American pharmaceutical company Eli Lilly plans to acquire cancer therapy firm Point Biopharma Global, the companies announced Tuesday, an expansion that comes as manufacturers struggle to keep up with the challenges of producing modern cancer treatments.
Eli Lilly announced its plans to purchase Point Biopharma Global for $12.50 a share on Tuesday.
Eli Lilly is purchasing the radiopharmaceutical company for $1.4 billion, or $12.50 a share in cash, 87% higher than Point’s closing price on Monday, the company said.
Point is developing radioligand therapies, a form of cancer treatment that delivers radiation directly to cancer cells and limits damage to the healthy surrounding tissue, according to the announcement from Point and Eli Lilly.
Point is currently working on a drug called PNT2002 that aims to help advanced stage prostate cancer patients who are not responding to hormonal treatment.
Jacob Van Naarden, president of Eli Lilly’s oncology unit Loxo@Lilly, said the purchase is the “beginning” of Eli Lilly’s investment into medicines for hard-to-treat cancers.
The companies expect the deal to close by the end of the year.
$196 billion. That's how much people spent on cancer medicines in 2022, according to a Global Oncology Trends report from IQVIA. That number is expected to rise to $375 billion by 2027, IQVIA predicted.
Eli Lilly broadened its cancer research efforts in 2019 when it purchased Loxo Oncology for $8 billion. At the time, Eli Lilly CEO David Ricks told CNBC, the company wanted to grow its presence in oncology because “there’s so much exciting science for patients emerging in oncology to invest in.” Other companies like Novartis have already worked toward supplying more patients with radioligand therapy, but face a few obstacles, as the medicine is expensive to produce and has a very short shelf life, CNBC reported earlier this year.
Drug manufacturers are facing other issues when it comes to cancer drugs, including a massive shortage of generic drugs caused by leftover Covid supply chain issues. These cancer drugs are mainly produced overseas and drug manufacturers within the U.S. have little interest in producing them as they offer slim profit margins.
Eli Lilly To Buy Loxo Oncology For About $8 Billion In Cancer Drug Bet (CNBC)