Sun Pharmaceutical Industries Limited (Sun Pharma) has announced a definitive agreement to acquire Checkpoint Therapeutics, Inc., a U.S.-based immunotherapy and targeted oncology company, for a total consideration of up to $355 million.
This acquisition marks a significant step in Sun Pharma’s expansion within the oncology and immunotherapy sector.
In 2024, the company entered into a licensing agreement with Philogen for its anti-cancer drug Fibromun. The latest deal will further enhance Sun Pharma’s global portfolio by adding UNLOXCYT™ (cosibelimab-ipdl), an FDA-approved treatment for metastatic or locally advanced cutaneous squamous cell carcinoma (cSCC).
Dilip Shanghvi, Chairman & Managing Director of Sun Pharma, emphasized the significance of this acquisition:
“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. This acquisition further bolsters our innovative portfolio in onco-derm therapy.”
Under the terms of the agreement, Sun Pharma will acquire all outstanding shares of Checkpoint at an upfront cash payment of $4.10 per share, representing a 66% premium to Checkpoint’s last closing price before the announcement. Additionally, Checkpoint’s shareholders will receive a contingent value right (CVR) of up to $0.70 per share, payable if cosibelimab secures approval in key European markets within specified timelines.
The transaction is subject to approval by Checkpoint’s stockholders and customary regulatory clearances. Checkpoint’s Board of Directors and a Special Committee of independent directors have unanimously approved the deal. The majority stakeholder, Fortress Biotech, has also agreed to vote in favor of the transaction.
As part of the acquisition, Fortress Biotech will receive royalty payments based on future sales of cosibelimab. This agreement replaces Fortress’ previous royalty rights from Checkpoint’s founding.
cSCC is the second-most common skin cancer in the United States, with approximately 1.8 million new cases annually. While most cases are treatable with surgery, 40,000 cases progress to advanced stages each year, leading to an estimated 15,000 deaths annually. UNLOXCYT™, as the only FDA-approved anti-PD-L1 therapy for advanced cSCC, presents a crucial treatment option for patients who are not candidates for curative surgery or radiation.
James Oliviero, CEO of Checkpoint, expressed optimism about the deal:
“I am proud of our team’s dedication in bringing UNLOXCYT to market. Sun Pharma’s extensive global reach will accelerate patient access to this important treatment, benefiting cSCC patients worldwide.”
The acquisition is anticipated to close in the second quarter of 2025, pending regulatory and shareholder approvals. Following the announcement, Sun Pharma’s stock saw a 1.2% increase in early trading.
