We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Lilly (LLY) to Buy POINT Biopharma, Strengthen Cancer Portfolio
Read MoreHide Full Article
Eli Lilly and Company (LLY - Free Report) announced a definitive agreement to acquire cancer drugmaker POINT Biopharma for approximately $1.4 billion in cash or $12.50 per share.
The per share purchase price represented a premium of around 87% to POINT Biopharma’s adjusted closing price on Monday.
POINT Biopharma makes next-generation radioligand therapies for treating hard-to-treat cancers. Radioligand therapy is a type of precision cancer treatment, which combines a targeting compound (ligand) with a therapeutic radioisotope (a radioactive particle). POINT Biopharma’s lead pipeline candidate is PNT2002, which is being developed to treat metastatic castration-resistant prostate cancer (mCRPC) after progression on hormonal treatment. The phase III SPLASH study on PNT2002 is complete and top-line data is expected in the fourth quarter of 2023.
Another candidate, PNT2003 is being developed for treating gastroenteropancreatic neuroendocrine tumors (GEP-NETs). While PNT2002 is a prostate-specific membrane antigen (PSMA) targeted radioligand therapy, PNT20031 is a somatostatin receptor (SSTR) targeted radioligand therapy. Another key pipeline candidate is PNT2004, a pan-cancer program, in phase I development.
Shares of POINT Biopharma soared around 85% in pre-market trading on Tuesday. POINT Biopharma’s stock has risen 69.5% year to date against 17.6% decline of the industry.
Image Source: Zacks Investment Research
However, Lilly’s shares declined 2.4% on Tuesday as investors probably found the deal expensive. Lilly’s stock has risen 43.6% year to date compared with an increase of 4.2% of the industry.
Image Source: Zacks Investment Research
The transaction has been approved by the boards of directors of both companies and is expected to close by the end of the year.
The acquisition of POINT Biopharma, if successfully closed, will further boost Lilly’s oncology portfolio, which was strengthened by the $8 billion acquisition of Loxo Oncology in 2019. The acquisition of Loxo Oncology added cancer drugs, Retevmo and Jaypirca. Jaypirca/pirtobrutinib, a BTK inhibitor, was approved for mantle cell lymphoma (MCL) in the United States in January 2023, while it is under review in Europe for the same indication. The FDA’s decision on Jaypirca for another indication, chronic lymphocytic leukemia, is expected later this year. Retevmo is approved for advanced RET-driven lung and thyroid cancers.
Novartis (NVS - Free Report) is another company that has invested extensively in radioligand therapy. In March 2022, the FDA approved Novartis’ Pluvicto as the first targeted radioligand therapy for the treatment of progressive, PSMA-positive mCRPC. Novartis also has another radioligand therapy, Lutathera, approved for treating SSTR-positive GEP-NETs, in its portfolio. Novartis is also evaluating a broad portfolio of radioligand therapies, exploring their treatment potential in a range of advanced cancers beyond prostate and GEP-NET, including lung, breast, pancreatic and colon cancer.
In the past 60 days, the consensus estimate for Alpine Immune Sciences’ 2023 loss has narrowed from $1.43 per share to $1.18 per share, while that for 2024 has narrowed from $1.73 per share to $1.47 per share. Year to date, shares of Alpine Immune Sciences have rallied 57.5%.
ALPN’s earnings beat estimates in two of the trailing four quarters and missed the mark in the other two, delivering an average negative earnings surprise of 79.65%.
Unique Zacks Analysis of Your Chosen Ticker
Pick one free report - opportunity may be withdrawn at any time
Image: Bigstock
Lilly (LLY) to Buy POINT Biopharma, Strengthen Cancer Portfolio
Eli Lilly and Company (LLY - Free Report) announced a definitive agreement to acquire cancer drugmaker POINT Biopharma for approximately $1.4 billion in cash or $12.50 per share.
The per share purchase price represented a premium of around 87% to POINT Biopharma’s adjusted closing price on Monday.
POINT Biopharma makes next-generation radioligand therapies for treating hard-to-treat cancers. Radioligand therapy is a type of precision cancer treatment, which combines a targeting compound (ligand) with a therapeutic radioisotope (a radioactive particle). POINT Biopharma’s lead pipeline candidate is PNT2002, which is being developed to treat metastatic castration-resistant prostate cancer (mCRPC) after progression on hormonal treatment. The phase III SPLASH study on PNT2002 is complete and top-line data is expected in the fourth quarter of 2023.
Another candidate, PNT2003 is being developed for treating gastroenteropancreatic neuroendocrine tumors (GEP-NETs). While PNT2002 is a prostate-specific membrane antigen (PSMA) targeted radioligand therapy, PNT20031 is a somatostatin receptor (SSTR) targeted radioligand therapy. Another key pipeline candidate is PNT2004, a pan-cancer program, in phase I development.
Shares of POINT Biopharma soared around 85% in pre-market trading on Tuesday. POINT Biopharma’s stock has risen 69.5% year to date against 17.6% decline of the industry.
Image Source: Zacks Investment Research
However, Lilly’s shares declined 2.4% on Tuesday as investors probably found the deal expensive. Lilly’s stock has risen 43.6% year to date compared with an increase of 4.2% of the industry.
Image Source: Zacks Investment Research
The transaction has been approved by the boards of directors of both companies and is expected to close by the end of the year.
The acquisition of POINT Biopharma, if successfully closed, will further boost Lilly’s oncology portfolio, which was strengthened by the $8 billion acquisition of Loxo Oncology in 2019. The acquisition of Loxo Oncology added cancer drugs, Retevmo and Jaypirca. Jaypirca/pirtobrutinib, a BTK inhibitor, was approved for mantle cell lymphoma (MCL) in the United States in January 2023, while it is under review in Europe for the same indication. The FDA’s decision on Jaypirca for another indication, chronic lymphocytic leukemia, is expected later this year. Retevmo is approved for advanced RET-driven lung and thyroid cancers.
Novartis (NVS - Free Report) is another company that has invested extensively in radioligand therapy. In March 2022, the FDA approved Novartis’ Pluvicto as the first targeted radioligand therapy for the treatment of progressive, PSMA-positive mCRPC. Novartis also has another radioligand therapy, Lutathera, approved for treating SSTR-positive GEP-NETs, in its portfolio. Novartis is also evaluating a broad portfolio of radioligand therapies, exploring their treatment potential in a range of advanced cancers beyond prostate and GEP-NET, including lung, breast, pancreatic and colon cancer.
Zacks Rank & Stock to Consider
Lilly and POINT Biopharma have a Zacks Rank #3 (Hold) each. A better-ranked drug/biotech company worth considering is Alpine Immune Sciences (ALPN - Free Report) , which has a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
In the past 60 days, the consensus estimate for Alpine Immune Sciences’ 2023 loss has narrowed from $1.43 per share to $1.18 per share, while that for 2024 has narrowed from $1.73 per share to $1.47 per share. Year to date, shares of Alpine Immune Sciences have rallied 57.5%.
ALPN’s earnings beat estimates in two of the trailing four quarters and missed the mark in the other two, delivering an average negative earnings surprise of 79.65%.