An Eli Lilly and Company pharmaceutical manufacturing facility is pictured at 50 ImClone Drive in Branchburg, New Jersey, March 5, 2021. Picture taken March 5, 2021. Portal/Mike Segar/File Photo Acquire License Rights
Oct 3 (Portal) – 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 control of cancer.
Lilly has bolstered its pipeline with small deals as its cancer drug Alimta faces stiff competition from copycats, while banking on potential blockbuster drug tirzepatide, or Mounjaro, to boost growth.
The company’s deals this year include its $2.4 billion acquisition of Dice Therapeutics and its $1.93 billion purchase of privately held Versanis.
Point Biopharma is currently testing the radioligand therapy candidates PNT2002 and PNT2003 in advanced studies. The experimental therapies combine radioactive particles that kill cells with molecules that attach to tumors.
Lilly offered $12.50 per Point Biopharma share held, a premium of about 87% to the stock’s last closing price.
Shares of Indiana-based Point Biopharma rose 85%, while Lilly’s stock fell about 3%.
Analysts see no regulatory risk because the companies are not developing overlapping therapies.
“Given the inherent complexity associated with the radiopharmaceutical supply chain, we believe Point’s manufacturing expertise was an important consideration for Lilly,” said William Blair analyst Andy Hsieh.
Lilly will also gain access to Point Biopharma’s radiopharmaceutical manufacturing facility in Indianapolis.
Point Biopharma is testing PNT2002 in patients with an advanced form of prostate cancer whose disease has worsened after hormone therapy. Late data from PNT2002 is expected this quarter.
PNT2002 is expected to compete with Novartis’ (NOVN.S) radioligand therapy Pluvicto for prostate cancer, which has been available in the United States since 2022.
The agreement also adds PNT2003, Point Biopharma’s experimental candidate for an extremely rare type of digestive tract cancer, to Lilly’s oncology pipeline.
Point Biopharma has licensed both late-stage experimental therapies to Lantheus Holdings (LNTH.O) since 2022.
A Lantheus spokesman said the company’s commercial rights remain intact and the collaboration with Point Biopharma is proceeding as expected.
Reporting by Leroy Leo and Bhanvi Satija in Bengaluru; Editing by Sriraj Kalluvila
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