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AstraZeneca acquires Fusion Pharmaceuticals in $2 billion deal
The acquisition provides AstraZeneca with access to clinical-stage, next-generation radioconjugates for oncology.
On March 19, 2024, AstraZeneca entered into a definitive agreement to acquire Fusion Pharmaceuticals in a $2 billion deal. Through this deal, AstraZeneca will expand its portfolio and gain access to Fusion’s clinical-stage, next-generation radioconjugates and research that have been used in oncology treatments.
According to the American Chemical Society (ACS), radioconjugates have emerged as a critical tool in oncology. They combine a targeting agent to identify cancer cells with cancer-killing radioactive isotopes.
By acquiring Fusion Pharmaceuticals, AstraZeneca will add multiple radioconjugates to its portfolio, including Fusion’s most advanced radioconjugate, FPI-2265.
“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. 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,” said Susan Galbraith, Executive Vice President of Oncology Research and Development at AstraZeneca, in the press release.
FPI-2265 is a phase 2 radioconjugate for patients with metastatic castration-resistant prostate cancer (mCRPC). It targets prostate-specific membrane antigens that are highly expressed in mCRPC.
“This acquisition combines Fusion’s expertise and capabilities in radioconjugates, including our industry-leading radiopharmaceutical R&D, pipeline, manufacturing, and actinium-225 supply chain, with AstraZeneca’s leadership in small molecules and biologics engineering to develop novel radioconjugates. Expanding on our existing collaboration with AstraZeneca, where we have advanced FPI-2068, an EGFR-cMET targeted radioconjugate into Phase I clinical trials, gives us a unique opportunity to accelerate the development of next-generation radioconjugates with the aim of transforming patient outcomes,” added John Valliant, Chief Executive Officer, Fusion,
AstraZeneca is spending $21.00 per share to acquire Fusion, which is roughly $2 billion in up-front costs. Additionally, the company’s agreement specifies a $3.00 per share non-transferable contingent value right if they reach a pre-specified regulatory milestone, which was not disclosed in the press release.
Despite the hefty cost of this acquisition, which is roughly 84% greater than its 30-day volume weight average price of $11.37 per share, AstraZeneca implies that the acquisition is a significant step forward for the company’s oncology portfolio.
