Fusion Pharmaceuticals (NASDAQ:FUSN) stock is rocketing higher on Tuesday after the clinical-stage oncology company announced an acquisition deal with AstraZeneca (NASDAQ:AZN).
This has AstraZeneca spending $21 per share to acquire all outstanding shares of FUSN stock. That represents a 97% premium to the stock’s closing price on Monday.
Investors will also note that the offer includes one contingent contingent value right (CVR) of $3 per share. This is payable to shareholders if certain regulatory milestones are met.
The upfront price of the offer for Fusion Pharmaceuticals comes to $2 billion. When adding the CVR it climbs to $2.4 billion. It also represents a 126% premium to the stock’s closing price yesterday.
Why Does AZN Want FUSN Stock?
Susan Galbraith, Executive Vice President of Oncology R&D at AstraZeneca, explains in a statement.
“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.”
With today’s acquisition news comes heavy trading of FUSN stock. That has more than 1.5 million shares changing hands as of this writing. That’s already above its daily average trading volume of about 1.2 million shares.
FUSN stock is up 101.2% as of Tuesday morning.
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On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
