This post was originally published on this site
https://i-invdn-com.investing.com/trkd-images/LYNXMPEJB30DX_L.jpg
Lilly set Dec. 15 as the deadline in a third extension. The Indianapolis-based drugmaker maintained its offer price at $12.50 per share, which is over 10% lower than Point Biopharma’s last closing price of $13.80.
Lilly had struck a $1.4 billion deal to buy Point Biopharma in October. Since then till Friday’s close, shares of Point Biopharma have more than doubled.
Biotechnology Value Fund, a private investment firm which owns 16.4% of Point Biopharma, had said in a filing last month that closing the deal ahead of imminent results from a late-stage study of a key drug candidate was “not in the best interest” on the company’s shareholders.
As of Friday 5 p.m. ET, about 26.4 million shares had been validly tendered, representing only 24.75% of the issued and outstanding shares of Point Biopharma, Lilly said on Monday. The participation was lower than the 26.45% as of Nov. 16.
Shares of Point Biopharma were down 0.1% at $13.76 in early trading, while Lilly also traded marginally lower.
Point Biopharma is a developer of radioligand therapy, a targeted cancer treatment which uses a combination of molecules that attach themselves to the tumors and radioactive particles that kill the specific cells.
The company expects results from its late-stage study of experimental therapy, PNT2002, to treat a type of advanced prostate cancer later this month.
TD Cowen analyst Boris Peaker estimated there is a 60% chance of positive results from the study, which is likely to lift the stock further.
Lilly will then need to raise its offer, with a second bidder also likely, Peaker said in a note last month.
