Shares in POINT Biopharma Global Inc (NASDAQ:PNT) jumped 84% following the announcement that pharmaceutical giant Eli Lilly and Co (NYSE:LLY) will acquire the company for $1.4 billion (£1.03 billion).
The acquisition allows Lilly to expand its portfolio of experimental cancer therapies, particularly in the area of radioligand treatments.
The American company has been strategically enhancing its product pipeline through a series of acquisitions, including a $2.4 billion buyout of Dice Therapeutics and a $1.93 billion purchase of privately held Versanis earlier this year.
Point Biopharma is in the advanced stages of testing its radioligand therapy candidates, PNT2002 and PNT2003.
These experimental treatments utilise radioactive particles to destroy cancer cells, coupled with molecules that specifically target tumours.
Eli Lilly's offer of $12.50 per share represents a premium of approximately 87% over Point Biopharma's last closing price.
Pre-market, the stock had been marked up to $12.32.