Eli Lilly and Company LLY shares are trading lower Tuesday after the company announced the acquisition of POINT Biopharma for an aggregate purchase price of approximately $1.4 billion.
What To Know: Shares of Eli Lilly fell following the announcement of a definitive agreement for the company to acquire POINT, a radiopharmaceutical company.
Eli Lilly will commence a tender offer to acquire all outstanding shares of POINT for a purchase price of $12.50 per share in cash, after which the company will acquire any shares of POINT that are not tendered in the tender offer through a second-step merger at the same consideration as paid in the tender offer.
The transaction is expected to close near the end of 2023.
"Over the past few years, we have seen how well-designed radiopharmaceuticals can demonstrate meaningful results for patients with cancer and rapidly integrate into standards of care, yet the field remains in the early days of the impact it may ultimately deliver," said Jacob Van Naarden, President of Loxo@Lilly, the oncology unit of Eli Lilly and Company.
"We look forward to welcoming POINT colleagues to Lilly and working together to build upon their achievements as we develop a pipeline of meaningful new radioligand treatments for patients."
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LLY Price Action: Shares of LLY were down 3.32% at $520.40 at the time of publication, according to Benzinga Pro.
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