Recent M&A Bodes Well For Targeted Cancer Therapy Player Fusion Pharmaceuticals, Analyst Say AstraZeneca Is Favorably Positioned

With recent merger and acquisition deals in the targeted radiopharmaceutical therapy (TRT) space, on Tuesday, Oppenheimer noted that Fusion Pharmaceuticals Inc FUSN is potentially the sole remaining clinical-stage player with a robust supply chain. 

In September, Oppenheimer initiated coverage on Fusion Pharmaceuticals, citing the company's pipeline as among the best in the space with alpha-emitter-based targeted radionuclide therapies.

Most recently, Bristol Myers Squibb & Co BMY has agreed to acquire RayzeBio Inc RYZB for $62.50 per share in cash, for a total equity value of approximately $4.1 billion, or $3.6 billion net of estimated cash acquired. 

On Wednesday, Eli Lilly And Co LLY completed the acquisition of POINT Biopharma Global Inc PNT for $12.50 per share in cash, an aggregate of approximately $1.4 billion.

These transactions indicate that Fusion stands as the final feasible option, poised to serve as a cornerstone for a major pharmaceutical company aiming to establish a significant presence in targeted radiopharmaceuticals.

The analyst writes that Fusion stands out as the sole TRT player engaged in a productive therapeutic partnership with AstraZeneca Plc AZN, which was announced in 2020.

The collaboration concentrates on advancing AstraZeneca and Fusion candidates as targeted radiotherapies, with a profit-sharing agreement between the partnering entities. 

The partnership could potentially position AstraZeneca favorably for future acquisition opportunities.

Raymond James upgraded Fusion Pharmaceuticals from Outperform to a Strong Buy, with a price target of $15, up from $12.

Price Action: FUSN shares are up 11.4% at $8.88 on the last check Wednesday.