Sun Pharma to acquire Nasdaq-listed Checkpoint Therapeutics for $355 million; shares edge higher

Sun Pharmaceutical Industries Ltd. has announced the acquisition of Nasdaq-listed Checkpoint Therapeutics, Inc., an immunotherapy and targeted oncology company, in a $355 million cash deal. The acquisition will bolster Sun Pharma’s onco-dermatology portfolio, adding Checkpoint’s recently FDA-approved cancer drug, UNLOXCYT (cosibelimab-ipdl), to its pipeline.

The deal, expected to close in the second quarter of the 2025 calendar year, marks a strategic move by Sun Pharma to expand its presence in the oncology segment. Following the announcement, Sun Pharma’s stock gained 2 percent, while Checkpoint’s shares jumped 3.78 percent on the Nasdaq.

Acquisition Details

Sun Pharma will pay an upfront cash consideration of $4.1 per share, representing a 66 percent premium to Checkpoint’s last closing price. Additionally, Checkpoint shareholders will receive a contingent value right of up to $0.7 per share, subject to the European regulatory approval of cosibelimab within specified deadlines.

Upon completion of the transaction, Sun Pharma will acquire all outstanding shares of Checkpoint Therapeutics. The acquisition remains subject to stockholder approval and regulatory clearances.

Checkpoint Therapeutics focuses on developing novel treatments for solid tumor cancers. The company recently received FDA approval for UNLOXCYT for adults with metastatic or locally advanced cSCC, who are not candidates for curative surgery or radiation.

Post-acquisition, Fortress Biotech, Inc., Checkpoint’s controlling stockholder, will receive royalty payments from future sales of cosibelimab under a newly structured agreement with Sun Pharma and Checkpoint.

Strategic Benefits for Sun Pharma

With this acquisition, Sun Pharma strengthens its oncology portfolio by integrating UNLOXCYT, the first and only FDA-approved anti-PD-L1 treatment for metastatic or locally advanced cutaneous squamous cell carcinoma (cSCC). The company aims to leverage its global presence to accelerate patient access to this crucial treatment.

Dilip Shanghvi, Chairman and Managing Director of Sun Pharma, emphasized the strategic fit, stating:

“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. The acquisition further bolsters our innovative portfolio in onco-derm therapy.”

James Oliviero, President and CEO of Checkpoint, echoed similar sentiments, highlighting Sun Pharma’s commitment to expanding access to UNLOXCYT in the US, Europe, and other global markets.

Market Reaction

Following the announcement, shares of Checkpoint Therapeutics surged 3.78 percent to close at $2.47 on the Nasdaq. Meanwhile, Sun Pharma’s stock rose 2 percent to touch a day’s high of ₹1,643.20 on the BSE on Monday, March 10.

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