Checkpoint is a Nasdaq-listed commercial-stage company focused on developing novel treatments for patients with solid tumor cancers. For the nine-month period ending September 2024, Checkpoint reported $0.04 million in revenue and a net loss of $27.3 million.
Checkpoint has received approval from the U.S. Food & Drug Administration (FDA) for UNLOXCYT (cosibelimab-ipdl) for the treatment of adults with metastatic cutaneous squamous cell carcinoma (cSCC) or locally advanced cSCC who are not candidates for curative surgery or curative radiation.
Cutaneous Squamous Cell Carcinoma (cSCC) is the second-most common type of skin cancer in the United States, with an estimated annual incidence of approximately 1.8 million cases according to the Skin Cancer Foundation.
As per the terms of the contract, Sun Pharma will acquire all outstanding shares of Checkpoint and Checkpoint stockholders will receive, for each share of common stock they hold, an upfront cash payment of $4.10, without interest, and a non-transferable contingent value right (CVR) entitling the stockholder to receive up to an additional $0.70 in cash, without interest, if cosibelimab is approved prior to certain deadlines in the European Union pursuant to the centralized approval procedure or in Germany, France, Italy, Spain or the United Kingdom, subject to the terms and conditions in the contingent value rights agreement.
The upfront cash payment of $4.10 per share of common stock represents a premium of approximately 66.0% to Checkpoint’s closing share price on March 7, 2025, the last trading day prior to today’s announcement.
In connection with the transaction, Checkpoint, Sun Pharma and Fortress Biotech, Inc., Checkpoint’s controlling stockholder, have entered into a royalty agreement, under which following the closing of the transaction Fortress would be entitled to receive royalty payments based on future sales of cosibelimab during a specified term, in lieu of royalty rights that were granted to Fortress in connection with its founding of Checkpoint.
The transaction is expected to be completed in the second calendar quarter of 2025.
Dilip Shanghvi, chairman & managing director of Sun Pharma, said: “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.”
Sun Pharmaceuticals Industries is a leading global pharmaceutical company with a specialty and generic presence and India's top pharma company.
The pharma major’s consolidated net profit increased 15.04% to Rs 2,903.38 crore on 10.46% rise in revenue from operations to Rs 13,675.46 crore in Q3 FY25 over Q3 FY24.
The scrip was down 0.06% to currently trade at Rs 1609 on the BSE.