Eli Lilly to Complete $1.4 Billion Acquisition of Point Biopharma on Wednesday

Intelligent Finance APP learned that pharmaceutical giant Eli Lilly (LLY.US) is expected to complete the $1.4 billion acquisition of radiopharmaceutical company POINT Biopharma (PNT.US) on Wednesday, following the completion of its tender offer for POINT Biopharma.

It is understood that a "tender offer" refers to a proposal by a company to directly offer to purchase shares held by shareholders of another company at a specific price. Completing this process means that Eli Lilly has successfully purchased enough shares of POINT Biopharma Global Inc. to meet the conditions stipulated in the acquisition agreement.

According to a document on Tuesday, 67.97% of the issued and outstanding shares of POINT Biopharma were tendered in the offer, which was not extended. After completing the transaction at $12.50 per share, POINT Biopharma's shares will be delisted from Nasdaq.

Notably, Lantheus Holdings (LNTH.US) and POINT Biopharma Global Inc. released the Phase III clinical data of their drug PNT2002 a week ago. PNT2002 is the leading candidate for second-line treatment of prostate cancer. These results disappointed investors, causing Lantheus' stock price to plummet by 27% last Monday, while POINT fell by 11%.

Moreover, the acquisition offer from POINT Biopharma Global Inc. has been extended multiple times as some investors, anticipating higher returns, have decided to hold onto their shares for now. They are hoping that if the trial results of PNT2002 are positive, Eli Lilly and Company might increase the acquisition price from $12.50 per share.