AstraZeneca has entered into a definitive agreement to acquire Canadian Fusion Pharmaceuticals, a clinical-stage biopharmaceutical company developing next-generation radioconjugates (RCs).
Under the terms of the definitive agreement, AstraZeneca, through a subsidiary, will acquire all of Fusion’s outstanding shares pursuant to a plan of arrangement for a price of USD 21.00 per share in cash at closing plus a non-transferable contingent value right of USD 3.00 per share in cash payable upon the achievement of a specified regulatory milestone.
Combined, the upfront and maximum potential contingent value payments represent, if achieved, a transaction value of approximately USD 2.4 billion.”
Combined, the upfront and maximum potential contingent value payments represent, if achieved, a transaction value of approximately USD 2.4 billion, a 126% premium to Fusion’s closing market price on 18th March 2024 and a 111% premium to the 30-day VWAP. The transaction is expected to close in the second quarter of 2024.
Fusion will become a wholly owned subsidiary
The acquisition complements AstraZeneca’s oncology portfolio with the addition of the Fusion pipeline of RCs, including their most advanced programme, FPI-2265, a potential new treatment for patients with metastatic castration-resistant prostate cancer (mCRPC). FPI-2265 targets prostate-specific membrane antigen (PSMA), a protein that is highly expressed in mCRPC, and is currently in a Phase II trial. The acquisition also brings new expertise and pioneering R&D, manufacturing and supply chain capabilities in actinium-based RCs to AstraZeneca. It also strengthens the company’s presence in and commitment to Canada, it states.
“Between thirty and fifty 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 with next-generation radioconjugates. 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,” says Susan Galbraith, Executive Vice President, Oncology R&D, AstraZeneca.
Fusion will become a wholly owned subsidiary of AstraZeneca, with operations continuing in Canada and the US.
Co-founded by HealthCap
Venture capital firm HealthCap co-founded Fusion in 2017 via a spin-out from the Canadian Center for Probe Development and Commercialization (CPDC). The investment was made via HealthCap’s fund VII, which acted as co-lead together with Johnson & Johnson Innovation (JJDC). Fusion was created to promote innovation in radiotherapy. HealthCap has been instrumental in the company’s journey, providing not only capital, but strategic guidance and access to its broad network, it states.
The acquisition not only validates the groundbreaking work done by Fusion, but also reflects the strength of HealthCap’s investment strategy and role in building international biotech companies.”
“Fusion’s impressive journey underlines the enormous potential of investing in innovative biotechnology that can really make a difference,” says Johan Christenson, partner at HealthCap VII Advisor AB. “The acquisition not only validates the groundbreaking work done by Fusion, but also reflects the strength of HealthCap’s investment strategy and role in building international biotech companies.”
Featured photo of Susan Galbraith, EVP Oncology R&D, AstraZeneca, and Johan Christenson, Partner, HealthCap VII Advisor AB (Photo: Dan Coleman/HealthCap)
