Why Is Cancer Treatment Focused POINT Biopharma Stock Trading Higher Today?

Eli Lilly And Co LLY agreed to acquire POINT Biopharma Global Inc PNT at $12.50 per share in cash, an aggregate of approximately $1.4 billion.

POINT Biopharma is a radiopharmaceutical company with a pipeline of clinical and preclinical-stage radioligand therapies in development for cancer. 

Radioligand therapy can precisely target cancer by linking a radioisotope to a targeting molecule that delivers radiation directly to cancer cells, enabling significant anti-tumor efficacy while limiting the impact on healthy tissue.

Also Read: FDA Declines To Approve Eli Lilly's Eczema Drug.

POINT's lead programs are in late-phase development. 

PNT20021 is a prostate-specific membrane antigen (PSMA) targeted radioligand therapy in development for patients with metastatic castration-resistant prostate cancer (mCRPC) after progression on hormonal treatment. 

Topline data from this study are expected in the fourth quarter of 2023. 

PNT20031 is a somatostatin receptor-targeted radioligand therapy in development for gastroenteropancreatic neuroendocrine tumors. The transaction is expected to close near the end of 2023.

The purchase price payable at closing represents a premium of approximately 87% to POINT's closing stock price on Oct. 2, 2023, the last trading day before the announcement, and 68% to the 30-day volume-weighted average price. 

Price Action: PNT shares are up 84.35 at $12.32, and LLY stock is down 0.22% at $537.13 during the premarket session on the last check Tuesday.