What happened
Shares of Point Biopharma Global (PNT) were up by more than 85% as of 11:45 a.m. ET on Tuesday after the healthcare company entered into a buyout agreement. The stock is up more than 70% this year.
So what
Point Biopharma is a clinical-stage company that focuses on therapies that bind to cells to fight cancer. On Tuesday, Eli Lilly agreed to pay roughly $1.4 billion to buy the company. The deal, set at $12.50 a share, represents a premium of roughly 87% to Point's closing price on Monday and 68% to the 30-day volume-weighted average price.
Point's board was unanimous in recommending that the company's stockholders agree to the deal, which is expected to close by the end of this year.
Now what
Point's therapies look to target cancer cells by connecting a radioisotope to a target molecule that sends the radiation directly into tumor cells while hopefully limiting the impact to nearby healthy tissue. Jacob Van Naarden, president of the oncology unit of Lilly, said he sees great potential in helping with hard-to-treat cancers.
Point has seven programs in its pipeline, with the lead candidate prostate cancer drug PNT2002, which it developed in collaboration with Lantheus Holdings. The therapy is in a phase 3 clinical trial with topline results expected in the fourth quarter. The drug received fast-track designation in April from the Food and Drug Administration for the treatment of metastatic castration-resistant prostate cancer.
As of the second quarter, Point said it had no revenue, $25.4 million in losses, and $434.8 million in cash, enough to fund operations into 2026.
