The shares of Checkpoint Therapeutics, Inc. (NASDAQ: CKPT) saw a sharp increase in value after it was revealed that Sun Pharmaceutical Industries Ltd. would be purchasing it. CKPT shares were up 62.75% to $4.02 as of the last trade that was logged. The two businesses have reached a strategic deal that places Sun Pharma as Checkpoint’s new owner and expands its oncological dermatology portfolio.
FDA Approves Purchase of UNLOXCYT Bolsters
Checkpoint’s recent FDA clearance of UNLOXCYT (cosibelimab-ipdl) is a significant consideration in the purchase. Adults with locally advanced or metastatic cutaneous squamous cell carcinoma (cSCC) who are not candidates for radiation treatment or curative surgery are the target audience for this anti-PD-L1 immunotherapy. Through the acquisition, Sun Pharma hopes to increase UNLOXCYT’s accessibility for patients in need of cutting-edge cancer therapies by utilizing its worldwide market reach.
Enhancing Worldwide Immunotherapy Access
Checkpoint’s FDA-approved UNLOXCYT is the first and only anti-PD-L1 medicine designed especially for advanced colorectal cancer. The company hopes to accelerate the availability of this life-saving treatment in the US, Europe, and other foreign markets by partnering with Sun Pharma. The advancement of immunotherapy technologies will be greatly aided by both firms’ common mission to improve the lives of skin cancer sufferers.
The Agreement’s Financial Terms
Sun Pharma will purchase all of Checkpoint’s outstanding shares when the deal is completed. The $4.10 upfront cash payout to its shareholders represents a 66.0% premium over CKPT’s closing price on March 7, 2025. A non-transferable contingent value right (CVR) will also be given to shareholders, enabling them to obtain an additional $0.70 per share, subject to the approval of cosibelimab in particular European markets.
Agreement on Royalties with Fortress Biotech
Checkpoint, Sun Pharma, and Fortress Biotech, Inc., Checkpoint’s majority shareholder, have signed a royalty agreement as part of the transaction. Fortress will replace its prior royalty rights, which were set before CKPT’s establishment, with royalties based on future sales of cosibelimab for a certain period of time after the transaction is completed. This agreement ensures continued financial benefits for Fortress while supporting the commercial expansion of UNLOXCYT under Sun Pharma’s leadership.