AstraZeneca acquires rival radiotherapy biotech for US$2.4b
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The news: Pharmaceutical giant AstraZeneca has struck a deal to purchase Canadian rival, Fusion Pharmaceuticals, to build out its next-generation radiotherapy offering.
The numbers: AstraZeneca will pay USD2 billion ($3.06 billion) upfront in a cash transaction for Fusion, with a total transaction value of USD2.4 billion based on contingent, further payments. Combined, the total payments represent a 126% premium to Fusion’s closing market price on Monday this week.
The context: Fusion is developing treatments that allow radioactive isotopes to target cancer cells more efficiently and with less damage to healthy cells. The UK-based drugmaker believes these radioconjugates will become pivotal to cancer treatment in the future.
Fusion currently has a drug in mid-stage phase 2 clinical trials which could treat advanced prostate cancer, a similar treatment to that being pursued by AstraZeneca rival, Novartis.
What they said: Susan Galbraith, executive vice president, Oncology R&D, AstraZeneca, said: “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 source: AstraZeneca press release
