In a strategic move to bolster its presence in China and advance its cell therapy endeavors, AstraZeneca has announced the acquisition of Gracell Biotechnologies for up to $1.2 billion. The cash deal values Gracell at $2 per ordinary share or $10 per American Depository Share, representing a significant 61.6% premium from its last close on December 22. The shareholders will also receive a non-tradable contingent value right of $0.30 per ordinary share, contingent upon the achievement of certain regulatory milestones.
Gracell, headquartered in China, specializes in CAR-T cell therapy, a revolutionary approach involving the extraction of T-cells from patients, re-engineering them to combat cancer, and reintroducing them into the body. AstraZeneca’s move into cell therapy reflects its strategic ambition to expand in this space, where it has not been as extensively involved as competitors like Novartis and Gilead.
Aside from gaining access to Gracell’s experimental therapies, AstraZeneca will also acquire the company’s cash, cash equivalents, and short-term investments totaling $234.1 million as of September 30, 2023. The completion of the deal is anticipated in the first quarter of 2024.
This acquisition aligns with AstraZeneca’s broader initiatives in China, where it is a major player. Recent developments include plans to spin off its business in the region, a licensing deal for an experimental anti-obesity pill from Eccogene, and a contract manufacturing agreement with CanSino Biologics for its messenger RNA technology vaccine program. The acquisition of Gracell marks another strategic milestone for AstraZeneca in solidifying its position in the dynamic Chinese pharmaceutical market.
