Sun Pharma strengthens oncology pipeline with US $355M Checkpoint deal

INDIA – Indian drugmaker Sun Pharmaceutical has announced its plan to acquire Checkpoint Therapeutics, a financially struggling U.S. biotech firm, in a US $355 million deal.

The acquisition will give Sun Pharma ownership of Unloxcyt (cosibelimab-ipdl), a recently approved anti-PD-L1 treatment for advanced cutaneous squamous cell carcinoma (cSCC).

Checkpoint has been struggling with financial difficulties, with cash reserves of just US $4.7 million as of September 2023, while its accumulated debt stood at US $341.7 million.

The company’s lead drug, Unloxcyt, received FDA approval in December 2023, following an earlier rejection due to issues at a third-party contract manufacturer.

Sun Pharma sees the acquisition as a key step in strengthening its presence in the global oncology market.

“Combining Unloxcyt with Sun Pharma’s global presence means patients with cSCC may soon have access to an important, new treatment option,” said Dilip Shanghvi, chairman and managing director of Sun Pharma.

Acquisition details and future potential

Under the agreement, Sun Pharma will pay US $4.10 per share in cash, offering a 66% premium over Checkpoint’s closing stock price on March 7.

Additionally, Checkpoint shareholders could receive up to US $0.70 per share through a contingent value right (CVR) if Unloxcyt gains regulatory approval in Europe or select countries (Germany, France, Italy, Spain, or the UK) within set deadlines.

Checkpoint’s board has unanimously approved the deal, and Fortress Biotech, the company’s majority stakeholder, has also backed the transaction. The acquisition is expected to be completed in the second quarter of 2024.

Expanding Sun Pharma’s oncology pipeline

Beyond Unloxcyt, Checkpoint has other promising cancer treatments in its pipeline, including:

• Olafertinib (formerly CK-101) – a third-generation EGFR inhibitor targeting non-small-cell lung cancer (NSCLC).
• Early-stage drugs for BET, GITR, and CAIX, which are under development for different types of cancer.

Analysts at HC Wainwright had predicted that a full company acquisition would be the most likely outcome, citing Checkpoint’s strong drug pipeline and Unloxcyt’s market potential.

Sun Pharma has been expanding its oncology and immunotherapy business, and this acquisition follows its 2023 licensing agreement with Philogen, an Italian-Swiss firm, for the cancer drug Fibromun (L19TNF).