Eli Lilly announces $1.4bn acquisition of POINT Biopharma in radiopharmaceutical domain

Eli Lilly and Company (NYSE: LLY) is set to acquire POINT Biopharma Global, Inc. (NASDAQ: PNT), a leading radiopharmaceutical firm, marking a significant leap in cancer treatment innovations. This acquisition integrates POINT Biopharma Global’s radioligand therapies, which precisely target cancer cells, promising enhanced tumor efficacy and minimized impact on healthy tissues.

POINT Biopharma Global’s cutting-edge therapies, PNT20021 and PNT20031, for metastatic castration-resistant prostate cancer (mCRPC) and gastroenteropancreatic neuroendocrine tumors (GEP-NETs) respectively, are in their advanced developmental stages. The expected topline data from the mCRPC study is slated for release in Q4 2023. Apart from these, POINT Biopharma Global is propelling several other programs, both clinical and preclinical. Their impressive 180,000-square-foot manufacturing campus in Indianapolis and the R&D center in Toronto further solidify their industry position.

Jacob Van Naarden, President of Loxo@Lilly, the oncology unit of Eli Lilly and Company, expressed immense optimism, emphasizing the potential of radiopharmaceuticals. He stated, “This acquisition signifies our commitment to cultivating a rich pipeline of radioligand treatments for challenging cancers. Welcoming POINT to the Lilly family, we aim to revolutionize cancer treatment methodologies.”

Eli Lilly announces $1.4bn acquisition of POINT Biopharma in radiopharmaceutical domain. Photo courtesy of Momoneymoproblemz/Wikimedia Commons.

CEO of POINT, Joe McCann, remarked on the collaboration’s potential to globalize radiopharmaceuticals. “Merging POINT’s capabilities with Lilly’s global prowess will fast-track the development of radiopharmaceuticals. Our alliance heralds a new era in global cancer treatment,” he commented.

Eli Lilly will kickstart a tender offer to procure all POINT Biopharma Global shares at $12.5 per share in cash, translating to a total of approximately $1.4 billion. This deal has received the green light from both companies’ boards. Scheduled for completion by late 2023, it awaits the standard closing conditions, including the majority share tender of POINT Biopharma Global and the U.S. Nuclear Regulatory Commission’s license transfer approval. The offer price represents an 87% premium to POINT Biopharma Global’s Oct. 2, 2023, stock price and a 68% jump to the 30-day volume-weighted average. POINT’s board is fervently advocating for stockholders to tender their shares.

Upon closing, the transaction will be classified either as a business combination or an asset acquisition as per GAAP, and will subsequently reflect in Lilly’s financial guidance and results.

Goldman Sachs & Co. LLC is representing Lilly as the exclusive financial advisor, with Kirkland & Ellis LLP serving as their legal counsel. For POINT Biopharma Global, Centerview Partners LLC and Skadden, Arps, Slate, Meagher & Flom LLP are functioning as financial advisor and legal counsel, respectively.