Astrazeneca completes $2.4bn acquisition of Fusion

Biopharmaceutical company AstraZeneca has finalised its acquisition of Canadian cancer specialist Fusion Pharmaceuticals Inc for a total of $2.4bn (£1.88bn).

Fusion Pharmaceuticals is a clinical-stage biopharmaceutical company focused on next-generation radioconjugates (RCs) for cancer treatment. Its pipeline, particularly FPI-2265, a potential new treatment for patients with metastatic castration-resistant prostate cancer, enhances AstraZeneca’s oncology portfolio. Additionally, the acquisition brings expertise in actinium-based RCs and strengthens AstraZeneca’s presence in Canada.

Under the terms of the deal, first announced in March, AstraZeneca paid Fusion shareholders $21.00 per share in cash at closing plus a contingent value right of $3.00 per share which is payable upon the achievement of a specified regulatory milestone before 31 August 2029.

It also acquired the cash, cash equivalents and short-term investments on Fusion’s balance sheet, which totalled $211m (£165m) as of 31 March 2024.

The addition of Fusion will help AstraZeneca deliver on its ambition to transform cancer treatment and outcomes for patients by replacing traditional regimens like chemotherapy and radiotherapy with more targeted treatments, the company said.

Fusion’s shares will be delisted from the Nasdaq Stock Market and deregistered under the US Securities Exchange Act of 1934, and Fusion has applied to cease to be a reporting issuer under Canadian securities laws.