Checkpoint Therapeutics Shareholders: Investigating Sale to Sun Pharma and Potential Conflicts
On March 9, 2023, Checkpoint Therapeutics, Inc. (Nasdaq: CKPT) announced a significant agreement with Sun Pharmaceutical Industries, Inc., wherein shareholders are set to receive $4.10 per share in cash, amounting to a total of $355 million for the company. This deal comes on the heels of Checkpoint's recent FDA approval for its cancer treatment drug, cosibelimab-ipdl (marketed as UNLOXCYT). While the approval reflects an important milestone for Checkpoint, it has also sparked concerns regarding the potential implications of this sale for its shareholders.
Checkpoint Therapeutics, a firm dedicated to creating innovative therapies for solid tumor cancers, is under the control of Fortress Biotech, Inc. (Nasdaq: FBIO), which may be advantageous in this deal. However, stakeholders are voicing apprehensions about conflicts of interest surrounding Fortress Biotech’s role in the transaction. Julie & Holleman LLP, a law firm specializing in shareholder advocacy, has stepped in to investigate the legality and fairness of the proposed acquisition.
The law firm raises concerns that Fortress Biotech stands to benefit disproportionately from the agreement while ordinary shareholders may not receive a fair value for their shares. Adding a layer of complexity, Fortress Biotech is also set to receive royalty payments linked to the future sales of cosibelimab, indicating that the company may reap extensive rewards from the drug's success.
Additionally, if cosibelimab gains approval within the European Union, shareholders may see an extra benefit of up to $0.70 per share through a 'contingent value right', or CVR. This provision ties the potential additional earnings to the drug's acceptance abroad, making the timeline crucial for many investors monitoring the stock.
Julie & Holleman points out that their track record in assisting shareholders to recover hundreds of millions in damages underlines their understanding of the stakes involved. They are encouraging affected shareholders who are interested in exploring legal options or seeking additional information to reach out for a free consultation. The firm aims to ensure that shareholders' rights are represented and that any adverse impacts arising from potential conflicts of interest in this merger are thoroughly scrutinized.
As the merger progresses, the implications for ordinary investors remain a point of contention. As Checkpoint and Fortress Biotech proceed through the discussions, shareholder activism is likely to increase as investors attempt to safeguard their interests. Given the competitive pharmaceuticals landscape and the lucrative nature of the oncology market, all eyes will be on cosibelimab and the outcome of this transaction.
The current valuation of the U.S. market for cosibelimab is projected to exceed $1 billion annually, with global figures anticipated to be several times higher. Therefore, how the merger unfolds will not only affect Checkpoint’s standing but could potentially set a precedent in the industry for how similar acquisitions are handled in terms of shareholder rights.
For inquiries or further assistance, stakeholders are encouraged to contact partner W. Scott Holleman, Esq. at Julie & Holleman LLP, thereby ensuring they stay informed and relevant within this developing narrative.
Checkpoint Therapeutics, a firm dedicated to creating innovative therapies for solid tumor cancers, is under the control of Fortress Biotech, Inc. (Nasdaq: FBIO), which may be advantageous in this deal. However, stakeholders are voicing apprehensions about conflicts of interest surrounding Fortress Biotech’s role in the transaction. Julie & Holleman LLP, a law firm specializing in shareholder advocacy, has stepped in to investigate the legality and fairness of the proposed acquisition.
The law firm raises concerns that Fortress Biotech stands to benefit disproportionately from the agreement while ordinary shareholders may not receive a fair value for their shares. Adding a layer of complexity, Fortress Biotech is also set to receive royalty payments linked to the future sales of cosibelimab, indicating that the company may reap extensive rewards from the drug's success.
Additionally, if cosibelimab gains approval within the European Union, shareholders may see an extra benefit of up to $0.70 per share through a 'contingent value right', or CVR. This provision ties the potential additional earnings to the drug's acceptance abroad, making the timeline crucial for many investors monitoring the stock.
Julie & Holleman points out that their track record in assisting shareholders to recover hundreds of millions in damages underlines their understanding of the stakes involved. They are encouraging affected shareholders who are interested in exploring legal options or seeking additional information to reach out for a free consultation. The firm aims to ensure that shareholders' rights are represented and that any adverse impacts arising from potential conflicts of interest in this merger are thoroughly scrutinized.
As the merger progresses, the implications for ordinary investors remain a point of contention. As Checkpoint and Fortress Biotech proceed through the discussions, shareholder activism is likely to increase as investors attempt to safeguard their interests. Given the competitive pharmaceuticals landscape and the lucrative nature of the oncology market, all eyes will be on cosibelimab and the outcome of this transaction.
The current valuation of the U.S. market for cosibelimab is projected to exceed $1 billion annually, with global figures anticipated to be several times higher. Therefore, how the merger unfolds will not only affect Checkpoint’s standing but could potentially set a precedent in the industry for how similar acquisitions are handled in terms of shareholder rights.
For inquiries or further assistance, stakeholders are encouraged to contact partner W. Scott Holleman, Esq. at Julie & Holleman LLP, thereby ensuring they stay informed and relevant within this developing narrative.
Topics Financial Services & Investing）
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