- Fusion Pharmaceuticals’ shares are up 97 percent following an announcement that it will be acquired by AstraZeneca for US$2.4 billion
- AstraZeneca will acquire through one of its subsidiaries all of Fusion’s outstanding shares for US$21 each in cash at closing
- Fusion is working on targeted cancer treatments using radioactive isotopes
- Shares of Fusion Pharmaceuticals are up 97.74 per cent to US$21.04 as of 12:49 pm ET
Fusion Pharmaceuticals (NDAQ:FUSN) is officially slated to be acquired by biopharmaceutical giant AstraZeneca (OTC:AZNCF) for a US$2.4 billion deal.
In a statement, it was revealed that the Hamilton, Ontario-based company will be acquired by AstraZeneca by acquiring all of Fusion’s outstanding shares for $21 each in cash at the time of closing.
Fusion Pharmaceuticals is working on targeted cancer treatments using radioactive isotopes that directly target cancer cells and limit damage to nearby healthy tissue. The company’s lead drug candidate has the potential to treat metastatic castration-resistant prostate cancer.
As such, the acquisition of Fusion Pharmaceuticals will bolster AstraZeneca’s position in transforming cancer treatment and outcomes for patients with more targeted treatments.
“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,” John Valliant, CEO of Fusion Pharmaceuticals, said in a statement. “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.”
As noted above, under the terms of the definitive agreement, AstraZeneca, through a subsidiary, will acquire all of Fusion’s outstanding shares under a plan of arrangement for $21 per share in cash at closing, plus a non-transferable contingent value right of $3 per share in cash payable upon the achievement of a specified regulatory milestone.
Once the acquisition is complete, Fusion will become a wholly owned subsidiary of AstraZeneca with operations in Canada and the United States.
Fusion Pharmaceuticals is a clinical-stage oncology company focused on developing radiopharmaceuticals as precision medicines.
Shares of Fusion Pharmaceuticals Inc. (NDAQ:FUSN) are up 97.74 per cent to $21.04 as of 12:49 pm ET.
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