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On March 19, 2024, pharmaceutical giants AstraZeneca (AZN) and Fusion Pharmaceuticals Inc. (FUSN) entered into a merger agreement. Under the terms of the agreement, AstraZeneca will acquire Fusion Pharmaceuticals in a deal valued at $2.4 billion. Under the terms of the agreement, shareholders of Fusion Pharmaceuticals will receive $21.00 per share in cash at closing plus a non-transferable contingent value right (CVR) of $3.00 per share in cash payable upon the achievement of a specified regulatory milestone.
The deal represents a hefty premium of 126% based on Fusion’s closing price of $10.64 on March 18, 2024, and a 111% premium over Fusion’s 30-day average trading price.
In the event of termination of the merger agreement, Fusion Pharmaceuticals will be liable to pay AstraZeneca a termination fee of $71.68 million. Conversely, if AstraZeneca terminates the deal, they will owe Fusion Pharmaceutical. a termination fee of $102.4 million.
The merger agreement stipulates a completion deadline of September 18, 2024. Centerview Partners acted as financial advisors and Goodwin Procter LLP as legal advisors to Fusion Pharmaceuticals Inc.
AstraZeneca is paying 281.97 times sales for Fusion Pharmaceuticals Inc. The stock is optionable.
For more information, refer to the Deal Metrics page here: Deal Metrics for the acquisition of Fusion Pharmaceuticals Inc. (FUSN) by AstraZeneca (AZN)
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