AstraZeneca to buy China-based Gracell Biotechnologies in $1.2 bln deal (updated)

Gracell Biotechnologies

26/12/2023 08:26

(Adds details in paragraphs 2-6)
       Dec 26 (Reuters) - AstraZeneca  AZN.L  said on Tuesday
it will buy China-based Gracell Biotechnologies  GRCL.O  for up
to $1.2 billion as the British pharma company furthers its cell
therapy ambitions.
       The cash deal aimed at bolstering AstraZeneca's portfolio
values U.S.-listed Gracell at $2 per ordinary share or $10 per
ADS of Gracell, plus a non-tradable contingent value right of
$0.30 per ordinary share, if certain regulatory milestones are
met.
    "The proposed acquisition of Gracell will complement
AstraZeneca's existing capabilities and previous investments in
cell therapy, where we have established our presence in CAR-T
and T-cell receptor therapies in solid tumours", AstraZeneca's 
Oncology R&D Vice President Susan Galbraith said in a statement.
    Autologous CAR-T is a cell therapy created by reprogramming
a patient's immune T-cells, a key part of the body's immune
response, to target disease-causing cells. Gracell's FasTCAR
platform enhances T-cell fitness and could potentially improve
the effectiveness of treatment in patients.
    AstraZeneca will also acquire Gracell's cash, cash
equivalents and short-term investments of $234.1 million as of
Sept. 30 2023 and the deal is expected to close in the first
quarter of 2024, according to the statement.
        Gracell will operate as a wholly owned subsidiary of the
London-listed company with operations in China and the US,
without impacting AstraZeneca's financial guidance for 2023, the
companies said.  

 (Reporting by Urvi Dugar in Bengaluru; Editing by Sonia Cheema
and Nivedita Bhattacharjee)
 ((UrviManoj.Dugar@thomsonreuters.com;))