Sun Pharma to acquire US based onco-derma firm Checkpoint for $355 mn

Sun Pharma plans to leverage its global presence to accelerate patient access to this crucial treatment

Indian multinational pharma company Sun Pharmaceutical Industries on Monday announced a definitive agreement to acquire Nasdaq-listed immunotherapy and targeted oncology firm Checkpoint Therapeutics for an upfront cash payment of $355 million (around ₹3,099.51 crore).

 

The deal is expected to close in the second quarter of the 2025 calendar year. Sun Pharma will acquire all outstanding shares of Checkpoint at $4.10 per share in cash, representing a 66 per cent premium to the US company’s closing share price on March 7. Checkpoint stockholders will also receive a contingent value right of up to $0.70 per share if cosibelimab secures regulatory approval in select European markets.

 

The deal will add Checkpoint’s recently FDA-approved cancer treatment, UNLOXCYT (cosibelimab-ipdl), to its portfolio. UNLOXCYT is the first and only FDA-approved anti-PD-L1 treatment for metastatic or locally advanced cutaneous squamous cell carcinoma (cSCC), a form of skin cancer.  Sun Pharma Chairman and Managing Director Dilip Shanghvi said combining UNLOXCYT with the company’s global presence means patients with cSCC may soon have access to an important new treatment option.   

 

“This acquisition further bolsters our innovative portfolio in onco-dermatology,” Sun Pharma’s Chairman and MD Dilip Shanghvi said.

 

Sun Pharmaceutical Industries has been pursuing collaborations to expand its portfolio. For example, it last year signed a licensing agreement with Philogen, an Italian-Swiss firm, for its anti-cancer drug Fibromun.

 

According to analysts, the US market opportunity for the drug is between $1 billion and $1.6 billion annually. Even if the drug captures a 15–20 per cent peak market share, it could prove to be a successful investment for Sun Pharma. 

 

Sun Pharma’s stock rose by 0.13 per cent, closing at ₹1,612 per share on the BSE.

 

“Sun Pharma’s acquisition is a strategic fit with significant upside potential. It strengthens its onco-derm franchise and grants entry into the fast-growing PD-1 inhibitor space, expected to reach $50 billion by 2025. With a long patent life until 2038 and a Medicare-focused marketing strategy, we foresee at least $200 million in peak sales from mCSCC or locally advanced CSCC (laCSCC) indications alone,” said Axis Capital in a note.

 

Cutaneous squamous cell carcinoma (cSCC) is the second most common skin cancer in the US, with an estimated 1.8 million cases diagnosed annually. Around 40,000 cases progress to advanced stages, and the disease causes an estimated 15,000 deaths each year.

 

For the nine-month period ended September 2024, Checkpoint reported revenues of $0.04 million and a net loss of $27.3 million. The company held a cash balance of $4.7 million as of September 30, 2024. The acquisition remains subject to Checkpoint stockholder approval and regulatory clearances. Fortress Biotech, Checkpoint’s controlling stockholder, has agreed to vote in favour of the transaction.

 

As part of the deal, Checkpoint’s controlling shareholder Fortress Biotech will receive royalty payments on future sales of cosibelimab for a set period.

 

Checkpoint President and Chief Executive Officer James Oliviero said the transaction would maximise value for the company’s stockholders and provide accelerated access to UNLOXCYT in the US, Europe, and other markets worldwide.

 

Sun Pharma’s strategic expansion in the US market has been marked by key milestones, beginning with its 1998 entry through the Caraco acquisition. Subsequent acquisitions, including Taro Pharma in FY10 and DUSA in FY13, solidified its presence in dermatology and branded specialties. Further growth came through the acquisitions of Ocular Technologies in FY17 and Novartis’s Odomzo in FY18, leading to the launch of key products like Ilumya, Cequa, and Absorica LD. In recent years, the company has launched Winlevi (FY22) and Sezaby (FY23) and acquired Concert Pharma, gaining access to deuruxolitinib for alopecia areata. In FY24, the company completed the full acquisition of Taro Pharmaceutical.

 

Barack Ferrazzano Kirschbaum & Nagelberg LLP and Allen Overy Shearman Sterling US are serving as legal advisors to Sun Pharma. Locust Walk is the exclusive financial advisor to Checkpoint, with Cooley LLP and Morris, Nichols, Arsht & Tunnell LLP providing legal counsel to the Checkpoint Special Committee.