The goal of this strategic acquisition by Eli Lilly is to gain access to radiation therapies currently being developed for the treatment of diseases such as prostate cancer. The transaction will be completed at a price of $12.50 per share in cash, representing a significant 87% premium to Point's closing share price on Monday.

While Eli Lilly's market value is growing thanks to the sales potential of its weight loss and Alzheimer's drugs, the company is actively working to expand its presence in cancer treatment. These efforts began with the acquisition of biopharmaceutical company Loxo Oncology in 2019 for approximately $7 billion, which focuses on developing drugs for patients with genomically defined cancers. Cancer remains one of the most lucrative and enduring areas of opportunity for large pharmaceutical companies, with global revenues from cancer treatments reaching nearly $200 billion in 2022.

Point Biopharma specializes in radiopharmaceuticals and boasts a number of radioligand therapies in clinical and preclinical phases for the treatment of cancer. Radioligand therapy enables precise targeting of cancer cells by combining a radioisotope with a target molecule, delivering radiation directly to cancer cells while minimizing damage to healthy tissue. Point Biopharma is currently conducting studies of PNT2002 in patients with advanced prostate cancer that has worsened after hormone therapy and also has its own manufacturing capabilities, including a 180,000 square foot radiopharmaceutical manufacturing facility in Indiana and a research and development center in Canada.

Founded in 1876, Eli Lilly is a renowned multinational pharmaceutical corporation headquartered in Indianapolis, Indiana. In 2022, Eli Lilly employed 39,000 people worldwide and had annual sales of $28.5 billion. The company supplies medicines to 110 countries, cementing its position as one of the largest pharmaceutical companies in the world. Eli Lilly operates its primary research and development facilities in 7 countries and conducts clinical trials in more than 50 countries. One of the company's greatest achievements is the development of the highly acclaimed antidepressant Prozac.

Eli Lilly's other acquisitions this year include the $2.4 billion purchase of Dice Therapeutics and the $1.9 billion acquisition of biopharmaceutical company Versanis.