AstraZeneca has completed its acquisition of Fusion Pharmaceuticals, a Hamilton, Ontario, Canada-based clinical-stage bio/pharmaceutical company, in a $2.4-billion deal (includes $2 billion upfront). The acquisition was announced in March 2024 

Fusion Pharmaceuticals specializes in developing radioconjugates to treat cancer to deliver a radioactive isotope directly to cancer cells through precise targeting using molecules such as antibodies, peptides, or small molecules. This approach has potential advantages compared to traditional radiotherapy, including minimizing damage to healthy cells and enabling access to tumors not reachable through external beam radiation, according to information from AstraZeneca.   

Fusion’s lead candidate is FPI-2265, an actinium-based radioconjugate as a potential new treatment for patients with metastatic castration-resistant prostate cancer (mCRPC), currently in a Phase II trial. FPI-2265 targets prostate-specific membrane antigen (PSMA), a protein that is highly expressed in mCRPC, according to information from AstraZeneca. The acquisition also includes R&D and manufacturing facilities.   

Under the agreement, AstraZeneca, through a subsidiary, acquired all of Fusion’s outstanding shares pursuant to a plan of arrangement for a price of $21.00 per share in cash at closing plus a non-transferable contingent value right of $3.00 per share payable upon the achievement of a specified regulatory milestone prior to August 31, 2029. Combined, the upfront payment and maximum potential contingent value payment, if achieved, represent a transaction value of approximately $2.4 billion. In addition, as part of the transaction, AstraZeneca acquired the cash, cash equivalents and short-term investments on Fusion’s balance sheet, which totaled $211 million as of March 31, 2024.  

As a result of the acquisition, Fusion has become a wholly owned subsidiary of AstraZeneca, with operations in Canada and the US. 

Source: AstraZeneca