October 03, 2023
Eli Lilly to enter the radioligand therapy field with the acquisition of POINT Biopharma.
Eli Lilly and POINT Biopharma Global have officially entered into a definitive agreement where Lilly will acquire POINT, a radiopharmaceutical firm renowned for its clinical and preclinical-stage radioligand therapies designed to treat cancer.
Radioligand therapy stands out for its ability to precisely target cancer by connecting a radioisotope to a targeting molecule, delivering radiation directly to cancer cells while minimizing harm to healthy tissue.
POINT is well-advanced in its development of lead programs. One such program, PNT20021, is a radioligand therapy that targets the prostate-specific membrane antigen (PSMA) and is intended for patients with metastatic castration-resistant prostate cancer (mCRPC) who have progressed despite hormonal treatment. The release of topline data from this study is expected by the end of this year. Another promising therapy, PNT20031, is designed to treat patients with gastroenteropancreatic neuroendocrine tumours (GEP-NETs) and targets somatostatin receptors (SSTR). In addition to these late-stage clinical developments, POINT has several other programs in earlier clinical and preclinical stages. The company operates a substantial 180,000-square-foot radiopharmaceutical manufacturing campus in Indianapolis and maintains a radiopharmaceutical research and development centre in Toronto. In conjunction with POINT's extensive supply chain partners, these facilities play a pivotal role in sourcing radioisotopes and their precursors.
In the process of acquiring POINT, Lilly will commence a tender offer with the intention of acquiring all outstanding shares of the company's stock, offering $12.50 per share in cash. The total value of this acquisition, upon its successful completion, is estimated to amount to roughly $1.4 billion. Importantly, it's worth noting that the transaction has garnered approval from the boards of directors of both companies and does not rely on financing conditions.
The anticipated timeline for its conclusion is expected to be by the close of 2023, subject to the fulfilment of standard closing conditions. These conditions include the tendering of a majority of POINT's common stock shares and the approval of license transfer from the U.S. Nuclear Regulatory Commission. After the tender offer's successful conclusion, Lilly will acquire any remaining POINT shares at the same rate as in the initial tender offer.
The purchase price at the closing represents an impressive premium of around 87% compared to POINT's closing stock price on October 2, 2023, which was the last trading day before the deal's announcement. Furthermore, it signifies a 68% premium compared to the 30-day volume-weighted average price.