Sun Pharma Acquire Checkpoint Therapeutics
In a major move to expand its presence in the high-margin oncology segment, Sun Pharmaceutical Industries Ltd (Sun Pharma), India’s largest drug manufacturer by revenue, has announced the acquisition of Checkpoint Therapeutics Inc., a US-based biopharmaceutical company listed on Nasdaq.
The deal, valued at $355 million, will be executed through an upfront cash payment of $4.10 per share, representing a 66% premium to Checkpoint’s closing share price on March 7, 2025. This strategic acquisition will allow Sun Pharma to strengthen its oncology and immunotherapy portfolio, especially in the US market.
What is Checkpoint Therapeutics Known For?
Checkpoint Therapeutics is a commercial-stage immunotherapy and targeted oncology company focused on developing treatments for solid tumor cancers. One of its key products is UNLOXCYT, a recently FDA-approved therapy for advanced skin cancer. This acquisition will provide Sun Pharma an edge in the growing oncology market by adding UNLOXCYT to its product portfolio.
Why is This Acquisition Important for Sun Pharma?
The acquisition is a strategic step by Sun Pharma to expand its specialty drug segment in the United States. Sun Pharma has been making aggressive moves in the oncology and dermatology space, and this deal further strengthens its position in the high-margin specialty pharmaceuticals market.
Dilip Shanghvi, Chairman and Managing Director of Sun Pharma, expressed his excitement about the deal, stating:
“The acquisition of Checkpoint Therapeutics is a major milestone for us as it will significantly enhance our innovative portfolio in oncology and onco-dermatology.”
Deal Highlights
- ✅ Acquisition Cost: $355 million (₹2,938 crore)
- ✅ Purchase Price Per Share: $4.10 per share (66% premium to the closing price on March 7, 2025)
- ✅ Key Product Acquired: UNLOXCYT – FDA-approved treatment for advanced skin cancer
- ✅ Expected Completion: Q2 2025 (subject to shareholder and regulatory approvals)
What This Means for Sun Pharma’s Business
This acquisition will open new revenue streams for Sun Pharma, especially in the oncology segment in the United States, Europe, and other key international markets. The demand for cancer treatment drugs is rapidly increasing, and having a promising product like UNLOXCYT in its portfolio will give Sun Pharma a competitive edge.
James Oliviero, President and CEO of Checkpoint Therapeutics, mentioned:
“This acquisition will provide accelerated access to UNLOXCYT across major global markets and unlock significant value for our stockholders.”
Checkpoint’s Financial Performance
According to Checkpoint’s financial report for the nine-month period ending September 2024:
- ✅ Revenue: $0.04 million
- ✅ Net Loss: $27.3 million
- ✅ R&D Expense: $19.3 million
While Checkpoint has been struggling financially, its innovative pipeline and FDA-approved product (UNLOXCYT) attracted Sun Pharma’s attention.
Sun Pharma’s Aggressive Expansion Strategy
This is not the first time Sun Pharma has made a major acquisition. In 2023, Sun Pharma acquired Concert Pharmaceuticals Inc. for $576 million to boost its dermatology portfolio. Now, with Checkpoint Therapeutics, Sun Pharma is focusing on strengthening its oncology division.
Sun Pharma currently holds a market capitalization of ₹3.86 lakh crore, but its stock has faced a 15% decline in 2025 amid global market uncertainties. However, this strategic acquisition may drive future revenue growth and improve investor sentiment.
About Sun Pharma
Sun Pharmaceutical Industries Ltd., commonly known as Sun Pharma, is the largest pharmaceutical company in India and the fourth-largest specialty generic pharmaceutical company in the world. Founded in 1983 by Dilip Shanghvi, Sun Pharma focuses on high-quality, affordable medicines across a wide range of therapeutic areas, including cardiology, psychiatry, neurology, oncology, dermatology, and diabetes.
Key Highlights of Sun Pharma:
- ✅ Founded: 1983
- ✅ Headquarters: Mumbai, Maharashtra, India
- ✅ Market Capitalization: ₹3.86 lakh crore (as of March 2025)
- ✅ Global Presence: Over 100 countries
- ✅ Focus Areas: Oncology, Dermatology, Cardiology, Neurology, Diabetes, and more
- ✅ Acquisitions:
- 📌 Concert Pharmaceuticals (2023) – Boosted dermatology segment.
- 📌 Taro Pharmaceuticals (2010) – Strengthened global presence.
- 📌 Ranbaxy Laboratories (2015) – Major expansion in generic medicine.
Sun Pharma is well-known for its high-quality medicines at affordable prices, making healthcare accessible to millions. With its latest acquisition of Checkpoint Therapeutics, the company is aiming to capture a larger market share in oncology treatments globally.
Conclusion
The acquisition of Checkpoint Therapeutics is a major strategic move by Sun Pharma to dominate the specialty pharma market, particularly in oncology and onco-dermatology. With the addition of UNLOXCYT and potential upcoming treatments, Sun Pharma is positioning itself as a key player in the global cancer treatment space.
If the regulatory approvals are cleared, the deal is expected to close by Q2 2025, further boosting Sun Pharma’s growth in the high-demand oncology sector. Investors and market analysts are optimistic about Sun Pharma’s future performance after this acquisition.
