Cancer drugmaker Checkpoint Therapeutics soars 60% amid market crash

Quotes on Checkpoint Therapeutics, a small-cap company specializing in cancer treatments, jumped more than 60% despite a massive selloff in the U.S. stock market yesterday, March 10. The surge came after the company announced that India's pharmaceutical giant Sun Pharma would acquire it at a premium. Checkpoint’s flagship product is Cosibelimab, an FDA-approved skin cancer treatment.

Yesterday, Checkpoint Therapeutics soared more than 60% to $3.98 per share even as the market sold off. The S&P 500 index, for example, fell 2.7%.

Investors rushed to buy Checkpoint shares on news of its acquisition by India's pharmaceutical giant Sun Pharmaceutical Industries. According to the companies’ joint statement, the deal is valued at $355 million. Upon completion of the transaction, Sun Pharma will acquire all outstanding Checkpoint shares, while Checkpoint shareholders will receive an upfront payment of $4.10 for each share they hold. This valuation represents a 66% premium to the closing price on March 7.

Under the terms of the deal, Checkpoint shareholders may also receive an additional $0.70 per share if the company’s cancer immunotherapy drug, Cosibelimab, is approved in the European Union or in key European markets within a specified timeframe. However, the companies did not disclose the exact deadlines.

Checkpoint is a U.S.-based biotech company focused on acquiring, developing, and commercializing novel treatments for patients with solid tumors. In December 2024, its drug UNLOXCYT (Cosibelimab-ipdl), designed to treat metastatic cancer, received approval from the U.S. FDA. The company is also working on Olafertinib (formerly known as CK-101), a drug that may offer a new therapeutic approach for patients with non-small-cell lung cancer.

Checkpoint started rising in November, hitting a high of $4.39 per share on November 29 amid anticipation of FDA approval for its drug. It then remained volatile over the following three months, dropping to a low of $2.38 per share on February 6. According to MarketWatch, the three analysts who cover Checkpoint unanimously rate it a “buy.” Their average target price is $12 per share.