AstraZeneca to buy Fusion Pharma for up to US$2.4 billion
BNN Bloomberg
AstraZeneca Plc agreed to buy Fusion Pharmaceuticals Inc. for as much as US$2.4 billion as European drugmakers continue their spree of deals of promising biotech companies.
The U.K.-based drug company said it will pay $21 a share for Fusion, or $2 billion in cash upfront, plus a further $400 million depending on milestones being achieved. The full amount equates to a premium of 126 per cent to Fusion’s closing price on Monday.
Fusion is a clinical-stage biotech company developing radioconjugates that deliver radioactive isotopes directly to cancer cells in a targeted way, minimizing damage to healthy cells. Astra believes that radioconjugates are going to help redefine cancer therapy worldwide.
After a shift in focus to develop Covid-19 vaccines during the pandemic, the Fusion deal marks a return to Chief Executive Officer Pascal Soriot’s core focus on oncology. Smart bets he’s made on cancer treatments in the past have been credited for transforming AstraZeneca’s fortunes over the past decade.
