Eli Lilly acquires Point Biopharma for $1.4B: Employee rights

Eli Lilly and Co. is purchasing Point Biopharma Global for $1.4 billion, aiming to expand its cancer therapy offerings.

Here are some key points about the acquisition:

• Acquisition Overview: Lilly will acquire Point Biopharma, marking its continued strategy to bolster its pipeline. This follows previous acquisitions including Dice Therapeutics for $2.4 billion and privately-held Versanis for $1.93 billion.
• Point Biopharma’s Offerings: Point Biopharma is currently conducting late-stage studies of radioligand therapies, PNT2002 and PNT2003. These therapies utilize radioactive particles to destroy cells, combined with molecules targeting tumours.
• Stock Details: Lilly proposes $12.50 per Point Biopharma share, an 87% premium on the stock’s last closing price. Consequently, Point Biopharma shares surged 85% in premarket trading.
• Therapeutic Potential: Point Biopharma’s PNT2002 is being tested for advanced prostate cancer treatment, especially in cases resistant to hormone therapy. PNT2002, developed in collaboration with Lantheus Holdings, is anticipated to compete with Novartis’ Pluvicto, launched in the U.S. in 2022.
• Portfolio Expansion: The acquisition will add PNT2003, aimed at a rare type of digestive tract cancer, to Lilly’s existing product lineup, which includes drugs like Verzenio and Jaypirca.
• Additional Assets: Lilly will also benefit from Point Biopharma’s manufacturing facility in Indianapolis for radiopharmaceuticals and a research centre in Toronto.

Expected to close by the end of 2023, this acquisition aligns with Lilly’s strategy to enhance its cancer therapy segment.

Who pays severance if Lilly doesn’t want to keep certain Point Biopharma staff?

If Canadian Point Biopharma employees lose their job due to Lilly’s purchase of the company, Point Biopharma is responsible for paying their full severance.

In Canada, the seller of the business – in this case, Point Biopharma – is responsible for providing proper compensation to staff who lose their job.

WATCH: Employment lawyer Lior Samfiru explains the rights workers have when their employer sells the business on an episode of the Employment Law Show.

If Lilly provides you with an employment offer, and you have a good reason for why you don’t want to accept it (i.e. different hours or pay), you might be able to get full severance pay from Point Biopharma.

Even without a good reason you can still get severance, but it’s very likely that you will only receive your minimum entitlements.

LEARN MORE
• Rights to severance in Alberta when your employer sells the business
• Employer sold the business in B.C.? Know your rights to severance
• Sale of business in Ontario: Rights to severance

How is severance pay calculated?

Severance for non-unionized employees in Canada can be as much as 24 months’ pay.

This includes individuals working full-time, part-time, or hourly in Ontario, Alberta, and B.C.

The amount of compensation you are entitled to is calculated using several factors, including:

• Age
• Length of service
• Position at the company
• Ability to find new work

To figure out how much you could be owed, use our firm’s free Severance Pay Calculator. It has helped millions of Canadians determine their severance entitlements.

If your company doesn’t provide you with the correct amount, you have been wrongfully dismissed and should contact an experienced employment lawyer at Samfiru Tumarkin LLP immediately.

We have resolved tens of thousands of wrongful dismissal claims, and can help you secure proper severance.

LEARN MORE
• Rights to severance for provincially regulated employees
• Severance packages in mass layoffs
• Severance pay in a recession

Can Lilly make major changes to the jobs of staff at Point Biopharma?

Non-unionized employees at Point Biopharma don’t have to accept substantial changes to their job that Lilly might try to enforce.

Major modifications, such as a demotion, longer shifts, or reduced pay, are illegal in Canada.

When significant adjustments are made to the terms of your employment without your consent, there is a very good chance that you can treat it as a constructive dismissal.

In this situation, the law allows you to quit your job and pursue full severance pay.

If you believe that you have been constructively dismissed, don’t resign before contacting our firm.

ADDITIONAL RESOURCES
• Job changes in Alberta: What employees need to know
• Changes to your employment in B.C.: Your rights
• Can my employer make changes to my job in Ontario?

New employment contracts for Point Biopharma staff

If you are a non-unionized employee at Point Biopharma, and you receive a new employment contract from Lilly, take the time to carefully review it before signing it.

In many cases, these agreements take away key protections that would otherwise be available to you, including:

• Eliminating past service: The new owner might attempt to reduce or eliminate your years of service with your previous employer. Don’t sacrifice your seniority. Length of service is a key factor when determining how much severance pay you are entitled to.
• Reducing severance pay: Some employers try to use a termination clause to reduce your severance entitlements to the bare minimum. Instead of months of pay, you might only receive a few weeks’ pay if you are fired without cause or let go.
• Ability to make changes: The new owner might attempt to add a clause that gives them the right to change aspects of your job (i.e. hours or pay) without your permission or lay you off without penalty.

Employers in Canada can’t legally force non-unionized workers to sign a new employment contract immediately or a few days after receiving it.

SEE ALSO
• Starting a new job? Here’s how an employment contract could limit your rights
• Employment Law Show: 5 things to know about employment contracts
• Employment Law Show: Things to never do before seeking legal counsel

Received a job offer? Speak with an employment lawyer

Before accepting a new employment contract, have the experienced employment law team at Samfiru Tumarkin LLP review the agreement to make sure your workplace rights are protected.

Our lawyers in Ontario, Alberta, and B.C. have successfully represented tens of thousands of non-unionized individuals.

We can help you better understand the terms of the contract and advise you on how best to navigate the situation.