AstraZeneca to buy Canadian cancer treatment developer Fusion Pharmaceuticals

HAMILTON — Canadian cancer treatment developer Fusion Pharmaceuticals Inc. has signed a deal to be bought by AstraZeneca in an agreement valued at up to US$2.4 billion.

Fusion, based in Hamilton, is focused on developing radioconjugates which are used to deliver radiation directly to cancer cells.

The treatment has the potential to minimize damage to healthy cells and enable access to tumours not reachable through external beam radiation.

“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,” Fusion chief executive John Valliant said in a statement.

The company’s most advanced program is a potential new treatment for patients with metastatic castration-resistant prostate cancer. It is in a Phase 2 trial.

“Between 30 and 50 per cent of patients with cancer today receive radiotherapy at some point during treatment, and the acquisition of Fusion furthers our ambition to transform this aspect of care,” said Susan Galbraith, AstraZeneca’s executive vice-president, oncology R&D.

Under the terms of the deal, Fusion shareholders will receive US$21 per share in cash plus an additional non-transferable contingent value right worth $3 per share in cash that is payable upon the achievement of a specified regulatory milestone.

Fusion shares closed at US$10.64 on the Nasdaq market on Monday.

The acquisition is subject to customary closing conditions, including shareholder approval.

The deal is expected to close in the second quarter of 2024.

This report by The Canadian Press was first published March 19, 2024.

The Canadian Press