Sun Pharma to Acquire Checkpoint Therapeutics

Core Viewpoint - Sun Pharmaceutical Industries Limited has announced an agreement to acquire Checkpoint Therapeutics, which includes the FDA-approved anti-PD-L1 treatment UNLOXCYT™ for metastatic or locally advanced cutaneous squamous cell carcinoma (cSCC) [1][2][3] Company Overview - Sun Pharma is a leading specialty generics company with a strong presence in dermatology, ophthalmology, and onco-dermatology, accounting for over 18% of its sales [14] - Checkpoint is a commercial-stage immunotherapy and targeted oncology company focused on developing treatments for solid tumor cancers, with UNLOXCYT™ being its key FDA-approved product [2][16] Transaction Details - The acquisition involves an upfront cash payment of $4.10 per share, totaling up to$355 million, representing a 66% premium over Checkpoint's closing share price prior to the announcement [4][5] - Checkpoint stockholders will also receive a contingent value right (CVR) for up to an additional $0.70 per share based on future regulatory approvals [4][5] - The transaction is expected to close in the second calendar quarter of 2025, subject to customary closing conditions and stockholder approvals [9] Strategic Rationale - The acquisition aims to leverage Sun Pharma's global presence to enhance patient access to UNLOXCYT™, providing a new treatment option for cSCC patients [1][3] - The Checkpoint board, through a special committee, determined that the cash consideration and potential upside from the CVRs offered superior value compared to other strategic alternatives [8] Financial Performance - For the nine-month period ending September 2024, Checkpoint reported revenue of$0.04 million and a net loss of 27.3 million, with R&D expenses of 19.3 million [10]