Point Biopharma Stock Nearly Doubles On Eli Lilly Deal

black android smartphone turned on screen

 Image Source: Unsplash
 

  • Eli Lilly is spending $1.4 billion on buying Point Biopharma Global Inc.
  • Point is a radiopharmaceutical company focused on cancer treatment.
  • Lilly valued Point Biopharma stock at an 87% premium on Tuesday.

Shares of Point Biopharma Global Inc. (Nasdaq: PNT) close to doubled this morning after Eli Lilly & Co (NYSE: LLY) announced plans to acquire the cancer treatment company.
 

Details of Lilly-Point agreement

Lilly is willing to pay about $1.4 billion for Point Biopharma which values each of its shares at $12.50 or at an 87% premium versus their previous close.

The Nasdaq-listed firm is expected to announce the 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 release today:

 

The combination could significantly accelerate the discovery, development and global access to radiopharmaceuticals.

The news arrived 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 be completed 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. The 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.


More By This Author:

Boohoo Share Price Forecast: The Plot Thickens For BOO
U.S. Steel Stock Named A Top Pick At Morgan Stanley
Tesla Reports A Sequential Decline In Quarterly Deliveries

Disclaimer: Invezz is a place where people can find reliable, unbiased information about finance, trading, and investing – but we do not offer financial advice and users should always ...

more
How did you like this article? Let us know so we can better customize your reading experience.

Comments