(Reuters) - Eli Lilly (NYSE:LLY) on Monday again extended its deadline for Point Biopharma Global shareholders to sell their shares to the drugmaker, following low participation amid investor concerns that the offer price was low.
Lilly set Dec. 15 as the deadline in a third extension. The Indianapolis-based drugmaker maintained its offer price at $12.50 per share, which is over 10% lower than Point Biopharma's last closing price of $13.80.
Lilly had struck a $1.4 billion deal to buy Point Biopharma in October. Since then till Friday's close, shares of Point Biopharma have more than doubled.
Biotechnology Value Fund, a private investment firm which owns 16.4% of Point Biopharma, had said in a filing last month that closing the deal ahead of imminent results from a late-stage study of a key drug candidate was "not in the best interest" on the company's shareholders.
As of Friday 5 p.m. ET, about 26.4 million shares had been validly tendered, representing only 24.75% of the issued and outstanding shares of Point Biopharma, Lilly said on Monday. The participation was lower than the 26.45% as of Nov. 16.
Shares of Point Biopharma were down 0.1% at $13.76 in early trading, while Lilly also traded marginally lower.
Point Biopharma is a developer of radioligand therapy, a targeted cancer treatment which uses a combination of molecules that attach themselves to the tumors and radioactive particles that kill the specific cells.
The company expects results from its late-stage study of experimental therapy, PNT2002, to treat a type of advanced prostate cancer later this month.
TD Cowen analyst Boris Peaker estimated there is a 60% chance of positive results from the study, which is likely to lift the stock further.
Lilly will then need to raise its offer, with a second bidder also likely, Peaker said in a note last month.