Checkpoint Therapeutics Reports $11.2 Million Net Loss and Prepares for Merger with Sun Pharmaceutical

Checkpoint Therapeutics, Inc. reported a net loss of $11.2 million for the first quarter of 2025, a slight increase from the $10.9 million loss recorded in the same period of the previous year. The company did not generate any revenue during this quarter, consistent with the prior year. Operating expenses totaled $11.1 million, which reflects a marginal increase from $10.9 million in the first quarter of 2024. The increase in expenses was primarily driven by a significant rise in general and administrative costs, which surged to $7.4 million from $2.5 million year-over-year, largely due to legal and advisory fees associated with the ongoing merger process.

In terms of financial position, Checkpoint Therapeutics reported cash and cash equivalents of $33.0 million as of March 31, 2025, a substantial increase from $6.6 million at the end of 2024. This increase was primarily attributed to the exercise of warrants, which generated approximately $38.1 million in cash during the quarter. The company’s total assets rose to $34.2 million, compared to $7.5 million at the end of the previous fiscal year, while total liabilities decreased slightly to $17.9 million from $20.1 million.

Strategically, Checkpoint is in the process of merging with Sun Pharmaceutical Industries, Inc., a move that was formalized through a merger agreement on March 9, 2025. The merger is expected to close in the second quarter of 2025, pending shareholder approval, which is scheduled for a special meeting on May 28, 2025. The merger agreement includes provisions for a cash payment of $4.10 per share and a contingent value right of up to $0.70 per share based on future milestones. This merger is seen as a critical step for Checkpoint to enhance its operational capabilities and market presence.

Operationally, Checkpoint has not yet commercialized any products, including its recently FDA-approved drug, UNLOXCYT, which is intended for the treatment of metastatic cutaneous squamous cell carcinoma. The company has faced challenges in establishing a commercial infrastructure and anticipates that it will continue to incur significant losses as it develops its product candidates. The company’s accumulated deficit reached $381.8 million as of March 31, 2025, raising concerns about its ability to sustain operations without additional funding.

Looking ahead, Checkpoint Therapeutics acknowledges the need for substantial additional funding to support its ongoing development and commercialization efforts. The company has indicated that its current cash reserves are only sufficient to fund operations into the first quarter of 2026, highlighting the urgency of securing further financing. The successful completion of the merger with Sun Pharma is expected to play a pivotal role in addressing these financial needs and facilitating the commercialization of UNLOXCYT and other product candidates.