Checkpoint Therapeutics (NASDAQ:CKPT) shares added more than 60% after it was revealed the immunology and targeted oncology firm will be acquired by Sun Pharmaceutical Industries.
Under the agreement, Sun Pharma will acquire Checkpoint for $4.10 per share in cash, representing up to $355 million in upfront payments.
The acquisition brings UNLOXCYT (cosibelimab-ipdl), the first and only US Food and Drug Administration (FDA)-approved anti-PD-L1 treatment for metastatic or locally advanced cutaneous squamous cell carcinoma (cSCC), into Sun Pharma's portfolio.
Per the terms of the acquisition, Checkpoint shareholders may also receive an additional $0.70 per share if cosibelimab gains regulatory approval in key European markets within specified timelines.
"Combining UNLOXCYT, an FDA-approved anti-PD-L1 treatment for advanced cutaneous squamous cell carcinoma, with Sun Pharma's global presence means patients with cSCC may soon have access to an important, new treatment option,” Sun Pharma chairman and managing director Dilip Shanghvi said in a statement.
“The acquisition further bolsters our innovative portfolio in onco-derm therapy."
James Oliviero, Checkpoint CEO, added: “We are excited to enter this transaction with Sun Pharma as the next step to bringing UNLOXCYT to cSCC patients in need of a differentiated immunotherapy treatment option.”
"Sun Pharma is aligned with Checkpoint's commitment to improving the lives of skin cancer patients, and I believe this transaction will maximize value for our stockholders and provide accelerated access to UNLOXCYT in the United States, Europe and other markets worldwide."
The acquisition is expected to close in the second quarter of 2025.
Shares of Checkpoint Therapeutics added 62.8% at about $4 on Monday afternoon.