Sun Pharmaceutical Industries’ $355 million acquisition of Checkpoint Therapeutics is a bold move, but analysts warn that it may not be enough to secure a strong foothold in the competitive oncology market
The company’s newly acquired drug, UNLOXCYT (cosibelimab), faces stiff competition from Regeneron’s Libtayo, which already dominates the treatment space for advanced cutaneous squamous cell carcinoma (cSCC). To succeed, Sun Pharma must implement an aggressive pricing strategy and engage extensively with physicians to drive adoption.
Meanwhile, Sun Pharma’s stocks rose 2 per cent in the morning trade to Rs 1,643.20, but by mid-morning, it had settled at Rs 1,609.35. Pharma stocks were trading at Rs 20,372.7, down 5.6 per cent at the time of writing this report. Fear surrounding Trump’s tariff policies and the stretched valuation of certain stocks pulled down the pharma index.
Competitive Landscape
The oncology drug market is fiercely competitive, with pharmaceutical giants like Merck, Roche, and Bristol Myers Squibb holding significant market shares. Unlike these companies, which have extensive resources for marketing and clinical trials, Sun Pharma is still a new player in the US oncology space. While UNLOXCYT’s differentiation as a PD-L1 inhibitor instead of a PD-1 inhibitor gives it a unique positioning, that alone may not be enough to guarantee commercial success.
Sun Pharma will need to take additional strategic steps, including combination therapy trials to improve UNLOXCYT’s effectiveness and expand its potential applications. Partnerships with biotech firms to accelerate drug development and commercialisation.
Further acquisitions to strengthen its position in speciality oncology, building on its previous purchases of Odomzo (a skin cancer treatment) and Ilumya (a dermatology biologic).
Despite these challenges, Sun Pharma remains optimistic. The US market for advanced cSCC is valued at over $1 billion annually, and if the company can successfully position UNLOXCYT, it stands to gain significant revenues. However, execution will be critical—missteps in pricing, regulatory compliance, or market positioning could turn this investment into an expensive mistake rather than a transformative expansion.
Speciality pharma
With oncology drug spending projected to reach $409 billion by 2028, Sun Pharma’s entry into the sector signals its ambition to become a key player in speciality pharmaceuticals. However, the company must prove that it can compete with industry heavyweights and effectively commercialise its products. The pharmaceutical industry will be watching closely to see if Sun Pharma’s gamble pays off—or if it serves as a reminder of how difficult it is to break into the oncology market.
