AstraZeneca to Acquire Gracell Biotechnologies for $1.2 Billion to Expand Cell Therapies Pipelines
AstraZeneca, the Anglo-Swiss pharmaceutical company, has announced its plans to acquire Gracell Biotechnologies Inc., a Chinese biopharmaceutical company, for up to $1.2 billion. The acquisition aims to expand AstraZeneca’s cell therapies pipelines and strengthen its presence in the field of cell therapy.
The Deal Details
Under the definitive agreement, AstraZeneca will pay $2 per ordinary share of Gracell, along with a non-tradable contingent value right of $0.3 per ordinary share. The upfront payment amounts to approximately $1 billion, with an additional $0.2 billion payable upon reaching specified regulatory milestones. The transaction is expected to be completed in the first quarter of 2024.
Once the acquisition is finalized, Gracell will operate as a wholly owned subsidiary of AstraZeneca, with operations in China and the United States. It will be delisted from the NASDAQ Biotechnology Index.
AstraZeneca’s Expansion into Cell Therapy
Gracell, established in 2017, is known for its FasTCAR platform, which expedites the process of CAR-T-cell therapy. This innovative therapy targets disease-causing cells by reprogramming a patient’s immune T-cells.
AstraZeneca views this acquisition as an opportunity to enhance its growing pipeline of cell therapies. The move signifies AstraZeneca’s intention to increase its involvement in the field of cell therapy, where it currently lags behind companies like Novartis and Gilead.
AstraZeneca’s Focus on China
AstraZeneca is one of the largest drugmakers in China and has been actively pursuing partnerships and collaborations in the region. In June, there were reports of the company planning to spin off its business in China. Last month, AstraZeneca entered into a licensing deal for an experimental anti-obesity pill with China’s Eccogene. Additionally, in August, it announced a contract manufacturing deal with CanSino Biologics for its messenger RNA technology vaccine program.
Leon Wang, executive vice president and international president of AstraZeneca, stated earlier this year that the company is actively seeking partners in China. AstraZeneca has signed three licensing deals with Chinese companies, demonstrating its commitment to expanding its presence in the country.
Conclusion
The acquisition of Gracell Biotechnologies by AstraZeneca for $1.2 billion represents a strategic move to expand its cell therapies pipelines. By acquiring Gracell and its FasTCAR platform, AstraZeneca aims to strengthen its position in the field of cell therapy and catch up with industry leaders. This acquisition aligns with AstraZeneca’s focus on the Chinese market and its efforts to forge partnerships and collaborations in the region.
Reuters contributed to this report.
