HealthCap portfolio company Fusion Pharmaceuticals to be acquired by AstraZeneca for up to USD 2.4 billion
Stockholm, 19 March 2024 – HealthCap announces the successful sale of one of its portfolio companies, Fusion Pharmaceuticals (“Fusion”), to AstraZeneca, for USD 2.4bn. This milestone marks a significant achievement in HealthCap’s commitment to fostering innovative solutions in healthcare, particularly in the cutting-edge field of radiopharmaceuticals.
“Fusion’s impressive journey and its contributions to radiopharmaceuticals underscore the immense potential of investing in biotech innovations that can truly make a difference,” said Johan Christenson, Partner of HealthCap VII Advisor AB. “The acquisition by AstraZeneca not only validates the groundbreaking work done by Fusion but also reflects the strength of HealthCap’s investment strategy and its role in building and nurturing high-potential startups in the healthcare sector.”
Fusion is a clinical-stage biopharmaceutical company developing next-generation radiopharmaceuticals as precision medicines for the treatment of cancer. They have developed the Targeted Alpha Therapies (TAT) platform together with a proprietary linker technology that enables Fusion to connect alpha particle emitting isotopes to antibodies and other targeting molecules to selectively deliver the therapies to tumors. The company currently has four clinical programs and a broad early-stage pipeline. Furthermore, significant investments have been made into manufacturing capability as it has been deemed strategically important given the increasing demand of radiopharmaceuticals.
HealthCap initially invested in Fusion in 2017 to help found and build the company through its HealthCap VII fund, as the co-lead investor, together with Johnson & Johnson Innovation (JJDC). Fusion was created to advance novel discoveries in radiopharmaceuticals and was a spin-out from the Canadian Center for Probe Development and Commercialization (CPDC). As pioneers in radiopharmaceutical venture building, HealthCap recognized the need for a differentiated linker technology to realize the promise of radiopharmaceuticals. The deal was sourced from HealthCap’s international network and HealthCap participated as the only initial European investor. HealthCap has played a crucial role in the company’s journey from its inception, providing not just capital, but strategic guidance and access to essential networks within the healthcare ecosystem.
“HealthCap has been instrumental to the success of Fusion. Their strategic guidance and hands-on approach have been invaluable to me as a CEO,” said John Valliant, CEO of Fusion. “We are incredibly excited about this new chapter in our journey. This is a tremendous opportunity to accelerate the development of our groundbreaking treatments and is a recognition of the hard work and innovation of the Fusion team.”
Terms of the Agreement
Under the terms of the agreement, Astra Zeneca will acquire all of Fusion Pharmaceuticals outstanding shares for a total consideration of $2.4Bn, corresponding to a share price of USD 24, a 126% premium to Fusion’s closing market price on March 18, 2024. The deal includes a CVR of $3 per share payable upon achievement of a specified regulatory milestone.
Subject to the satisfaction of customary closing conditions in the acquisition agreement, including regulatory clearances, the transaction is expected to close by the end of Q2 2024.
Read more about the deal here:
About HealthCap
HealthCap is a venture capital firm dedicated to bringing innovative healthcare solutions to the market. The investment strategy focuses on diseases with a high unmet medical need and breakthrough therapies that have the potential to be transformative, change clinical practice, and change the lives of patients suffering from these conditions. Since its inception in 1996 HealthCap backed companies have developed more than 30 pharmaceutical products for market approval, corresponding to almost five percent of all FDA-approved products during that time and brought more than 75 medical device products to market.
For further information, please contact:
Johan Christenson, Partner, HealthCap VII Advisor +46 709 759 866, johan.christenson@healthcap.eu
Björn Odlander, Managing Partner, HealthCap VII Advisor AB, +46 709 759 859, bjorn.odlander@healthcap.eu
