Point Biopharma Global (PNT) -) shares soared in premarket trading after the radiation-therapies experts agreed to a $1.4 billion takeover by pharma giant Eli Lilly (LLY) -).
Eli Lilly said it will pay $12.50 per share in cash for Indianapolis, Indiana-based Point Biopharma, an 87% premium to the group's Monday closing share price
The deal adds to Eli Lilly's growing oncology portfolio, which was jump-started in 2019 with the $8 billion takeover of cancer treatment specialists Loxo Oncology
"Over the past few years, we have seen how well-designed radiopharmaceuticals can demonstrate meaningful results for patients with cancer and rapidly integrate into standards of care, yet the field remains in the early days of the impact it may ultimately deliver," said Eli Lilly's Jacob Van Naarden, who heads the group's oncology unit and was formerly COO of Loxo. "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."
"We look forward to welcoming POINT colleagues to Lilly and working together to build upon their achievements as we develop a pipeline of meaningful new radioligand treatments for patients," he added.
Point Biopharma shares were marked 84.45% higher in pre-market trading following news of the takeover to indicate an opening bell price of $12.35 each.
Eli Lilly shares, meanwhile, slipped 0.05% to $538.00 each.
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