Sun Pharma Acquires Checkpoint Therapeutics for $355 Million

Image Credit: Adobe Stock Images/David A Litman

Sun Pharma announced that it has agreed to terms on the acquisition of Checkpoint Therapeutics, an immunotherapy and targeted oncology company, for approximately $355 million. The acquisition includes Unloxcyt (cosibelimab-ipdl), Checkpoint’s FDA-approved anti-PD-L1 therapy for metastatic and locally advanced cutaneous squamous cell carcinoma (cSCC).¹

"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,” said Dilip Shanghvi, chairman, managing director, Sun Pharma, in a press release.

Under the terms of the deal, Checkpoint stockholders will receive $4.10 per share in cash, with an additional contingent payment of up to $0.70 per share based on regulatory approvals in Europe. The payment represents a 66% premium over Checkpoint’s last closing share price. Additionally, Checkpoint and Sun Pharma have agreed to a royalty payment system with Fortress Biotech, Checkpoint’s majority shareholder. Under this agreement, Fortress could receive royalty payments based on future Unloxcyt sales for a limited period.¹

The FDA first approved Unloxcyt in December 2024, based on results from the CK-301-101 study, which demonstrated clinically meaningful objective response rates and duration of response data in patients with cSCC.²

According to the Skin Cancer Foundation, squamous cell carcinoma (SCC) is the second most common form of skin cancer, with an estimated 1.8 million cases diagnosed annually in the United States. Additionally, it is the most common skin cancer in Black people.³ According to Medscape, the incidence of cSCC has continued to rise in recent years, mainly due to an aging population, increased tanning bed use, improved detection methods, and various environmental factors.⁴

"I am proud of the dedication and passion of our team at Checkpoint that allowed us to achieve the first and only FDA-approved anti-PD-L1 treatment for patients with advanced cSCC, and we are excited to enter this transaction with Sun Pharma as the next step to bringing Unloxcyt to cSCC patients in need of a differentiated immunotherapy treatment option," said James Oliviero, president and CEO of Checkpoint, in the press release. "Sun Pharma is aligned with Checkpoint's commitment to improving the lives of skin cancer patients, and I believe this transaction will maximize value for our stockholders and provide accelerated access to Unloxcyt in the United States, Europe, and other markets worldwide."

The acquisition, expected to close in Q2 2025, remains subject to regulatory approvals and customary conditions.¹

References

1. Sun Pharma to Acquire Checkpoint Therapeutics. PR Newswire. March 9, 2025. Accessed March 10, 2025. https://prnmedia.prnewswire.com/news-releases/sun-pharma-to-acquire-checkpoint-therapeutics-302396492.html

2. FDA Approves Checkpoint Therapeutics’ Unloxcyt for Metastatic or Locally Advanced Cutaneous Squamous Cell Carcinoma. PharmExec. December 16, 2024. Accessed March 10, 2025. https://www.pharmexec.com/view/fda-approves-checkpoint-therapeutics-unloxcyt-metastatic-locally-advanced-cutaneous-squamous-cell-carcinoma

3. Skin Cancer Facts & Statistics. Skin Cancer Foundation. Accessed March 10, 2025. https://www.skincancer.org/skin-cancer-information/skin-cancer-facts/

4. Cutaneous Squamous Cell Carcinoma. Medscape. Accessed March 10, 2025. https://emedicine.medscape.com/article/1965430-overview#a5