AstraZeneca to snap up Fusion Pharma for up to $2.4 billion

Shares of Canada-headquartered Fusion Pharmaceuticals (Nasdaq: FUSN) were up more than 95% at $20.80 in pre-market activity, on the news of a takeover bid from UK pharma major AstraZeneca (LSE: AZN) for the company, which is developing next-generation radioconjugates (RCs).

AstraZeneca said the acquisition marks a major step forward in its delivering on its ambition to transform cancer treatment and outcomes for patients by replacing traditional regimens like chemotherapy and radiotherapy with more targeted treatments. The deal also comes just days after AstraZeneca announced its plan to acquire French rare endocrine disease company Amolyt.

This acquisition complements AstraZeneca's leading oncology portfolio with the addition of the Fusion pipeline of RCs, including its most advanced program, 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.