AstraZeneca has agreed to acquire two companies in two separate deals: Fusion Pharmaceuticals, a Hamilton, Ontario, Canada-based clinical-stage bio/pharmaceutical company, in a $2.4-deal billion (includes $2 billion upfront), and Amolyt Pharma, a clinical-stage bio/pharmaceutical company, in an $1-deal billion (includes $800 million upfront).  

Acquisition of Fusion Pharmaceuticals
Fusion specializes in developing radioconjugates to treat cancer, which 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, will acquire all of Fusion’s outstanding shares for $21.00 per share in cash at closing plus a non-transferable contingent value right of $3.00 per share in cash payable upon the achievement of a specified regulatory milestone. The upfront cash portion of the consideration represents a transaction value of approximately $2 billion. Combined, the upfront and maximum potential contingent value payments represent, if achieved, a transaction value of approximately $2.4 billion.  As part of the transaction, AstraZeneca will acquire the cash, cash equivalents, and short-term investments on Fusion’s balance sheet, which totaled $234 million as of December 31, 2023. 

The transaction is expected to close in the second quarter of 2024, subject to customary closing conditions, including the approval by Fusion shareholders and regulatory clearances. Upon closing, Fusion will become a wholly owned subsidiary of AstraZeneca, with operations continuing in Canada and the US. 

Acquisition of Amolyt Pharma 
Amolyt’s lead candidate is eneboparatide (AZP-3601), a Phase III investigational therapeutic peptide for treating hypoparathyroidism, a rare disease in which the body produces abnormally low levels of the parathyroid hormone (PTH), which is key to regulating and maintaining a balance of calcium and phosphorus in the body.  

Under the  agreement, AstraZeneca will acquire all of Amolyt Pharma’s outstanding shares for a total consideration of up to $1.05 billion, on a cash and debt-free basis. This includes $800 million upfront at deal closing, plus the right for Amolyt Pharma’s shareholders to receive an additional contingent payment of $250 million payable upon achievement of a specified regulatory milestone. 

Subject to the satisfaction of customary closing conditions in the acquisition agreement, including regulatory clearances, the transaction is expected to close by the end of the third quarter of 2024. 

Source: AstraZeneca (Fusion) and AstraZeneca (Amolyt)