Shares of Point Biopharma Global skyrocketed in premarket trading on Tuesday as the radiopharmaceutical company announced its acquisition by drugmaker Eli Lilly at a generous premium.
Eli Lilly will be paying a substantial $1.4 billion, equivalent to $12.50 per share, in cash for Point. This offer represents an impressive 87% increase over Monday’s closing price of $6.68.
Eli Lilly has been strategically bolstering its oncology arm, especially after its notable $8 billion acquisition of cancer-drug developer Loxo Oncology in 2019. With this acquisition, Eli Lilly gains access to next-generation radioligand therapies and secures a large radiopharmaceutical manufacturing campus spanning 180,000 square feet in Indianapolis, the company’s hometown.
Radioligand Therapy and Point’s Pipeline
Radioligand therapy offers a precise and targeted approach to cancer treatment by delivering radiation directly to cancer cells, minimizing harm to healthy surrounding tissue. Point Biopharma Global possesses an impressive pipeline of clinical and preclinical-stage radioligand therapies. Notably, their lead programs are in the late-phase development stage for prostate cancer and gastroenteropancreatic neuroendocrine tumors.
Surge in Share Price
As news of the acquisition spread, Point’s shares experienced a remarkable 85% surge, rising to $12.35 in premarket trading.
We will continue to monitor this exciting development as it unfolds.