Major Acquisition Deal in Pharmaceutical Industry: Sun Pharma to Acquire Checkpoint Therapeutics

Over the past year, the stock has seen a modest return of 0.2 per cent. However, over a three-year period, it has delivered a return of 85.27 per cent, indicating significant growth.

Sun Pharmaceutical Industries Limited has announced a significant move with its acquisition of Checkpoint Therapeutics, Inc. This strategic acquisition was formalized through an Agreement and Plan of Merger dated March 9, 2025. The merger involves Sun Pharmaceutical Industries, Inc., Checkpoint Therapeutics, Inc., and Snoopy Merger Sub, Inc. The merger agreement outlines various aspects, including the merger of the Merger Sub into Checkpoint Therapeutics, the conversion of shares, and the treatment of equity awards and company warrants. The agreement also covers representations and warranties of both parties, certain covenants, and conditions precedent to the merger. Additionally, the document details the termination conditions and miscellaneous provisions related to the merger. This acquisition is a strategic step for Sun Pharma as it continues to expand its footprint in the pharmaceutical industry.

Sun Pharmaceutical Industries Limited, a leading player in the pharmaceutical sector, currently has a stock market price of Rs 1611.15. The company boasts a substantial market capitalization of Rs 3,86,26,89,48,070. Over the past year, the stock has seen a modest return of 0.2 per cent. However, over a three-year period, it has delivered a return of 85.27 per cent, indicating significant growth. The stock's 52-week high is Rs 1960.2, while its 52-week low is Rs 1376.75. Sun Pharma remains a prominent entity in the market, known for its robust financial standing and strategic initiatives. The company has been maintaining a healthy dividend payout of 46.6 per cent.

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In the Quarterly Results of Dec-24, revenue stood at Rs 13,675.46 crore, reflecting a YoY growth of 10.46 per cent and a QoQ increase of 2.89 per cent from Rs 13,291.39 crore in Sep-24. Net profit for Dec-24 was Rs 2,903.38 crore, showing a YoY growth of 15.04 per cent but a QoQ decline of 4.50 per cent from Rs 3,040.16 crore in Sep-24. The net profit margin for Dec-24 was 21.23 per cent, compared to 22.87 per cent in Sep-24 and 20.38 per cent in Dec-23.

For the full-year FY24, revenue reached Rs 48,496.85 crore, marking a YoY growth of 10.51 per cent from Rs 43,885.68 crore in FY23. Net profit for FY24 was Rs 11,433.74 crore, reflecting a YoY increase of 8.42 per cent from Rs 8,783.21 crore in FY23. The net profit margin for FY24 stood at 18.11 per cent, compared to 18.46 per cent in FY23.

As of December 2024, the shareholding pattern stands as follows: Promoters hold 54.48 per cent, FIIs hold 18.04 per cent, DIIs hold 18.43 per cent, Government holds 0.11 per cent, and the Public holds 8.92 per cent. Compared to the previous quarter (September 2024), there is no significant change in the shareholding pattern.

With a PE ratio of 33.7x, the company trades at a premium compared to the industry PE of 28.7x. The company has ROCE of 17.3 per cent and ROE of 16.7 per cent.  

Investors must keep this Small-Cap stock on their radar.

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