Checkpoint Thera leaps on Sun Pharma takeover bid

Indian drug major Sun Pharmaceutical Industries (BSE: 524715) has entered an agreement with  Checkpoint Therapeutics (Nasdaq: CKPT) to acquire the US immunotherapy and targeted oncology company, with the news sending the latter’s shares rocketing more than 65% to $4.06 this morning.

Checkpoint has received approval from the US Food and 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.

Following approval of Unloxcyt, analysts at HC Wainwright suggested that given the drug's "significant economic upside" - coupled with Checkpoint's pipeline - a "full company acquisition is ideal, and the most likely, scenario." The pharma's pipeline includes the third-generation EGFR inhibitor olafertinib (formerly CK-101) for EGFR-positive non–small-cell lung cancer, as well as earlier-stage drugs targeting BET, GITR and CAIX.