Sun Pharma to Acquire Checkpoint Therapeutics for $355 Million: A Strategic Move in Oncology

Sun Pharmaceutical Industries share, India's largest drug maker by revenue, has announced its decision to acquire Nasdaq-listed Checkpoint Therapeutics in a $355 million deal. The acquisition, confirmed on March 10, 2025, will help Sun Pharma enhance its oncology portfolio, particularly in the high-margin specialty pharmaceutical market in the United States.

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Details of the Acquisition

The deal involves an upfront cash payment of $4.10 per share for Checkpoint's common stock, totaling approximately $355 million. This acquisition is a significant move for Sun Pharma, which aims to strengthen its position in the oncology segment, especially in the US, a key revenue-generating market for the company. The transaction includes Checkpoint's promising FDA-approved therapy for advanced skin cancer, UNLOXCYT, along with other novel treatments developed by the company for solid tumor cancers. Sun Pharmaceutical Shares are expected to be in focus on Monday after it announced that it will acquire Nasdaq-listed immunotherapy.

Checkpoint Therapeutics is a commercial-stage company focused on immunotherapy and targeted oncology, making it an ideal addition to Sun Pharma’s portfolio, which is already extensive but will now gain a more concentrated focus on cancer therapies.

Strategic Importance for Sun Pharma

Dilip Shanghvi, Chairman & Managing Director of Sun Pharma, expressed confidence in the acquisition, stating that it would further strengthen the company’s innovative oncology portfolio, particularly in onco-derm therapy, an area of increasing importance in cancer treatment. He emphasized the long-term growth potential the acquisition offers, particularly as oncology therapies have been a significant focus of the company’s research and development efforts.

For Checkpoint Therapeutics, the acquisition offers a strategic pathway to accelerate the global availability of its key product, UNLOXCYT. James Oliviero, President and CEO of Checkpoint, highlighted that the acquisition would maximize stockholder value and provide accelerated access to UNLOXCYT in the United States, Europe, and other markets worldwide. The addition of Sun Pharma’s vast distribution networks is expected to facilitate the expansion of Checkpoint’s treatments to new regions.

Financial Terms and Premium

The $4.10 per share offer represents a 66% premium over Checkpoint’s closing share price on March 7, 2025. This substantial premium indicates Sun Pharma’s strong commitment to acquiring Checkpoint and the potential of its oncology portfolio. The deal, while ambitious, reflects Sun Pharma’s strategy to expand its reach in the specialty pharmaceuticals sector, especially targeting cancer therapies, which are expected to grow significantly in the coming years.

Regulatory and Shareholder Approvals

The acquisition is subject to the approval of Checkpoint’s shareholders and regulatory authorities. Sun Pharma expects the transaction to be completed by the second quarter of calendar year 2025 (Q2CY25), pending the necessary approvals. Once finalized, the acquisition will significantly boost Sun Pharma's oncology capabilities, positioning it as a formidable player in the global oncology market.

Conclusion

This acquisition by Sun Pharma marks a key strategic step toward expanding its oncology offerings and reinforcing its position in the global pharmaceutical market. The integration of Checkpoint’s portfolio, particularly its advanced cancer therapies like UNLOXCYT, will likely accelerate Sun Pharma’s growth in the US market and globally. This move also signals Sun Pharma’s continued focus on high-margin specialty drugs, setting the stage for future growth in oncology.