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Sun Pharmaceutical Industries has agreed to acquire Checkpoint Therapeutics, a company specialising in immunotherapy and targeted oncology treatments, for an aggregate upfront price of $355m.
The acquisition is set to add Checkpoint's US Food and Drug Administration (FDA)-approved Unloxcyt (cosibelimab-ipdl) to the global onco-derm franchise of Sun Pharma.
Unloxcyt treats metastatic or locally advanced cutaneous squamous cell carcinoma (cSCC) in the adult population who are not suitable for curative surgery or radiation.
Sun Pharma will purchase Checkpoint’s complete outstanding shares.
Stockholders of Checkpoint will obtain an upfront cash payment of $4.10 per share and are eligible for a non-transferable contingent value right of up to $0.70 per share if the therapy gains approval by certain dates in the European Union or specific European countries.
The transaction will conclude in the second quarter of 2025, subject to regulatory approvals and the affirmative vote of Checkpoint's shareholders.
Sun Pharma managing director and chairman Dilip Shanghvi stated: “Combining Unloxcyt, an FDA-approved anti-programmed cell death ligand 1 (PD-L1) treatment for advanced cSCC, with Sun Pharma’s global presence means patients with cSCC may soon have access to an important, new treatment option.”
A royalty agreement has been established between Checkpoint, Sun Pharma and Fortress Biotech, Checkpoint’s controlling stockholder. Post-closure, Fortress will gain royalties from future sales of the therapy, replacing previous royalty rights.
Fortress will also vote in favour of the transaction.
Checkpoint's board of directors, advised by a special committee of independent directors, unanimously approved the transaction after a thorough review of strategic alternatives.
Legal advice to Sun Pharma is being provided by Barack Ferrazzano Kirschbaum & Nagelberg, and Allen Overy Shearman Sterling US.
Alston & Bird and Locust Walk are acting as Checkpoint’s legal advisor and exclusive and lead financial advisor, respectively.
Sun Pharma received FDA approval in July l2024 for Leqselvi (deuruxolitinib), an oral treatment for severe alopecia areata.
"Sun Pharma agrees to acquire Checkpoint Therapeutics" was originally created and published by Pharmaceutical Technology, a GlobalData owned brand.
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