India's largest pharmaceutical company has agreed to acquire Checkpoint Therapeutics (CKPT.US) for $355 million.

India's largest pharmaceutical company, Sun Pharmaceutical Industries, has agreed to buy US immunotherapy and oncology company Checkpoint Therapeutics (CKPT.US) for $355m upfront to strengthen its specialty treatment portfolio. Sun Pharma will buy Checkpoint's issued shares at $4.10 each, Checkpoint said in a Monday filing to the exchange. The filing added that the company would also exercise an irrevocable or valuable right to receive up to $0.70 in cash per share under certain conditions.

This is Sun Pharma's second acquisition in less than three months as it seeks to rapidly diversify beyond generic drugs and build a portfolio of new therapies. The US, the world's largest pharmaceutical market, contributed about a third of Sun Pharma's revenue as of March 31, 2024.

Checkpoint's therapy UNLOXCYT has been approved by the US Food and Drug Administration for the treatment of adult metastatic squamous cell carcinoma of the skin (cSCC), the second most common skin cancer in the US. The company said about 180,000 cSCC cases occur annually in the US, of which about 40,000 cases become severe.

Dilip Shanghvi, chairman of Sun Pharmaceutical, said in a statement: "Patients with cSCC may soon have a new important treatment option. This acquisition further strengthens our innovative portfolio in skin cancer treatment."

Sun Pharma said the $4.10 upfront payment was 66 per cent higher than Checkpoint's closing price on Friday. The transaction is expected to be completed in June 2025.