AstraZeneca to acquire Fusion Pharmaceuticals to boost cancer radioconjugate development

In a strategic move to revolutionize cancer treatment, AstraZeneca has announced its definitive agreement to acquire Fusion Pharmaceuticals Inc., a pioneer in the development of next-generation radioconjugates (RCs) for cancer therapy. This acquisition is a pivotal step for AstraZeneca in fulfilling its vision to transform cancer care, aiming to substitute conventional treatments such as chemotherapy and radiotherapy with more precise, targeted modalities.

Radioconjugates have garnered attention as an innovative approach in oncology, delivering radioactive isotopes directly to cancer cells via specific targeting agents like antibodies, peptides, or small molecules. This method offers several advantages over traditional radiotherapy, notably minimizing damage to healthy cells and reaching tumors inaccessible by external radiation.

The integration of Fusion Pharmaceuticals into AstraZeneca’s oncology portfolio enriches it with a promising pipeline of RCs, including the leading program, FPI-2265, designed for patients with metastatic castration-resistant prostate cancer (mCRPC). FPI-2265, currently in Phase II trials, targets PSMA, a protein abundantly present in mCRPC, showcasing the potential for significant advancements in prostate cancer treatment.

Susan Galbraith, Executive Vice President of Oncology R&D at AstraZeneca, highlighted the acquisition’s intent to revolutionize radiotherapy for cancer patients, leveraging Fusion’s innovative actinium-based platform and AstraZeneca’s expertise to develop foundational RC regimens.

John Valliant, CEO of Fusion, emphasized the synergistic potential of combining Fusion’s radioconjugate expertise with AstraZeneca’s capabilities in small molecules and biologics engineering, aiming to accelerate the development of transformative RCs.

With the acquisition, Fusion will become a fully owned subsidiary of AstraZeneca, maintaining operations in Canada and the US.

Under the terms, AstraZeneca will acquire Fusion at $21.00 per share in cash at closing, plus a contingent value right of $3.00 per share upon achieving a specified regulatory milestone. This transaction values Fusion at approximately $2bn, representing a 97% premium over Fusion’s market price as of March 18, 2024. The total potential value, if contingent payments are made, could reach approximately $2.4bn. This agreement includes the acquisition of Fusion’s cash reserves, amounting to $234m as of December 31, 2023.

The deal is slated for completion in Q2 2024, pending Fusion shareholder approval and regulatory clearances, marking a significant milestone in AstraZeneca’s expansion and innovation in oncology.

AstraZeneca’s acquisition of Fusion Pharmaceuticals signifies a major advancement in cancer treatment, underscoring the shift towards targeted therapeutic approaches. By focusing on radioconjugates, AstraZeneca not only enhances its oncology portfolio but also sets a new standard in precision medicine. This move, pivotal in the context of global health innovation, is poised to offer new hope to cancer patients worldwide, particularly those with limited treatment options.