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Companies focused on radiopharmaceuticals traded higher on Tuesday after AstraZeneca (NASDAQ:AZN) agreed to acquire its partner Fusion Pharma (NASDAQ:FUSN), marking the latest M&A deal for a highly popular drug class.
The British drugmaker has partnered with Fusion (FUSN) since 2020, and its M&A offer, which indicates a $21.00 per share in cash plus a deal sweetener, implies a total transaction value of $2.4B for the Canadian biotech.
The deal’s 97% premium indicates big pharma’s rising interest in radiopharmaceuticals. The global market for radiopharma is expected to reach more than $13B by 2032 with over 10% CAGR, according to Precedence Research, a global provider of market insights.
While Swiss drugmaker Novartis (NVS) (OTCPK:NVSEF) is a dominant player in the radiopharma space with its cancer drugs Pluvicto and Lutathera, others are catching up.
In December, Eli Lilly (LLY) closed its $1.4B acquisition of Point Biopharma Global (PNT), a biotech focused on radioligand therapies.
Last month, Bristol Myers (BMY) acquired RayzeBio (RYZB), a developer of clinical-stage radiopharmaceuticals, for $4.1B, outbidding at least two other significant offers from rivals.
In May 2023, German conglomerate Bayer (OTCPK:BAYRY) partnered with Bicycle Therapeutics (BCYC) to develop a new class of radiopharmaceuticals called Bicycle radioconjugates for cancer.
The AZN-FUSN deal has reignited interest in the radiopharma space. While Fusion (FUSN) climbed more than 100% in the premarket, its peers Perspective Therapeutics (CATX), Actinium Pharmaceuticals (ATNM), and Cellectar Biosciences (CLRB) have also made notable gains after the news.
Other drug developers focused on radiopharmaceuticals include Lantheus Holdings (LNTH), CASI Pharmaceuticals (CASI), and Telix Pharma (OTCPK:TLPPF).