Pharmaceutical giant Eli Lilly and Co announced on Tuesday that it has reached an agreement to acquire Point Biopharma Global, a move aimed at bolstering its portfolio of experimental cancer therapies. The deal, valued at $1.4 billion, marks another strategic step for Lilly as it seeks to expand its presence in the oncology market and reduce reliance on its established cancer therapy, Alimta.
The acquisition grants Lilly access to a promising array of experimental therapies designed to precisely target cancer cells. As the pharmaceutical industry becomes increasingly competitive, Lilly has been actively pursuing smaller deals to enhance its product pipeline and maintain its competitive edge.
Point Biopharma Global, based in Toronto, Canada, is currently in the late-stage development of two radioligand therapy candidates, PNT2002 and PNT2003. PNT2002, developed in partnership with Lantheus Holdings, is set to compete with Novartis’ radioligand therapy, Pluvicto, which received U.S. approval in 2022 for the treatment of prostate cancer. Late-stage data for PNT2002 is expected to be released later this quarter.
Meanwhile, PNT2003 is specifically being developed to target an ultra-rare form of digestive tract cancer, further diversifying Lilly’s oncology portfolio.
Shareholders of Point Biopharma will receive a generous offer of $12.50 per share, representing an 87% premium over the stock’s most recent closing price. The announcement of this agreement sent shares of Point Biopharma soaring by 85% during premarket trading.
In addition to gaining access to innovative therapies of Point Biopharma, Eli Lilly will also acquire Point Biopharma’s manufacturing facility for radiopharmaceuticals in Indianapolis, as well as a research and development center in Toronto. The company expects the transaction to be completed by the end of 2023.
This acquisition underscores Lilly’s commitment to seeking growth opportunities beyond its existing product lineup. As Alimta faces growing competition from generic versions, the pharmaceutical giant is placing a significant bet on the potential blockbuster drug tirzepatide, also known as Mounjaro, to drive future growth.
In the current fiscal year, Lilly has already completed several strategic acquisitions, including the $2.4 billion purchase of Dice Therapeutics and the $1.93 billion acquisition of privately held Versanis. The acquisition of Point Biopharma Global reinforces Lilly’s determination to fortify its pipeline and secure its position in the pharmaceutical industry.
As Eli Lilly continues its search for opportunities to expand its product portfolio and navigate an evolving market landscape, the acquisition of Point Biopharma Global is a substantial leap forward in that direction. Investors and industry experts will closely watch the developments and outcomes of this strategic move as the pharmaceutical giant aims to strengthen its foothold in the oncology sector and drive innovation in cancer therapy.
Source: Reuters
