A Canadian pharmaceutical company that focuses on developing next-generation therapies for prostate cancer has announced a definitive agreement to be acquired by U.K.-based AstraZeneca for approximately US$2.4 billion.

With the deal announced on Tuesday, Hamilton-based Fusion Pharmaceuticals Inc. will become a wholly-owned subsidiary of AstraZeneca, with operations continuing in Canada.

Fusion specializes in radioconjugates (RCs), an emerging modality in cancer treatment that precisely targets cancer cells with radioactive isotopes. The approach differs from traditional forms of cancer treatment, such as chemotherapy and radiotherapy, which can ultimately damage healthy cells.

“The whole premise was, instead of using external beam radiation, in which you try to shine radiation from outside the body on tumour cells, to actually use things that could bring radiation directly to the cancer cells themselves,” said John Valliant, CEO of Fusion Pharmaceuticals, in an interview with BNN Bloomberg on Tuesday.

In a Fusion Pharmaceuticals press release, the company said this technology can allow oncologists to access tumours that would not be reachable through external beam radiation.

“We’ve been pioneering that technology over a number of years and entered into a partnership with AstraZeneca who is one of the world leaders in developing cancer therapies,” Valliant told BNN Bloomberg.

“So it was a great match between our approach and their approach and we’ve been working together for quite some time. Obviously this is sort of the culmination and the bringing together of two strong groups.”

Valliant mentioned that the field of radiopharmaceuticals has been around for quite some time “but now it’s really hitting its stride.”

“There are a number of large companies, small companies, that are working to bring this technology to bear on a number of different cancer types,” he explained.

Susan Galbraith, executive vice president of oncology and R&D at AstraZeneca, says the partnership can accelerate the goal of helping more patients by delivering more precise therapies.

"Between thirty and fifty per cent of patients with cancer today receive radiotherapy at some point during treatment, and the acquisition of Fusion furthers our ambition to transform this aspect of care with next-generation radioconjugates,” she said in the press release.

Valliant said the acquisition indicates that “big pharma has recognized the potential” of this new technology.

“We’re very fortunate to work with AstraZeneca, one of the leaders in the space, to really bring this therapy to more patients,” he said.

To watch the rest of Valliant’s interview with BNN Bloomberg