Fortress Biotech Completes Sale of Checkpoint Therapeutics to Sun Pharma
Deal News | May 30, 2025 | Globenewswire
Fortress Biotech has announced the closure of its sale of the subsidiary Checkpoint Therapeutics to Sun Pharmaceutical Industries. The deal was completed on May 30, 2025, after a special meeting of Checkpoint's stockholders approved the transaction. This strategic move is significant for Fortress Biotech, as it is set to receive approximately $28 million and a 2.5% royalty on net sales of the Checkpoint's product, UNLOXCYT. Additionally, there is the potential for an extra $4.8 million based on certain contingent value rights. Sun Pharma now takes control of Checkpoint’s drug for advanced cutaneous squamous cell carcinoma across its extensive global network. Fortress Biotech's CEO, Lindsay Rosenwald, highlights this as part of their ongoing strategy to enhance shareholder value. Looking forward, Fortress anticipates further achievements, notably with another subsidiary, Cyprium Therapeutics, which might receive a Priority Review Voucher if its drug CUTX-101 is FDA-approved. The company remains open to further business development prospects while continuing to push its developmental pipeline.
Sectors
- Biopharmaceuticals
- Mergers & Acquisitions
Geography
- United States – Fortress Biotech and Checkpoint Therapeutics are based in the U.S., and the FDA approval of UNLOXCYT pertains to the U.S. market.
- India – Sun Pharmaceutical Industries, the acquiring company, is an India-based multinational focusing on pharmaceuticals.
Industry
- Biopharmaceuticals – The article deals with biopharmaceutical companies focused on drug development, commercialization, and strategic transactions.
- Mergers & Acquisitions – The focus of the article is on the acquisition of Checkpoint Therapeutics by Sun Pharmaceutical Industries, marking a key M&A activity.
Financials
- $28 million – The immediate payment Fortress Biotech will receive from the sale of Checkpoint Therapeutics.
- 2.5% royalty – Future royalties on net sales of Checkpoint's cancer drug UNLOXCYT which Fortress Biotech will receive.
- $4.8 million – An additional amount Fortress Biotech could receive if the contingent value right (CVR) is met.
- $4.10 per share – Cash offered per share for Checkpoint stockholders by Sun Pharma.
- $0.70 per share – Additional potential payment per share if certain regulatory milestones are reached in Europe.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Fortress Biotech, Inc. | Seller | Company | An innovative biopharmaceutical company focused on acquiring and advancing assets to enhance long-term value for shareholders. |
| Checkpoint Therapeutics, Inc. | Target Company | Company | A Fortress-founded subsidiary involved in developing cancer therapies, specifically known for its drug UNLOXCYT. |
| Sun Pharmaceutical Industries Limited | Buyer | Company | A global multination pharmaceutical company based in India that acquired Checkpoint Therapeutics to expand its oncology portfolio. |
| Lindsay A. Rosenwald, M.D. | Chairman, President and CEO | Person | He is the Chairman, President, and CEO of Fortress Biotech, providing statements on the implications of the transaction. |