AstraZeneca has announced its definitive agreement to acquire Fusion Pharmaceuticals Inc., a trailblazing clinical-stage biopharmaceutical company specializing in next-generation radioconjugates (RCs). The acquisition underscores AstraZeneca's commitment to advancing oncological care by replacing conventional therapies like chemotherapy and radiotherapy with more precise and effective treatments.

Radioconjugates (RCs) have emerged as a promising avenue in cancer therapy, delivering radioactive isotopes directly to cancer cells through targeted molecules such as antibodies, peptides, or small molecules. This approach offers numerous advantages over traditional radiotherapy, including reduced damage to healthy tissues and enhanced accessibility to tumors previously unreachable by external beam radiation.

The acquisition will bolster AstraZeneca's renowned oncology portfolio with Fusion's pipeline of RCs, notably featuring their lead candidate, FPI-2265. FPI-2265 holds immense promise as a potential breakthrough treatment for patients with metastatic castration-resistant prostate cancer (mCRPC), targeting the prostate-specific membrane antigen (PSMA). Currently in Phase II trials, FPI-2265 represents a beacon of hope for individuals battling this aggressive form of cancer.

Moreover, the acquisition brings invaluable expertise and cutting-edge research capabilities in actinium-based RCs to AstraZeneca, reinforcing the company's dedication to advancing cancer care. It also underscores AstraZeneca's commitment to Canada, enhancing its presence and commitment to fostering innovation in the region.

Susan Galbraith, Executive Vice President of Oncology R&D at AstraZeneca, expressed enthusiasm about the acquisition, emphasizing its potential to accelerate the development of FPI-2265 and other groundbreaking treatments. Galbraith highlighted the opportunity to leverage Fusion's innovative platform to develop foundational regimens that could transform patient outcomes.

John Valliant, CEO of Fusion Pharmaceuticals, echoed Galbraith's sentiments, emphasizing the synergies between Fusion's expertise in radioconjugates and AstraZeneca's leadership in small molecules and biologics engineering. Valliant underscored the unique opportunity presented by the acquisition to expedite the development of next-generation radioconjugates, aiming to revolutionize cancer treatment and improve patient outcomes.

As part of the acquisition, Fusion will operate as a wholly owned subsidiary of AstraZeneca, maintaining its operations in Canada and the US.

Financial Details

Under the terms of the agreement, AstraZeneca will acquire all outstanding shares of Fusion for $21.00 per share in cash at closing, with an additional non-transferable contingent value right of $3.00 per share payable upon the achievement of a specified regulatory milestone. The upfront cash portion of the consideration amounts to approximately $2 billion, representing a substantial premium to Fusion's recent market price. Including the contingent value payments, the total transaction value could reach approximately $2.4 billion.

The transaction is expected to close in the second quarter of 2024, subject to customary closing conditions and regulatory approvals.