Eli Lilly to buy cancer-focused Point Biopharma for $1.4 billion
Business
Eli Lilly to buy cancer-focused Point Biopharma for $1.4 billion
(Reuters) - Eli Lilly and Co (LLY.N) will buy Point Biopharma Global (PNT.O) for $1.4 billion, the companies said on Tuesday, gaining access to experimental therapies that enable precise targeting of cancer.
Lilly has been bolstering its pipeline through small deals as its cancer therapy Alimta faces fierce competition from copycat versions while betting on potential blockbuster drug tirzepatide, or Mounjaro, to drive growth.
The company's acquisitions this year include the $2.4 billion buyout of Dice Therapeutics and the $1.93 billion purchase of privately held Versanis.
Point Biopharma is currently testing radioligand therapy candidates, PNT2002 and PNT2003, in late-stage studies. The experimental therapies combine radioactive particles that kill cells with molecules that attach themselves to the tumors.
Lilly has offered $12.50 per Point Biopharma share held, representing a premium of about 87% to the stock's last close.
Shares of Indiana-based Point Biopharma soared 85% in premarket trading.
Point Biopharma is testing PNT2002 in patients with an advanced form of prostate cancer whose disease has worsened after hormone therapy. Late-stage data from PNT2002 is expected this quarter.
PNT2002, which Point Biopharma is developing along with Lantheus Holdings (LNTH.O), is expected to compete with Novartis' (NOVN.S) radioligand therapy for prostate cancer, Pluvicto, which is available in the U.S. since 2022.
The deal will also add PNT2003, Point Biopharma's experimental candidate for a ultra-rare type of digestive tract cancer, to Lilly's portfolio, which includes breast cancer drug Verzenio and rare blood cancer drug Jaypirca.
The companies expect the deal to close by the end of 2023.
Lilly will also get access to Point Biopharma's Indianapolis manufacturing plant for radiopharmaceuticals, as well as a research and development center in Toronto.
