AstraZeneca completes acquisition of Fusion Pharmaceuticals for US$2.4B

UK – AstraZeneca has completed its acquisition of Fusion Pharmaceuticals, a clinical-stage biopharmaceutical company specializing in developing next-generation radioconjugates (RCs) for cancer treatment. 

The US $2.4 billion deal marks a significant step forward in AstraZeneca’s ambition to transform cancer therapy by introducing more targeted treatments.

Under the terms of the definitive agreement, AstraZeneca acquired all outstanding shares of Fusion for US$21.00 per share in cash at closing, plus a non-transferable contingent value right of US$3.00 per share in cash payable upon the achievement of a specified regulatory milestone before August 31, 2029. 

The upfront payment and maximum potential contingent value payment represent a transaction value of approximately US$2.4 billion, a 97% premium to Fusion’s closing market price on March 18, 2024.

The acquisition enhances AstraZeneca’s oncology portfolio with Fusion’s pipeline of RCs, including its most advanced program, FPI-2265, a potential new treatment for patients with metastatic castration-resistant prostate cancer (mCRPC). 

FPI-2265 is currently in a Phase II trial and utilizes actinium-225, an alpha particle-emitting radioisotope that can deliver a higher radiation dose over a shorter distance. 

This can result in more effective cancer cell destruction while minimizing damage to surrounding healthy tissue.

Susan Galbraith, AstraZeneca’s executive vice president of oncology research and development, emphasized the significance of the acquisition, stating, “Between 30 and 50% of patients with cancer today receive radiotherapy at some point during treatment, and the acquisition of Fusion furthers our ambition to transform this aspect of care with next-generation radioconjugates”.

The deal also brings new expertise and capabilities in actinium-based RCs to AstraZeneca, including pioneering research and development, manufacturing, and supply chain operations.

 Fusion’s operations will continue in Canada and the US, and the company will operate as a wholly owned AstraZeneca subsidiary.

The acquisition aligns with AstraZeneca’s plan to enhance cancer treatment and patient outcomes by replacing traditional chemotherapy and radiotherapy with more precise treatment modalities.

 It reinforces the company’s presence in Canada and enriches its oncology portfolio, positioning it for future growth and innovation in the field of radiopharmaceuticals.

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