Eli Lilly’s M&A trial prints lose-lose outcome

POINT Biopharma Global

21/11/2023 15:11

(The author is a Reuters Breakingviews columnist. The opinions
expressed are his own.)
    By Jonathan Guilford
       NEW YORK, Nov 21 (Reuters Breakingviews) - The pharma
giant has offered $1.4 bln for Point Biopharma, but if the
target’s latest drug comes good it could be worth much more. No
wonder Point investors are sitting on their hands. Had Lilly
offered them a share of future profit, it could have saved
itself the embarrassment.
    Full view will be published shortly.
    Follow @JMAGuilford on X
    
    CONTEXT NEWS
Eli Lilly said on Nov. 17 that it had agreed to acquire Point
Biopharma Global, a developer of radiation therapies that
selectively target certain cells, in a $1.4 billion all-cash
deal.
    Hedge fund BVF Partners, which holds a 16.5% stake in Point,
on Nov. 6 disclosed in a filing that it opposed the sale, saying
that agreeing to an acquisition by Lilly ahead of impending
results from a clinical trial for a therapy targeting prostate
cancer is not in the best interest of shareholders.
    The results from the phase 3 trial are expected before the
end of the year. Lilly is obliged to extend its tender offer for
Point’s shares five times for 10 working days each, to Jan. 27
at the latest. Further extensions would have to be mutually
agreed.
    Lilly on Nov. 17 announced one such extension, and said only
26.5% of shareholders had tendered into its offer.

 (Editing by John Foley and Aditya Sriwatsav)
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