AstraZeneca snaps up rival to develop pioneering new cancer treatment

astrazeneca

AstraZeneca has snapped up a Canadian rival in a deal worth up to $2.4bn (£1.9bn) as it races to develop pioneering new cancer treatments.

The British drugs company has bought Fusion Pharmaceuticals in an attempt to to replace chemotherapy and radiotherapy with a more targeted alternative.

Fusion, which is based in Ontario, is developing what are known as “radioconjugates” that precisely target cancer cells using molecules such as antibodies.

This way of treating cancer minimises damage to healthy cells, which happens during traditional treatments such as chemotherapy, and also means it is able to reach tumours that cannot be targeted through external beams. Fusion’s treatment for prostate cancer is currently in trials.

Susan Galbraith, executive vice president of oncology research at AstraZeneca, said: “Between 30pc and 50pc of patients with cancer today receive radiotherapy at some point during treatment, and the acquisition of Fusion furthers our ambition to transform this aspect of care with next-generation radioconjugates.”

AstraZeneca is making an upfront payment of $2bn for the Nasdaq-listed business, as well as a further $400m if Fusion hits certain regulatory milestones.

It is the latest move by the British pharma company to bolster its pipeline of cancer drugs. Late last year, it swooped for a Chinese cell therapy specialist for $1.2bn, saying these treatments could help with a variety of cancers in future.

Speaking to The Telegraph in 2022, AstraZeneca executives said they were planning to more than double its portfolio of new cancer drugs by the end of decade, warning that the “massive backlogs in the NHS” had delayed diagnosis for many.

Figures earlier this week revealed that the Covid-19 pandemic had meant almost 20,000 prostate cancer diagnoses were missed.

AstraZeneca executive Dave Frederickson has said the company could become the “number 1 oncology player”, with a spate of new cancer medicines coming to the market.

More than a third of AstraZeneca’s revenues come from its cancer drugs.

It has also started making a push into weight-loss drugs and is working on a new potentially cheaper obesity treatment than existing jabs on the market.

AstraZeneca struck a deal worth up to £1.6bn for an experimental pill being developed by Chinese biotech company Eccogene in November.

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