Sun Pharmaceutical Industries Ltd. has disclosed a $355 million takeover of US company Checkpoint Therapeutics, a immunotherapy and targeted oncology therapy specialist. The acquisition is designed to add further strength to Sun Pharma's onco-derm (global oncology and dermatology) portfolio, led by the addition of UNLOXCYT (cosibelimab-ipdl), a US FDA-approved treatment for metastatic cutaneous squamous cell carcinoma (cSCC).
The deal is scheduled to close during the second quarter of 2025, increasing Sun Pharma's stronghold in the emerging immunotherapy space.

Principal Points of the Deal
1. Strategic Expansion into Immunotherapy and Oncology

• Sun Pharma will be taking over Checkpoint Therapeutics for a cash per share of $4.10.

• The takeover will boost Sun Pharma's pioneering pipeline of therapies in oncology and dermatology.

• Checkpoint's flagship drug, UNLOXCYT (cosibelimab-ipdl), is an anti-PD-L1 immunotherapy that has just been approved by the US FDA.

UNLOXCYT is used for:

• Metastatic cutaneous squamous cell carcinoma (CSCC)

• Locally advanced CSCC in patients who are not candidates for surgery or radiation

Dilip Shanghvi, Chairman and Managing Director, Sun Pharma
"With this acquisition, we are adding an FDA-approved anti-PD-L1 therapy for advanced cutaneous squamous cell carcinoma to our global portfolio. CSCC patients can expect soon to have access to a valuable, new treatment option. This transaction further advances our innovative onco-derm portfolio."

2. Financial Terms of the Deal

• Sun Pharma will pay Checkpoint Therapeutics $355 million upfront.

• The deal will be finalized in Q2 2025, pending regulatory approvals.

Checkpoint's significant financial obligations as of September 30, 2024:

• Accounts payable and accrued expenses of $15.6 million.

• Related-party liabilities of $2.0 million.

• There has been a signing of a royalty agreement among Sun Pharma, Checkpoint, and Fortress Biotech, Inc. (Checkpoint's majority stockholder), in which Fortress shall be entitled to receive royalties on future sales of UNLOXCYT.

James Oliviero, CEO, Checkpoint Therapeutics
"We are eager to collaborate with Sun Pharma as we introduce UNLOXCYT to CSCC patients seeking a unique immunotherapy treatment."

3. Sun Pharma's Growing Global Reach in Oncology

• Sun Pharma is aggressively venturing into the US oncology market, which supplements its already strong dermatology and immunotherapy pipeline.

• The global cancer immunotherapy market size is expected to grow to $175 billion by 2030, and so this acquisition would be a premium strategic one.

• With UNLOXCYT on board, Sun Pharma is positioned to take on international immunotherapy titans such as Merck (Keytruda) and Bristol-Myers Squibb (Opdivo).

4. Impact on Sun Pharma and the Global Oncology Market

• Increases Sun Pharma's US market share in immune-oncology medicines.

• Strengthen Sun Pharma's dermatology and oncology segments, generating new revenues.

• Speeds up global availability of UNLOXCYT, offering treatment options to CSCC patients globally.

Sun Pharma's $355 million acquisition of Checkpoint Therapeutics represents a milestone in its strategy of expanding into oncology and dermatology. Through the acquisition of UNLOXCYT (cosibelimab-ipdl), an FDA-approved immunotherapy, Sun Pharma is strongly positioned to compete in the fast-growing immuno-oncology market.
With this acquisition, Sun Pharma further solidifies its role in delivering innovative, life-saving medicines to patients around the world, affirming its position as a specialty pharmaceutical leader.