC) who are not candidates for curative surgery or radiation.
Strategic boost to Sun Pharma’s oncology portfolio
Dilip Shanghvi, chairman and managing director of Sun Pharma, stated, “Combining UNLOXCYT, an FDA-approved anti-PD-L1 treatment for advanced cSCC, with Sun Pharma’s global presence means patients may soon have access to an important new treatment option.” He added that the acquisition reinforces Sun Pharma’s innovative portfolio in onco-dermatology.
Checkpoint’s president and CEO, James Oliviero, expressed confidence in the transaction, saying, “Sun Pharma is aligned with Checkpoint’s commitment to improving the lives of skin cancer patients. This deal will maximize value for our stockholders and provide accelerated access to UNLOXCYT in the US, Europe, and other markets worldwide.”
Deal structure and financials
Under the agreement, Sun Pharma will acquire all outstanding shares of Checkpoint, with shareholders receiving an upfront cash payment of 4.10 dollars per share—representing a 66 per cent premium to Checkpoint’s closing price on March 7, 2025. They will also be entitled to a contingent value right (CVR) of up to 0.70 dollars per share if cosibelimab secures approval in the EU or key European markets within set deadlines.
Checkpoint, Sun Pharma, and its controlling shareholder Fortress Biotech have also entered into a royalty agreement, under which Fortress will receive royalty payments on future cosibelimab sales instead of its prior royalty rights from Checkpoint’s founding.
The deal, subject to shareholder and regulatory approvals, is expected to close in the second quarter of 2025.
Checkpoint reported 40,000 dollars in revenue and a net loss of 27.3 million dollars for the nine months ending September 2024, with research and development expenses of 19.3 million dollars. As of September 30, 2024, the company had 4.7 million dollars in cash, with accounts payable and accrued expenses totaling 17.6 million dollars.
This acquisition follows Sun Pharma’s 576 million dollar buyout of Concert Pharma in 2023, aligning with its focus on expanding in dermatology and oncology. Sun Pharma, with a market capitalisation of 3.86 lakh crore rupees, has seen its stock remain flat over the past year and decline 15 per cent in 2025.
