Eli Lilly Extends Deadline For Point Biopharma Share Sale Amid Participation Concerns

According to the reports in the media, in a move to address low participation, Eli Lilly has announced an extension of the deadline for Point Biopharma Global shareholders to sell their stock. The new deadline is set for December 1, giving shareholders an additional two weeks, the media report informed.

Reportedly, the extension comes after Lilly's October agreement to acquire Point Biopharma in an all-cash deal valued at USD 1.4 billion, aimed at gaining access to the innovative therapies developed by Point Biopharma for precise cancer targeting.

Despite Lilly's offer to purchase Point Biopharma shares at USD12.50 each and obtaining all necessary regulatory approvals for the acquisition, the company stated that the price would remain unchanged during the extended period. Interestingly, Point Biopharma's shares closed at USD 13.33 on Thursday, indicating a market value higher than Lilly's offer.

As of 1700 ET on Thursday, only 26.45 per cent of the issued and outstanding shares of Point Biopharma, totalling about 28.2 million shares, had been tendered for sale. This falls short of the minimum tender condition required for the deal. The extension of the tender offer is intended to provide ample time for both companies to satisfy this condition, the media report suggested.

The company aims to diversify and drive growth through potential blockbuster drugs like Mounjaro and the recently approved obesity drug, Zepbound, the media report stated.