Lilly Pursues Targeted Cancer Therapies through $1.4 Billion Point Biopharma Agreement, According to Reuters
Eli Lilly Acquires Point Biopharma for $1.4 Billion
Eli Lilly and Company has announced its plan to acquire Point Biopharma Global for $1.4 billion, a move aimed at enhancing its portfolio with innovative cancer-targeting therapies.
As Lilly strives to strengthen its research and development pipeline, it faces significant competition for its cancer medication Alimta from generic versions. The company is also placing its hopes on tirzepatide, marketed as Mounjaro, as a potential breakthrough product to drive future growth.
Recent acquisitions by Lilly include a $2.4 billion deal for Dice Therapeutics and a $1.93 billion purchase of the privately held Versanis.
Point Biopharma is conducting advanced studies on its radioligand therapy candidates, PNT2002 and PNT2003, which utilize radioactive particles to target and destroy cancer cells while attaching to tumors.
Lilly’s offer for Point Biopharma stands at $12.50 per share, representing an approximately 87% premium over the company’s previous closing price. Following the announcement, shares of Point Biopharma surged by 85%, while Lilly’s stock experienced a slight decline of around 3%.
Analysts anticipate minimal regulatory hurdles since there are no overlapping therapies between the two companies. William Blair analyst Andy Hsieh noted the importance of Point’s manufacturing capabilities, particularly regarding the complex supply chain issues associated with radiopharmaceuticals.
Additionally, Lilly will gain access to Point Biopharma’s manufacturing facility in Indianapolis, which specializes in radiopharmaceuticals.
Point Biopharma is currently testing PNT2002 in patients with advanced prostate cancer that has progressed following hormone therapy, with late-stage results expected in the near term. This candidate is anticipated to compete with Novartis’ radioligand therapy for prostate cancer, Pluvicto, which has been available in the U.S. since 2022.
Furthermore, the acquisition includes PNT2003, an experimental treatment targeting a rare form of digestive tract cancer, thus expanding Lilly’s oncology pipeline.
Point Biopharma has licensed both of its late-stage therapies to Lantheus since 2022. A spokesperson for Lantheus confirmed that their commercial rights remain unchanged, and their collaboration with Point Biopharma continues as planned.