HQ Team
March 20, 2024: Anglo-Swedish drugmaker, AstraZeneca will acquire clinical-stage Fusion Pharmaceuticals for $2 billion in cash to get access to the latter’s radioconjugates to treat cancer.
AstraZeneca will pay $21.00 for a Fusion share in cash “plus a non-transferable contingent value right of $3.00 per share in cash payable upon the achievement of a specified regulatory milestone,” according to a statement.
This acquisition complemented AstraZeneca’s oncology portfolio with the addition of the Fusion pipeline of radioconjugates, including FPI-2265, a potential new treatment for patients with metastatic castration-resistant prostate cancer.
Radioconjugates have emerged as a promising modality in cancer treatment over recent years.
Minimise damage to healthy cells
These medicines deliver a radioactive isotope directly to cancer cells through precise targeting using molecules such as antibodies, peptides or small molecules.
This approach has many potential advantages compared to traditional radiotherapy including minimising damage to healthy cells and enabling access to tumours not reachable through external beam radiation.
“Between thirty and fifty per cent 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,” said Susan Galbraith, Executive Vice President, of Oncology R&D, AstraZeneca.
“Together with Fusion, we have an opportunity to accelerate the development of FPI-2265 as a potential new treatment for prostate cancer, and to harness their innovative actinium-based platform to develop radioconjugates as foundational regimens.”
The investigational FPI-2265 currently is in its mid-trial stage. Last week AstraZeneca agreed to buy Amolyt Pharma for $1.05 billion to shore up its rare disease portfolio.
Wholly-owned subsidiary
Fusion will become a wholly-owned subsidiary of AstraZeneca, with operations set to continue in Canada and the US.
The value of $2 billion is a 97% premium to Fusion’s closing market price of $10.64 on 18th March 2024 and an 85% premium to the 30-day volume-weighted average price of $11.37, according to AstraZeneca.
AstraZeneca will acquire the cash, cash equivalents and short-term investments on Fusion’s balance sheet, which totalled $234m as of 31st December 2023.
