Britain’s biggest drugmaker, AstraZeneca, is to buy a Canadian cancer specialist focused on next-generation treatments for $2.4bn (£1.9bn), the latest in a string of acquisitions made to strengthen its portfolio of new medicines.

The Anglo-Swedish company struck an agreement to acquire Fusion Pharmaceuticals, which is developing next-generation radioconjugates that offer an alternative to chemotherapy and radiotherapy. It has emerged as a new type of cancer treatment in recent years, and delivers a radioactive isotope directly to cancer cells through precise targeting using molecules such as antibodies, peptides or small molecules.

Compared with traditional radiotherapy, the new medicines minimise damage to healthy cells and enable access to tumours not reachable through external beam radiation. They are based on actinium, a radioactive element.

Fusion’s most advanced treatment, FPI-2265, is for patients with metastatic prostate cancer, where removal of the prostate cannot provide a cure. It is being tested on patients in intermediate (phase II) trials.

The deal will bring new expertise, R&D and manufacturing to AstraZeneca’s cancer portfolio, and strengthen its presence in Canada. The company already has a collaboration with Fusion.

Susan Galbraith, who runs AstraZeneca’s oncology R&D operation, said: “Between 30% and 50% 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.

“Together with Fusion, we have an opportunity to accelerate the development of FPI-2265 as a potential new treatment for prostate cancer, and to harness their innovative actinium-based platform to develop radioconjugates as foundational regimens.”

Susannah Streeter, the head of money and markets at Hargreaves Lansdown, said: “AstraZeneca is very much at the forefront of new ways to treat cancer and is not afraid to make multiple bets on potential first-in-class candidates.

“Cancer treatments already represent a third of sales for AstraZeneca and remain a key growth driver. Often these treatments can maintain high growth levels stretching into the future as patient access improves, approvals are gained in new markets, and new use cases pop up through clinical trials. But product development can be very expensive in terms of research and marketing, so the company is planning for growth through acquisition to avoid a potential drag on profits of focusing purely on long-term internal drug development.”

Get set for the working day – we'll point you to all the business news and analysis you need every morning

after newsletter promotion

AstraZeneca has made acquisitions in various areas and recently completed the $1.2bn acquisition of Gracell Biotechnologies, which is developing cell therapies for cancer and autoimmune diseases and has operations in China and the US.

In November, AstraZeneca made a big push into the weight-loss drug market, striking an exclusive licence agreement with a Chinese company for an obesity and type 2 diabetes pill that is in early-stage development.