LLY - Point Biopharma stock nearly doubles on Eli Lilly deal
2023-10-03 10:29:23 ET
Shares of Point Biopharma Global Inc (NASDAQ: PNT) close to doubled this morning after Eli Lilly & Co (NYSE: LLY) announced plans of acquiring the cancer treatment company.
Details of Lilly-Point agreement
Lilly is willing to pay about $1.4 billion for Point Biopharma that values each of its share at $12.50 or at an 87% premium versus their previous close.
The Nasdaq-listed firm is expected to announce results of a Phase III trial of PNT2002 (prostate cancer treatment) before the end of this year. Joe McCann – its Chief Executive said in a press re l ease today:
The combination could significantly accelerate the discovery, development and global access to radiopharmaceuticals.
The news arrives only a few months after Eli Lilly & Co said it was spending $1.925 billion on buying Versanis Bio to expand its footprint in obesity drugs.
Deal to close by the end of 2023
Lilly expects this transaction to complete before the start of 2024 provided that it satisfies the customary closing conditions including shareholders’ approval.
Reacting to the agreement announced today, Faisal Khurshid – a Leerink Partners analyst said the pharmaceutical behemoth has valued Point Biopharma stock at our “best-case scenario” after the PNT2002 data.
Goldman Sachs and Centerview Partners are serving as exclusive financial advisors of Eli Lilly & Co and Point Biopharma Global Inc on the all deal, respectively. Boards of both companies have already approved the all-cash transaction.
Lilly is expected to report its Q3 financial results in early November. Consensus is for it to earn $2.88 per share versus $1.98 a share last year. Shares of the New York listed firm are in the red at writing.
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