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

Zinger Key Points
  • Fusion Pharmaceuticals stands as the final feasible option, poised to serve as a cornerstone for a major pharmaceutical company.
  • Raymond James upgraded Fusion Pharmaceuticals from Outperform to a Strong Buy.

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.

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