Sun Pharma Expands Onco-Dermatology Portfolio with Acquisition of Checkpoint Therapeutics

Published: 11 Mar 2025

Author: Precedence Research

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Sun Pharmaceutical Industries Limited has completed the takeover of Checkpoint Therapeutics, a listed immunotherapy and targeted oncology company at Nasdaq, and seeks to further boost its global franchise in once-dermatology and extend its innovative treatment portfolio for cancer patients around the world.

Recently, Checkpoint Therapeutics, which is a commercial-stage company, has received FDA approval on UNLOXCYT, which is an anti-PD-L1 treatment meant for adults with metastatic cutaneous squamous cell carcinoma (cSCC) or locally advanced cSCC, who are not candidates for curative surgery or radiation treatment. This acquisition empowers Sun Pharma to enhance this promising treatment, the second most common type of skin cancer in the US, to access its global reach. 

Key Details of the Transaction

Sun Pharma has agreed to take over all income shares of Checkpoint, under which stockholders will approach an upfront cash payment of $4.10 per share without interest, as well as a non-transferable contingent value right (CVR) of up to $0.70 per share in cash, subject to regulatory approval of UNLOXCYT in the European Union or significant European markets. The upfront payment of cash represents a premium of 66 percent over Checkpoint's closing share price on March 7, 2025. According to the Chairman and Managing Director, of Sun Pharma, Dip Shanghvi, such an acquisition signifies that the combination of UNLOXCYT with Sun Pharma's global presence would equally become a new treatment option for patients suffering from cSCC. He is also followed by Checkpoint's President and CEO, James Oliviero, who expressed pride in the dedication and passion of the team at Checkpoint that became the first FDA-approved anti-PD-L1 treatment for advanced cSCC patients.

Checkpoint’s Financial Performance and R&D Investment

Checkpoint is a cutting-edge oncology treatment company reporting net losses of $27.3 million and R&D charges of $19.3 million covering the nine months ending September 2024. The company has cash in the bank of $4.7 million, overdue trade payable, and accrued expense amounts of $15.6 million. Nevertheless, under harsh financial conditions for Checkpoint, the approval of UNLOXCYT stands as a hallmark that this company would be an attractive acquisition for Sun Pharma. Fortress Biotech holds the majority of the voting power of Checkpoint and will have its votes cast in favor of the acquisition, thereby assuring a transition that will inspire confidence in Sun Pharma's commercialization of Checkpoint's breakthrough therapies.

The Road Ahead: Global Expansion and Patient Access

Sun Pharma has acquired Checkpoint Therapeutics, an internationally distributing and oncology-focused company, to fast-track the worldwide availability of advanced immunotherapies for skin cancer patients. With this acquisition, Sun Pharma is going to expand its oncology portfolio further and build upon its research and development capabilities. In this respect, UNLOXCYT, which has recently been approved by the FDA, will now be included in Sun Pharma's portfolio as a treatment offering for the global cSCC patient population. This move strengthens Sun Pharma's standing as an innovative industry leader committed to improving patient outcomes in oncology. In this regard, the acquisition also fits into Sun Pharma's more comprehensive commitment to research-based innovation.