Astrazeneca completes $2bn Fusion Pharmaceuticals deal

AstraZeneca has finalized its $2 billion acquisition of Fusion Pharmaceuticals, a Canada-based company specializing in next-generation radioconjugates (RCs). These complex drugs, once fully developed, are designed to eliminate existing cancer cells and target potential future ones.

The acquisition, initially announced in March, involves AstraZeneca purchasing all outstanding shares of Fusion for $21 per share in cash at closing. Additionally, there is a non-transferable contingent value right of $3 per share in cash, which will be payable upon the achievement of a specific regulatory milestone. AstraZeneca also acquired Fusion's cash, cash equivalents, and short-term investments, which amounted to $234 million as of December 31, 2023. With this acquisition, Fusion Pharmaceuticals is now a wholly owned subsidiary of AstraZeneca, operating in both Canada and the US.

In related news, AstraZeneca announced last month its plan to invest £1.2 billion in constructing a manufacturing facility in Singapore dedicated to producing antibody drug conjugates (ADCs), a new generation of cancer treatments.