Sun Pharma to Acquire Checkpoint Therapeutics for $355 Million, Gains FDA-Approved Cancer Drug

Sun Pharma is set to acquire Nasdaq-listed Checkpoint Therapeutics for $355 million, strengthening its specialty portfolio, particularly in oncology. Checkpoint specializes in immunotherapy and targeted treatments for solid tumor cancers, and the deal includes UNLOXCYT, an FDA-approved drug for advanced skin cancer. Sun Pharma’s global presence is expected to enhance patient access to this treatment. Checkpoint shareholders will receive $4.1 per share in cash, and the transaction is expected to close in Q2 2025, pending regulatory and shareholder approvals.

Checkpoint’s CEO stated that the acquisition will accelerate the global availability of UNLOXCYT. Sun Pharma will take full ownership of Checkpoint’s outstanding shares, while Fortress Biotech, Checkpoint’s parent company, will receive royalty payments based on future sales of cosibelimab. This acquisition further expands Sun Pharma’s offerings in onco-dermatology treatments.

Sun Pharma to Acquire Checkpoint Therapeutics for $355 Million, Gains FDA-Approved Cancer Drug

Sun Pharmaceutical Industries, India’s largest drug manufacturer, has announced its acquisition of Checkpoint Therapeutics, a Nasdaq-listed biotechnology company focused on immunotherapy and targeted oncology. The deal, valued at $355 million (approximately ₹3,000 crore), is expected to significantly enhance Sun Pharma’s specialty drug portfolio, particularly in the field of oncology.

Checkpoint Therapeutics is a commercial-stage biopharmaceutical company specializing in the development of innovative treatments for solid tumor cancers. A key component of this acquisition is Sun Pharma’s ownership of UNLOXCYT, a groundbreaking FDA-approved therapy designed to treat advanced skin cancer. This acquisition marks a strategic move by Sun Pharma to strengthen its presence in the global oncology market.

Strengthening Sun Pharma’s Oncology Focus

Dilip Shanghvi, the Chairman and Managing Director of Sun Pharma, emphasized the importance of this acquisition in expanding the company’s oncology portfolio. He highlighted that UNLOXCYT, an anti-PD-L1 therapy specifically developed for advanced cutaneous squamous cell carcinoma, will benefit from Sun Pharma’s extensive global reach. This means more patients worldwide will have access to an innovative and much-needed treatment. Shanghvi also pointed out that integrating this cutting-edge therapy into Sun Pharma’s existing specialty medicine offerings would further solidify the company’s position in the onco-dermatology segment.

James Oliviero, President and CEO of Checkpoint Therapeutics, echoed these sentiments, stating that the acquisition is expected to provide substantial value to Checkpoint’s shareholders. Additionally, he noted that Sun Pharma’s global presence and resources would accelerate the availability of UNLOXCYT in key markets, including the United States, Europe, and other international regions. The deal, he explained, represents a crucial step in ensuring that patients who need advanced cancer treatments can access them faster.

Deal Structure and Shareholder Benefits

As part of the agreement, Sun Pharma will acquire all outstanding shares of Checkpoint Therapeutics. Shareholders of Checkpoint will receive a cash payout of $4.1 per share. However, the completion of this acquisition remains subject to regulatory approvals as well as approval from Checkpoint’s shareholders. If all goes as planned, the transaction is expected to close by the second quarter of 2025.

This acquisition underscores Sun Pharma’s ongoing strategy to invest in specialty pharmaceuticals, particularly in oncology and immunotherapy. The company has been actively working towards expanding its presence in these high-growth therapeutic areas, aiming to provide advanced treatment options to patients worldwide.

Royalty Agreement with Fortress Biotech

Another critical aspect of this deal is the royalty agreement involving Checkpoint’s controlling stakeholder, Fortress Biotech. Under this arrangement, Fortress Biotech will receive royalty payments from Sun Pharma based on the future sales performance of cosibelimab, another promising cancer drug. These payments will replace the previous royalty rights that were granted to Fortress, ensuring that the parent company continues to benefit from Checkpoint’s innovations even after the acquisition.

The inclusion of this royalty structure indicates Sun Pharma’s confidence in the future success of cosibelimab, which is being positioned as a key asset in its oncology pipeline. By securing this agreement, Sun Pharma ensures that its investment in Checkpoint’s portfolio continues to yield long-term benefits while strengthening relationships with key stakeholders.

Sun Pharma’s Growing Global Footprint

This latest acquisition is part of a broader effort by Sun Pharma to strengthen its global footprint in the pharmaceutical industry, particularly in the field of specialty medicines. Over the past few years, the company has focused heavily on expanding its oncology and dermatology portfolios, making strategic acquisitions and partnerships to drive innovation in these areas.

By integrating Checkpoint Therapeutics’ expertise in immunotherapy and targeted cancer treatments, Sun Pharma aims to further establish itself as a leading player in the oncology sector. The addition of UNLOXCYT and other promising drug candidates aligns with the company’s long-term vision of delivering cutting-edge treatments to patients in need.

Looking Ahead

If the acquisition proceeds as expected, Sun Pharma will not only gain a strong foothold in the U.S. and European oncology markets but also strengthen its overall research and development capabilities in cancer therapeutics. The success of UNLOXCYT in treating advanced cutaneous squamous cell carcinoma is just the beginning, as Sun Pharma continues to explore innovative solutions in the fight against cancer.

With regulatory approvals anticipated in the coming months, the completion of this acquisition will mark a significant milestone for Sun Pharma in its journey toward expanding its oncology portfolio. The integration of Checkpoint Therapeutics’ assets is expected to bring both financial and strategic benefits, ultimately enhancing Sun Pharma’s ability to deliver life-saving treatments to cancer patients worldwide.