AstraZeneca to acquire Fusion

AstraZeneca PLC, the UK and Sweden based biopharmaceutical company, has agreed to acquire all the shares in Fusion Pharmaceuticals Inc., the Canada based clinical-stage biopharmaceutical company, that develops next-generation radioconjugates (RCs), at a USD 21 per share price in cash plus a non-transferrable contingent value right (CVR) of USD 3 per share in cash payable upon the achievement of a specified regulatory milestone, representing a total transaction value of approximately USD 2.4bn. The upfront cash portion of the consideration represents a transaction value of approximately USD 2bn, a 97% premium to Fusions closing market price of USD 10.64 on March 18, 2024, and an 85% premium to the 30-day volume-weighted average price (VWAP) of USD 11.37 before the announcement. Combined, the upfront and maximum potential contingent value payments represent, if achieved, a transaction value of approximately USD 2.4bn, a 126% premium to Fusions closing market price on March 18, 2024, and a 111% premium to the 30-day VWAP. As part of the transaction, AstraZeneca will acquire the cash, cash equivalents and short-term investments on Fusions balance sheet, which totaled USD 234m as of December 31, 2023.