pharmaceutical giant Eli Lilly and Co. has announced its acquisition of Point Biopharma Global for a substantial $1.4 billion. The deal, disclosed by the companies on Tuesday, provides Lilly with access to cutting-edge experimental therapies designed to precisely target cancer cells.
Eli Lilly’s proactive approach to enhancing its product pipeline, especially in the realm of cancer therapeutics, has been evident in a series of recent smaller-scale transactions. This latest acquisition aligns with the company’s broader strategy to fortify its foothold in the oncology sector, notably with its established cancer therapy, Alimta.
Point Biopharma is presently in the advanced stages of testing two promising radioligand therapy candidates, PNT2002 and PNT2003. PNT2002, developed in partnership with Lantheus Holdings, is slated to unveil its late-stage data later this quarter. This candidate is poised to contend with Novartis’ Pluvicto, a radioligand therapy for prostate cancer approved in the U.S. in 2022. Meanwhile, PNT2003 targets an exceedingly rare form of digestive tract cancer.
Shareholders of Point Biopharma are set to receive $12.50 per share, reflecting an impressive 87% premium over the stock’s most recent closing price. This news prompted an immediate 85% surge in Point Biopharma’s shares during premarket trading.
In addition to gaining access to these groundbreaking therapies in development, Eli Lilly will also take control of the state-of-the-art radiopharmaceutical manufacturing facility of Point Biopharma in Indianapolis, along with a robust research and development center located in Toronto. The transaction is anticipated to be finalized by the close of the year 2023.
This acquisition stands as a testament to Eli Lilly’s commitment to fortify its position in the market. With its stalwart Alimta facing escalating competition from generic alternatives, the company is placing a substantial bet on the potential blockbuster drug tirzepatide, also known as Mounjaro, to fuel future growth.
This move follows a series of strategic acquisitions this year, including the $2.4 billion acquisition of Dice Therapeutics and the $1.93 billion purchase of privately held Versanis. Eli Lilly and Co. remains vigilant for additional opportunities that could further enhance its product pipeline and chart a course for the company’s future prosperity. The acquisition of Point Biopharma Global is a significant stride in that direction.