AstraZeneca to buy China's Gracell Biotechnologies in $1.2 billion deal
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[December 29, 2023]
By Urvi Manoj Dugar and Christy Santhosh
(Reuters) -AstraZeneca said on Tuesday it will buy Gracell
Biotechnologies for up to $1.2 billion as the Anglo-Swedish pharma
company furthers its cell therapy ambitions and boosts its presence 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 American Depository Share, of Gracell, representing a premium of
61.6% from its last close on Dec. 22.
The shareholders will also receive a non-tradable contingent value right
of $0.30 per ordinary share, if certain regulatory milestones are met.
Shares of China-headquartered Gracell surged 60% in premarket trading in
the United States.
![](http://archives.lincolndailynews.com/2023/Dec/29/images/ads/current/charrons_bch_2022.png)
Gracell's CAR-T cell therapy works by extracting disease-fighting white
blood cells known as T-cells from a patient, re-engineered to attack
cancer and infused back into the body.
H.C. Wainwright analyst Emily Bodnar said this could be AstraZeneca's
way of getting more into cell therapy as it is not as heavily involved
in the space like Novartis and Gilead.
AstraZeneca will also acquire Gracell's cash, cash equivalents and
short-term investments of $234.1 million as of Sept. 30, 2023. The deal
is expected to close in the first quarter of 2024, according to the
statement.
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The logo for AstraZeneca is seen outside its North America
headquarters in Wilmington, Delaware, U.S., March 22, 2021.
REUTERS/Rachel Wisniewski/File Photo
![](http://archives.lincolndailynews.com/2023/Dec/29/images/ads/current/peasleymemorials_lda_2022.png) AstraZeneca, one of the biggest
drugmakers in China, had drafted plans to spin off its business in
the region, according to media reports in June.
Last month, AstraZeneca agreed to a licensing deal for an
experimental anti-obesity pill from China's Eccogene, and in August
it announced a contract manufacturing deal with CanSino Biologics
for its messenger RNA technology vaccine program.
AstraZeneca signed three licensing deals with Chinese companies, CEO
Pascal Soriot said earlier this year.
(Reporting by Urvi Dugar and Christy Santhosh in Bengaluru; Editing
by Sonia Cheema, Nivedita Bhattacharjee and Krishna Chandra Eluri)
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