By Colin Kellaher

Eli Lilly's planned $1.4 billion acquisition of Point Biopharma Global has hit a speed bump, as the radiopharmaceutical company's shareholders appear to not be going along with the tender offer.

Eli Lilly on Friday said it has extended its $12.50-a-share cash tender offer for Point until Dec. 1 to give the companies more time to meet the minimum tender condition.

Eli Lilly, which had already extended the tender offer to Thursday, said that less than 26.5% of Point shares had been tendered.

Several Point investors have filed suit over the deal, alleging the company omitted and/or misrepresented material information regarding the takeover.

In a filing earlier this month with the U.S. Securities and Exchange Commission, biotechnology investment firm BVF Partners disclosed a 16.5% stake in Point and said it wouldn't participate in the tender offer.

BVF said a takeover of Point by Eli Lilly before the release of results from a critical Phase 3 study of PNT2002 in metastatic castration resistant prostate cancer isn't in the best interest of Point's shareholders, adding that it sees the potential for significant upside for Point's shareholders to await the results of the study, expected by the end of the year.

Eli Lilly said it has received all regulatory approvals needed to complete the deal, which represented an 87% premium to Point's closing price of $6.68 before it was announced.

However, Point shares closed Thursday at $13.33, about 6.6% above the takeover price, indicating that investors are balking at the deal.

Write to Colin Kellaher at colin.kellaher@wsj.com

(END) Dow Jones Newswires

November 17, 2023 08:33 ET (13:33 GMT)

Copyright (c) 2023 Dow Jones & Company, Inc.
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