Astrazeneca swallows up Canada-based Fusion Pharmaceuticals in £1.5bn move

Astrazeneca has completed its $2bn (£1.5bn) acquisition of Canada-based Fusion Pharmaceuticals.

The deal was first announced in March for the business which develops so-called next-generation radioconjugates (RCs) – complex drugs which, when fully developed, can destroy existing cancer cells and target potential future ones.

Astrazeneca has acquired all of Fusion’s outstanding shares for a price of $21 (£16.53) per share in cash at closing plus a non-transferable contingent value right of $3 (£2.30) per share in cash payable upon the achievement of an unspecified regulatory milestone.

It has also acquired the cash, cash equivalents, and short-term investments on Fusion’s balance sheet, which totalled $234m (£184.2m) as of 31 December 2023.

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

In March, Susan Galbraith, executive vice president of Oncology R&D at Astrazeneca, said: “Between 30 and 50 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. 

“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.”