Eli Lilly Expands Oncology Portfolio with $1.4 Billion Acquisition of POINT Biopharma
In a strategic move to strengthen its foothold in the rapidly evolving field of cancer therapeutics, Eli Lilly and Company has announced a definitive agreement to acquire POINT Biopharma, an Indianapolis-based pharma company building a platform for the clinical development and commercialization of radioligands that fight cancer. This acquisition, valued at approximately $1.4 billion in cash, reflects Lilly’s commitment to expanding its oncology portfolio amid a surge of radiopharmaceutical startups and a growing demand for innovative cancer treatments.
POINT Biopharma’s Radiopharmaceutical Expertise
POINT Biopharma specializes in the development of clinical and preclinical-stage radioligand therapies for cancer treatment. These novel therapies leverage radioligand technology, which facilitates precise targeting of cancer by linking a radioisotope to a targeting molecule that delivers radiation directly to cancer cells, enabling significant anti-tumor efficacy while minimizing impact on healthy tissues.
The company’s flagship programs, PNT2002 and PNT2003, are in late-phase development, targeting metastatic castration-resistant prostate cancer (mCRPC) and gastroenteropancreatic neuroendocrine tumors (GEP-NETs) respectively. Both therapies utilize lutetium-177, a beta-emitting radioisotope as the source of radiation. Beyond these, POINT has additional programs in various stages of development, supported by its state-of-the-art manufacturing facilities in Indianapolis and Toronto.
Terms of the Agreement and Future Prospects
Under the terms of the agreement, Eli Lilly will initiate a tender offer to acquire all outstanding shares of POINT Biopharma at $12.50 per share in cash. The total consideration for this acquisition amounts to approximately $1.4 billion, representing a substantial premium of 87% to POINT’s closing stock price on October 2, 2023. The transaction has received approval from the boards of both companies and is expected to close by the end of 2023, pending customary closing conditions and regulatory approvals.
Jacob Van Naarden, President of Loxo@Lilly, the oncology unit of Eli Lilly, expressed enthusiasm for the potential impact of radiopharmaceuticals on cancer treatment, despite the fact that this field is still in a nascent stage nowadays. He also described the acquisition of POINT Biopharma as a pivotal step in Lilly’s investment in developing meaningful radioligand medicines for challenging-to-treat cancers.
Joe McCann, CEO of POINT Biopharma, envisioned a future where cancer patients worldwide could benefit from the collaborative efforts of the two companies. With POINT’s expertise in radioligand therapies and Eli Lilly’s global resources, this groundbreaking combination holds promise for accelerating the discovery, development, and global accessibility of innovative radiopharmaceuticals, transforming the realm of oncology and cancer therapy.©www.geneonline.com All rights reserved. Collaborate with us: email@example.com