AstraZeneca has signed to acquire Canadian radiotherapy biotech firm, Fusion, for $2.4bn (£1.9bn).

The Anglo-Swedish pharmaceutical firm said the deal “marks a major step forward” in its ambition to “transform cancer treatment and outcomes for patients by replacing traditional regimens” such as chemotherapy and radiotherapy with more targeted treatments.

As part of the acquisition, AstraZeneca will pay $21 (£16.52) per Fusion share, with an additional $3 (£2.36) per share when regulatory milestones are reached.

The deal adds Fusion’s pipeline of radioconjugates (RCs) to its oncology portfolio, which includes its most advanced programme, FPI-2265, which is a potential new treatment for patients with metastatic castration-resistant prostate cancer, that is currently in Phase II trials.

Executive vice president for oncology R&D and AstraZeneca, Susan Galbraith, said: "Between thirty and fifty per cent 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.

"Together with Fusion, we have an opportunity to accelerate the development of FPI-2265 as a potential new treatment for prostate cancer, and to harness their innovative actinium-based platform to develop radioconjugates as foundational regimens."

The acquisition is one of a number by AstraZeneca in recent months, which includes the takeover of firms such as Amolyt and Gracell.

Following the deal closing, Fusion will become a wholly owned subsidiary of AstraZeneca, with operations continuing in the US and Canada.

Chief executive officer at Fusion, John Valliant, added: "This acquisition combines Fusion's expertise and capabilities in radioconjugates, including our industry-leading radiopharmaceutical R&D, pipeline, manufacturing and actinium-225 supply chain, with AstraZeneca's leadership in small molecules and biologics engineering to develop novel radioconjugates.

"Expanding on our existing collaboration with AstraZeneca where we have advanced FPI-2068, an EGFR-cMET targeted radioconjugate into Phase I clinical trials, gives us a unique opportunity to accelerate the development of next-generation radioconjugates with the aim of transforming patient outcomes."

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