04:49 AM EDT, 03/19/2024 (MT Newswires) -- AstraZeneca ( AZN ) said Tuesday it has agreed to acquire Fusion Pharmaceuticals ( FUSN ) in a deal valued at about $2.4 billion.

Under the terms of the deal, AstraZeneca ( AZN ) will pay $21 per share in cash at closing, plus a non-transferable contingent value right of $3 per share in cash payable upon the achievement of a specified regulatory milestone. The upfront cash portion of the consideration represents a transaction value of about $2 billion.

As part of the deal, AstraZeneca ( AZN ) will receive Fusion's cash, cash equivalents and short-term investments worth $234 million, as of Dec. 31.

The transaction is expected to close in Q2, subject to customary closing conditions, including Fusion shareholders' approval and regulatory clearances.

Fusion will become a subsidiary of AstraZeneca ( AZN ), with operations continuing at its Canadian and American facilities.

The deal complements AstraZeneca's ( AZN ) oncology portfolio with the addition of the Fusion pipeline of radioconjugates.

Fusion shares were up more than 95% in recent Tuesday premarket activity.