AstraZeneca To Acquire Gracell Biotech For up to USD 1.2 Billion | India Pharma Outlook

AstraZeneca To Acquire Gracell Biotech For up to USD 1.2 Billion

India Pharma Outlook Team | Wednesday, 27 December 2023

 India Pharma Outlook Team

AstraZeneca announced a $1.2 billion acquisition of Gracell Biotechnologies as the Anglo-Swedish pharma firm expands its cell treatment ambitions and expands its footprint in China, the world's second-largest pharmaceuticals market.

The cash deal, which adds several experimental therapies to AstraZeneca's portfolio, values 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, as per economic times.

Gracell shares jumped 65% in premarket trading in the United States. AstraZeneca is one of the largest drugmakers in the Asian country, accounting for 13% of total sales in 2022.

"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-Tand T-cell receptor therapies in solid tumours," AstraZeneca'sOncology R&D Vice President Susan Galbraith added.

Autologous CAR-T is a cell therapy that involves reprogramming a patient's immunological T-cells, which are an important part of the immune response, to target disease-causing cells. Gracell's FasTCAR platform improves T-cell fitness and may improve therapy effectiveness in patients. AstraZeneca will also acquire Gracell's $234.1 million in cash, cash equivalents, and short-term investments as of September 30, 2023.

AstraZeneca plc is an Anglo-Swedish multinational pharmaceutical and biotechnology corporation headquartered in Cambridge, England, on the Cambridge Biomedical Campus. Its product portfolio includes treatments for important disorders in cancer, cardiology, gastrointestinal, infection, neurology, respiratory, and inflammation. It was involved in the development of the Oxford-AstraZeneca COVID-19 vaccine.

© 2024 India Pharma Outlook. All Rights Reserved.