AstraZeneca Completes Acquisition of Fusion Pharma for $2.4 Bn

This acquisition complements AstraZeneca’s leading oncology portfolio with the addition of the Fusion pipeline of RCs, including their most advanced programme, FPI-2265.

British pharmaceutical giant AstraZeneca has successfully completed the acquisition of Fusion Pharmaceuticals, a Canadian clinical-stage biopharmaceutical company developing next-generation radioconjugates (RCs) for $2.4 Bn.

The strategic acquisition aligns with AstraZeneca’s aim to transform cancer treatment and outcomes for patients by replacing traditional regimens such as chemotherapy and radiotherapy with more targeted treatments.

Fusion Pharmaceuticals is renowned for its pioneering work in developing next-generation radioconjugates, offering enhanced alternatives to traditional chemotherapy and radiotherapy.

These treatments deliver a radioactive isotope directly to cancer cells, minimizing damage to healthy tissues and enabling precise targeting of tumors.

The use of molecules such as antibodies, peptides, or small molecules facilitates this precise targeting, thereby promising to revolutionize cancer treatment approaches.

The Financial Terms

This acquisition complements AstraZeneca’s leading oncology portfolio with the addition of the Fusion pipeline of RCs, including their most advanced programme, FPI-2265.

This also includes a potential new treatment for patients with metastatic castration-resistant prostate cancer (mCRPC).

Further, Fusion is expected to bring new expertise and pioneer R&D, manufacturing and supply chain capabilities in actinium-based RCs to AstraZeneca.

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

Per the agreement, AstraZeneca, through a subsidiary, acquired all of Fusion’s outstanding shares pursuant to a plan of arrangement for a price of $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 prior to 31st August, 2029.

AstraZeneca's Recent Developments

Last month, pharmaceutical giant AstraZeneca revealed its plan to invest $388 million in its Dunkirk site. These investments were unveiled just before the annual 'Choose France' business summit, showcasing a positive outlook towards France's business environment.

Sharing insights, a Pfizer spokesperson said, "We are pleased to announce our substantial investment in France, reaffirming our dedication to promoting innovation and propelling healthcare progress. This investment will enhance our research and development capabilities in the country, supporting the creation of transformative therapies."

Days back, the pharmaceutical player also planned to build a $1.5 billion manufacturing facility in Singapore.

The newly launched facility will produce a notable category of cancer-killing drugs called antibody-drug conjugates (ADCs), the Anglo-Swedish drugmaker informed.

This marks the company's first end-to-end ADC production site, supported by the Singapore Economic Development Board, though details on potential financial incentives were not disclosed.

Construction of the facility is set to begin by the end of 2024, with operations expected to commence in 2029. The company also committed to achieving zero carbon emissions from the facility's first day of operations.