AstraZeneca Bets on New Cancer Treatments By Acquiring Fusion Pharmaceuticals for $2 Billion

AstraZeneca is set to undertake Fusion Pharmaceuticals, a clinical-stage biopharmaceutical company.

On the 18th (local time), AstraZeneca announced that it will acquire Fusion Pharmaceuticals for approximately $2 billion in cash, betting on its next-generation cancer treatments.

This deal marks AstraZeneca’s second takeover this month, following last week’s agreement to undertake Amolyt Pharma for $1.5 billion, strengthening its rare disease portfolio.

AstraZeneca plans to pay $21 per share, a premium of over 97% of Fusion Pharma’s stock.

Additionally, AstraZeneca will pay a non-transferable contingent value right of $3 per share, bringing the total transaction value to approximately $2.4 billion.

Susan Galbraith, Vice President of Research and Development at AstraZeneca, said, “Today, 30-50% of cancer patients are receiving radiation therapy, and our acquisition of Fusion Pharma solidifies our ambition to innovate this treatment with next-generation radiopharmaceutical conjugate.”

Fusion Pharma is developing the next-generation radiopharmaceutical conjugate (RC) for cancer treatment.

AstraZeneca stated that RC, which delivers radioactive isotopes directly to cancer cells through precise targeting, has emerged as a promising cancer treatment in recent years.

Fusion Pharma’s most advanced program is FPI-2265, currently undergoing mid-stage clinical trials to treat patients with metastatic castration-resistant prostate cancer.

Fusion Pharma announced in January that it had collaborated with the FDA on the submitted 2/3 phase protocol for FPI-2265 and anticipates beginning phase 3 or late-stage registration trials in 2025.

On the other hand, AstraZeneca has been researching other methods to develop unique cancer treatments that involve Antibody-Drug Conjugates (ADCs) and RC.

The U.S. Food and Drug Administration (FDA) approved ADC in 2000 and radioactive conjugates in 2018.