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Checkpoint Therapeutics , Inc. (NASDAQ:CKPT), whose stock delivered an impressive 125.4% return over the past year according to InvestingPro, announced today the completion of its acquisition by Sun Pharmaceutical (TADAWUL:2070) Industries, Inc., marking a significant change in control for the pharmaceutical company. The transaction was finalized on May 30, 2025, with Checkpoint Therapeutics, valued at approximately $357 million by market capitalization, becoming a wholly-owned subsidiary of Sun Pharma.
As part of the agreement, each share of Checkpoint’s common stock was converted into the right to receive $4.10 in cash and one contingent value right (CVR), which entitles the holder to a potential future cash payment of up to $0.70 based on the achievement of a specific milestone. The deal price represents a slight discount to CKPT’s current trading price of $4.26, which sits near its 52-week high of $4.50. The total consideration for the merger was funded through Sun Pharma’s available cash on hand.Want deeper insights into company valuations and market trends? InvestingPro offers exclusive access to advanced financial metrics and real-time analysis tools.
The CVR is tied to the regulatory approval of UNLOXCYT™ in the European Union or specific European countries, with varying payment amounts depending on the timing and dosing schedule approval. The milestone must be achieved by a set deadline, with no guarantee that such a milestone will be met or that any payments will be made.
Concurrent with the merger’s completion, Checkpoint’s existing directors and officers have resigned, and Sun Pharma’s appointees have assumed their roles. Additionally, as a result of the acquisition, Checkpoint’s common stock will no longer be listed on NASDAQ, and the company intends to cease its reporting obligations under the SEC.
The acquisition has led to the termination of certain previous agreements, including the Founders Agreement and the Management Services Agreement with Fortress Biotech (NASDAQ:FBIO), Inc., and the Board Advisory Services Agreement with Caribe BioAdvisors, LLC, due to the departure of Michael S. Weiss from Checkpoint’s board of directors.
This strategic move is expected to enhance Sun Pharma’s portfolio, with InvestingPro data showing Checkpoint’s revenue forecast growth of over 1,700% for FY2025. While the company has maintained a healthy current ratio of 1.91, indicating strong short-term liquidity, analysts remain cautious about its overall financial health. The company has not provided any forward-looking statements regarding the impact of the acquisition on its financial position or market performance.
The information for this article is based on a press release statement.
In other recent news, Checkpoint Therapeutics has moved closer to completing its merger with Sun Pharmaceutical Industries. Shareholders of Checkpoint Therapeutics voted in favor of the merger, with the approval meeting the necessary majority requirements. The merger will result in Checkpoint becoming a wholly owned subsidiary of Sun Pharma. Additionally, the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act expired on May 21, 2025, satisfying a key condition for the merger’s completion, which is expected around May 30, 2025. Another development includes the dismissal of a consolidated stockholder class action lawsuit against Checkpoint and its CEO, James Oliviero, which had alleged violations of securities laws. This dismissal was with prejudice, although the plaintiff has 30 days to appeal the decision. Checkpoint’s management has noted that forward-looking statements are subject to risks and uncertainties. The company has filed relevant documents with the SEC, providing further details about the merger.
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