The shares of India’s largest pharmaceutical company engaged in the business of manufacturing and developing generic formulations and APIs came into focus on Monday after entering into an agreement to acquire Checkpoint Therapeutics, a Nasdaq-listed company.
Stock Performance
With a market capitalization of Rs. 3,86,199.52 crore, Sun Pharmaceuticals Industries Ltd jumped 2 percent in Monday’s trading session and made a high of Rs. 1643.20 per share compared to its previous closing price of Rs. 1609.90 per share. The stock retraced from its day’s high and was trading at Rs. 1609.65 which is a slight increase compared to the previous close.
What Happened
Sun Pharma is set to acquire Nasdaq-listed Checkpoint Therapeutics for USD 355 Million. Checkpoint is a commercial-stage biotech firm specializing in immunotherapy for solid tumor cancers and has recently received FDA approval for UNLOXCYT™ (cosibelimab-ipdl) to treat advanced cutaneous squamous cell carcinoma (cSCC).
After the transaction, Sun Pharma will acquire all the outstanding shares of Checkpoint and will pay an upfront cash payment of USD 4.10 for each share, which is a 66 percent premium to the closing price of Checkpoint on Friday. Apart from this, the shareholders will receive a contingent value right for up to USD 0.7 per share.
However, the additional payout depends on cosibelimab receiving approval within specified deadlines in the European Union (via centralized approval) or in key markets such as Germany, France, Italy, Spain, or the UK. The transaction is expected to close in Q2 CY2025.
Further, Fortress Biotech, Checkpoint’s controlling stockholder, has entered into a royalty agreement with Sun Pharma. Following the transaction’s completion, Fortress will receive royalty payments on future Cosibelimab sales for a specified period.
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Company Overview
Sun Pharma, India’s largest pharmaceutical company specializes in a wide range of branded and generic formulations and Active Pharma Ingredients (APIs). Along with its subsidiaries, the company has various manufacturing facilities spread across the globe.
Financial Performance
Looking at the financials, Sun Pharma reported a 10 percent increase in revenue from Rs. 12,381 crore to Rs. 13,675 crore in Q3 FY25. This was accompanied by a 14 percent increase in net profits from Rs. 2,561 crore to Rs. 2,913 crore during the same quarter.
Written by Shwetha Sairam
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