AstraZeneca (AZ) has announced that it will be acquiring Fusion Pharmaceuticals and its next-generation radioconjugates (RCs) for approximately $2.4bn.
RCs work by delivering a radioactive isotope directly to cancer cells through precise targeting using molecules.
The approach has potential advantages over traditional radiotherapy, including minimising damage to healthy cells and enabling access to tumours not reachable through external beam radiation.
The acquisition will give AZ access to Fusion’s pipeline of RCs, such as a potential treatment for patients with metastatic castration-resistant prostate cancer (mCRPC).
The mid-stage candidate, FPI-2265, targets prostate-specific membrane antigen, a protein that is highly expressed in mCRPC.
Under the terms of the agreement, which is expected to close in the second quarter of this year, AZ will acquire all of Fusion’s outstanding shares for $21 per share in cash.
AZ will also pay a non-transferable contingent value right of $3 per share payable upon the achievement of a specified regulatory milestone.
Susan Galbraith, executive vice president, oncology research and development (R&D) at AZ, said: “Between 30 and 50% 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 RCs.
“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 [its] innovative actinium-based platform to develop RCs as foundational regimens.”
The acquisition also brings “new expertise and pioneering R&D, manufacturing and supply chain capabilities in actinium-based RCs to AZ” and strengthens its presence in Canada, the Anglo-Swedish drugmaker said.
The companies have been collaborating on the development of next-generation RCs and combination cancer therapies since 2020.
The original partnership, worth approximately $45m, has already produced FPI-2068, an EGFR-cMET targeted RC currently in early-stage clinical development.
Commenting on the intended acquisition, Fusion’s chief executive officer, John Valliant, said: “Expanding on our existing collaboration with AZ, where we have advanced FPI-2068… gives us a unique opportunity to accelerate the development of next-generation RCs with the aim of transforming patient outcomes.”