McMaster University touts that the move “will be one of the highest-valued acquisitions of a Canadian university spinout company.” Photo Credit: Facebook/McMaster University.
British-Swedish pharmaceutical and biotechnology giant AstraZeneca, known for developing one of the COVID-19 vaccines, is set to acquire Fusion Pharmaceuticals, a Hamilton-based company founded by a McMaster University professor, for $2.4 billion USD.
Fusion is a clinical-stage oncology company that is focused on developing precision cancer medicines.
The company is working with radioconjugates (RCs), which “combine the precise targeting of antibodies, small molecules or peptides with potent medical radioisotopes to deliver radiation directly to cancer cells.”
Fusion announced that they have officially entered into a “definitive agreement to be acquired by AstraZeneca.”
They will continue to work out of McMaster Innovation Park on Longwood Road South.
A press release states that the acquisition is a “major step forward in AstraZeneca delivering on its ambition to transform cancer treatment and outcomes for patients by replacing traditional regimens like chemotherapy and radiotherapy with more targeted treatments.”
McMaster University touts that the move “will be one of the highest-valued acquisitions of a Canadian university spinout company.”
Fusion’s Founder and CEO John Valliant is a professor of Chemistry and Chemical Biology at McMaster University and the company reportedly spun out of the McMaster Centre for Probe Development and Commercialization.
Valliant said that the transaction “is recognition of Fusion’s innovative science, and gives us a unique opportunity to accelerate the development of next-generation radioconjugates with the aim of transforming patient outcomes.”
McMaster President David Farrar added that the university is “proud to have played a part in enabling Fusion’s incredible success.”
“For many years, McMaster has been committed to supporting entrepreneurship and innovation, on our campus and in our region, he added.
“This agreement speaks to our researchers’ ability to convert their world-class research into innovations that generate economic activity, create jobs and, most important, improve health outcomes for patients in Canada and globally.”
Fusion shareholders will receive $21 USD per share in cash at closing plus a non-transferrable contingent value right (CVR) of $3 USD per share, representing a total translation value of approximately $2.4 billion.
The upfront cash portion of the consideration represents a transaction value of approximately $2 billion, a 97 per cent premium to Fusion’s closing market price of $10.64 on March 18, 2024 (the day before the announcement), and an 85 per cent premium to the March 18 30-day volume-weighted average price (VWAP) of $11.37.
It should be noted that the deal is expected to close by June 30, 2024, and still requires two-thirds support from Fusion shareholders.
Based in Hamilton, he reaches hundreds of thousands of people monthly on Facebook, Instagram, TikTok, and Twitter. He has been published in The Hamilton Spectator, Stoney Creek News, and Bay Observer. He has also been a segment host with Cable 14 Hamilton. In 2017, he received the Chancellor Full Tuition Scholarship from the University of Ottawa (BA, 2022). He has also received the Governor General’s Academic Medal. He formerly worked in a non-partisan role on Parliament Hill in Ottawa.
