AstraZeneca PLC (LSE:AZN) is set to acquire Gracell Biotechnologies, the Chinese company specialising in innovative cancer and autoimmune disease treatments, for US$1.2 billion.
The US$2 per share acquisition provides AstraZeneca with access to platforms potentially shortening manufacturing times and enhancing the development of more efficient cell therapy treatments.
Gracell's T-cell therapy, GC012F, is particularly promising for blood cancers and Lupus.
Susan Galbraith, AstraZeneca's executive vice president of Oncology Research and Development, said in a company statement: “The proposed acquisition of Gracell will complement AstraZeneca’s existing capabilities and previous investments in cell therapy.
“GC012F will accelerate our cell therapy strategy in haematology, with the opportunity to bring a potential best-in-class treatment to patients living with blood cancers using a differentiated manufacturing process, as well as exploring the potential for cell therapy to reset the immune response in autoimmune diseases.”
The initial purchase of Gracell shares at US$2 each is valued at US$1 billion, with additional share purchases linked to regulatory milestones potentially pushing the deal's value to US$1.2 billion.
William Cao, founder, chairman and CEO of Gracell, said: “We look forward to working with AstraZeneca to accelerate our shared goal of bringing transformative cell therapies to more patients living with debilitating diseases.”
AstraZeneca has previously partnered with Chinese firms, such as La Nova Medicines and Eccogene, with boss Pascal Soriot having previously emphasised that China is “completely open” for investment.
Gracell will operate as an AstraZeneca subsidiary in the US and China following the deal's expected closure in the first quarter of the coming year.
The acquisition doesn't affect AstraZeneca's financial guidance for the past year.
AstraZeneca is flat in premarket trading on Wednesday, having closed on Friday at 10,440p.