Checkpoint Therapeutics (NASDAQ: CKPT) shares skyrocketed over 65% in pre-market trading Monday after Sun Pharmaceutical Industries revealed plans to acquire the U.S.-based oncology company for about $355 million.
Sun Pharma, a leading Indian pharmaceutical company, said it will purchase Checkpoint Therapeutics at $4.10 per share in cash, representing a nearly 66% premium over the stock’s closing price of $2.47 on the previous Friday. In addition, Checkpoint shareholders stand to gain an extra $0.70 per share if the company’s skin cancer treatment, cosibelimab, secures regulatory approval in Europe before certain deadlines.
Cosibelimab, the FDA-approved treatment for certain variants of skin cancer, is the cornerstone of Sun Pharma’s interest in the deal. The Indian firm highlighted that acquiring Checkpoint will allow it to introduce cosibelimab to a broader international market, expanding its reach in the oncology sector. The transaction is expected to close in the second quarter of 2025.
As part of the broader agreement, Sun Pharma has also inked a royalty agreement with Fortress Biotech (NASDAQ: FBIO), which holds a controlling stake in Checkpoint Therapeutics (NASDAQ: CKPT). Under this arrangement, Fortress will receive payments based on future sales of cosibelimab, ensuring it benefits as the drug expands globally.
Founded in 1983, Sun Pharmaceutical Industries is one of the world’s leading producers of generic pharmaceuticals, which are also a major export product for India. The company now operates in over 100 countries and has been diversifying its business to include a wide range of healthcare services in recent years. This acquisition marks another step in that expansion, particularly in the high-demand field of oncology.
