Daily Management Review

AstraZeneca to buy US-based Fusion for $2.4 bln


AstraZeneca, a pharmaceutical business, announced in a news release that it has signed a deal to purchase Fusion Pharmaceuticals, a US-based company that specializes in the development of radiopharmaceuticals.

Each Fusion share will receive $21 in cash from AstraZeneca. If certain milestones are reached, the agreement allows for extra payments of up to $3 per share. The agreement is believed to be worth $2.4 billion in total.

Fusion's share price on Monday closed at $10.64. The company's capitalization has increased by more than 2.5 times (or 165%) in the last 12 months due to anticipation that it would be acquired by bigger companies in the industry.

It is expected that the purchase would be finalized before the second quarter ends.

source: bloomberg.com