Sun Pharma Shares Soar After ₹3,000 Crore Acquisition Of US-Based Biotech Company

Sun Pharma shares rose like the sun in the intraday trade on Tuesday, as the company shares surged by over 2 per cent in the first half of the day's trade.

Sun Pharma Acqusition

This came to pass after a landmark acquisition of US-based biotech company Checkpoint Therapeutics.

Sun Pharma acquired the Massachusetts-based company for a staggering USD 355 million or about Rs 3,099 crore.

The Mumbai-based pharma company will make an upfront cash payment of USD 4.1 per share. In addition to that, upon reaching a milestone, shareholders will earn a contingent value right up to USD 0.7 per share.

Sun Pharma Shares On The Rise

As a result of this, the company shares zoomed on Tuesday, increasing by over 2 per cent. The company shares started on a positive note, opening at Rs 1,616.10, higher than yesterday's closing.

The company shares jumped to the day's high point of Rs 1,660.65 per share before appearing down slightly.

At the time of writing, the company shares stood at Rs 1,651.55 per piece, having made gains of 2.49 per cent or Rs 40.05.

In the past five days of trading, which also includes gains made in the previous week, the company shares have risen by a cumulative 5.37 per cent or Rs 84.15.

In a statement on the milestone acquisition, Dilip Shanghvi, Chairman & Managing Director of Sun Pharma, said, "Combining UNLOXCYT, an FDAapproved anti-PD-L1 treatment for advanced cutaneous squamous cell carcinoma, with Sun Pharma’s global presence means patients with cSCC may soon have access to an important, new treatment option. The acquisition further bolsters our innovative portfolio in onco-derm therapy."

“I am proud of the dedication and passion of our team at Checkpoint that allowed us to achieve the first and only FDA-approved anti-PD-L1 treatment for patients with advanced cSCC, and we are excited to enter this transaction with Sun Pharma as the next step to bringing UNLOXCYT to cSCC patients in need of a differentiated immunotherapy treatment option,” said James Oliviero, President and Chief Executive Officer of Checkpoint.

This surge in the company shares comes at a time, when the overall markets have wavered, and are trading with cuts. The fear of uncertainty and a looming recession has added to the woes of businesses and by extension, the equity markets.