Pharmaceutical giant Eli Lilly (ticker: LLLY) announced its plans to acquire radiopharmaceutical company Point Biopharma Global for a staggering $1.4 billion. This strategic move aims to expand Eli Lilly’s presence in the realm of radioligand medicines for challenging cancer treatments.
Tender Offer Details
Eli Lilly will initiate a tender offer to acquire all outstanding shares of Point Biopharma (PNT) for $12.50 per share. This offer represents an impressive 87% premium over Point Biopharma’s closing price of $6.69 on Monday.
Fostering Medical Advancements
Jacob Van Naarden, the president of Eli Lilly’s oncology unit, expressed enthusiasm about this pivotal acquisition, stating, “We are excited by the potential of this emerging modality and see the acquisition of Point as the beginning of our investment in developing multiple meaningful radioligand medicines for hard-to-treat cancers, as we have done in small molecule and biologic oncology drug discovery and development.”
Approval and Closing Date
The transaction has received the necessary approvals from the boards of both companies. The completion of this acquisition is expected by the end of 2023.
Market Reaction
Upon the announcement, shares of Point Biopharma experienced a remarkable 84% surge during premarket trading on Tuesday, reaching $12.39. Meanwhile, Eli Lilly stock remained stable at $538.23.