Sun Pharma to Acquire Checkpoint Therapeutics in $355 Million Deal

Sun Pharmaceutical Industries Limited, India’s largest pharmaceutical company, announced its acquisition of Checkpoint Therapeutics, Inc., a U.S.-based immunotherapy and oncology firm listed on Nasdaq (CKPT). The deal, valued at up to $355 million, marks a significant step for Sun Pharma in expanding its global footprint in onco-dermatology, with the transaction expected to close in Q2 2025, subject to stockholder and regulatory approvals.

The acquisition includes an upfront cash payment of $4.10 per share, a 66% premium over Checkpoint’s closing price of $2.47 on March 7, 2025. Additionally, Checkpoint shareholders will receive contingent value rights (CVRs) worth up to $0.70 per share, tied to the approval of Checkpoint’s lead drug, cosibelimab, in the European Union or key markets like Germany, France, Italy, Spain, or the UK by specified deadlines. This structure reflects confidence in cosibelimab’s potential while offering shareholders future upside.

At the heart of the deal is UNLOXCYT™ (cosibelimab-ipdl), the first FDA-approved anti-PD-L1 therapy for adults with metastatic or locally advanced cutaneous squamous cell carcinoma (cSCC) ineligible for curative surgery or radiation. cSCC, the second-most common skin cancer in the U.S., affects approximately 1.8 million people annually. UNLOXCYT strengthens Sun Pharma’s specialty portfolio, which already spans dermatology, ophthalmology, and oncology, aligning with its strategy to deliver innovative therapies globally.

Checkpoint, controlled by Fortress Biotech, Inc. (Nasdaq: FBIO), reported modest revenue of $0.04 million and a $27.3 million net loss for the nine months ending September 30, 2024, with $4.7 million in cash. Fortress will receive royalties on future cosibelimab sales under a separate agreement.

Sun Pharma’s Chairman, Dilip Shanghvi, emphasized that the acquisition enhances their onco-derm offerings, aiming to accelerate UNLOXCYT’s global reach. Checkpoint CEO James Oliviero hailed the deal as a win for stockholders and patients alike, leveraging Sun Pharma’s extensive network to address unmet needs in cSCC treatment.