Major Acquisition: New Skin Cancer Treatment Set for Global Launch by Pharma Giant!

Pharma Leader Acquires Checkpoint Therapeutics to Expand Onco-Derm Portfolio with FDA-Approved UNLOXCYT™

Sun Pharmaceutical Industries Limited announced its acquisition of Checkpoint Therapeutics, a Nasdaq-listed oncology company. Sun Pharma will purchase all outstanding shares of Checkpoint at an upfront cash payment of $4.10 per share, totaling up to $355 million. Additionally, stockholders may receive up to $0.70 per share as a contingent value right upon achieving certain regulatory milestones. The acquisition is expected to close by Q2 2025, pending regulatory and shareholder approvals.

Strategic Advantage for Sun Pharma
With this acquisition, Sun Pharma will add UNLOXCYT™ (cosibelimab-ipdl) to its portfolio. This is the first and only FDA-approved anti-PD-L1 treatment for metastatic or locally advanced cutaneous squamous cell carcinoma (cSCC). Sun Pharma aims to leverage its global reach to enhance patient access to this novel treatment, strengthening its position in the onco-derm space.

Financial Impact
Checkpoint Therapeutics reported revenues of Rs 0.04 million and a net loss of Rs 27.3 million for the nine-month period ending September 2024. The company's R&D expenses were Rs 19.3 million. At the end of September 2024, Checkpoint held Rs 4.7 million in cash, with Rs 15.6 million in outstanding payables.

Sun Pharma's Performance Highlights
For Q3 FY25, Sun Pharma's consolidated sales increased by 10.5 per cent year-on-year (YoY) to Rs 134,369 million. EBITDA rose by 15.3 per cent to Rs 40,090 million, with margins at 29.3 per cent. The net profit was Rs 29,034 million, up from Rs 25,238 million YoY. The company declared an interim dividend of Rs 10.50 per share.

India and U.S. Market Performance
Sun Pharma's Indian formulation sales grew by 13.8 per cent YoY to Rs 43,004 million, contributing 32 per cent to consolidated sales. The company maintained its top position in the Indian pharmaceutical market with an 8.2 per cent market share. In the U.S., sales declined by 1 per cent to $474 million, influenced by lower sales of Lenalidomide.

Growth Strategy and Outlook
Sun Pharma remains focused on specialty growth, particularly in dermatology and ophthalmology, while exploring new therapeutic areas. The acquisition of Checkpoint Therapeutics aligns with its strategy of expanding its innovative portfolio. Management expects continued market outperformance, driven by new product launches and strategic investments.

Disclaimer: The article is for informational purposes only and not investment advice.