HealthCap has recently announced the successful sale of one of its portfolio companies — Fusion Pharmaceuticals — to AstraZeneca, for USD $2.4bn. This milestone marks a significant achievement in HealthCap's commitment to fostering solutions in the field of radiopharmaceuticals.
Johan Christenson, Partner of HealthCap VII Advisor AB, commented: “The acquisition by AstraZeneca not only validates the 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.
The company developed the Targeted Alpha Therapies (TAT) platform together with a proprietary linker technology, enabling Fusion to connect alpha particle emitting isotopes to antibodies to selectively deliver the therapies to tumours.
Fusion 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 recognised the need for a differentiated linker technology to realise the promise of radiopharmaceuticals.
The deal was sourced from HealthCap’s international network and HealthCap participated as the only initial European investor. During these early phases, HealthCap has provided strategic guidance and access to networks within healthcare on top of capital funding.
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 USD 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 USD 3 per share payable upon achievement of a specified regulatory milestone.
