![AstraZeneca to buy China's Gracell Biotechnologies in $1.2 billion deal AstraZeneca to buy China's Gracell Biotechnologies in $1.2 billion deal](https://images.cnbctv18.com/wp-content/uploads/2020/07/astrazeneca-1019x573.jpg?impolicy=website&width=590&height=264)
AstraZeneca said on Tuesday it will buy Gracell Biotechnologies (GRCL.O) 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 December 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.
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 (NOVN.S) and Gilead (GILD.O).
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.
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.
(Edited by : Anshul)
First Published: Dec 27, 2023 10:21 AM IST
Check out our in-depth Market Coverage, Business News & get real-time Stock Market Updates on CNBC-TV18. Also, Watch our channels CNBC-TV18, CNBC Awaaz and CNBC Bajar Live on-the-go!
![](/static/images/loksabha2024/loksabha2024.png)
![](/static/images/loksabha2024/loksabha2024.png)
Odisha's new CM — who is Mohan Charan Majhi and what prompted the BJP to choose him
Jun 13, 2024 2:54 PM
Election 2024: 504 out of 543 newly-elected MPs are ‘crorepatis’ – Check 10 richest members in 18th Lok Sabha
Jun 12, 2024 9:55 PM
BJP to start nationwide organisational rejig, new party president to be elected soon
Jun 12, 2024 9:31 AM
New Lok Sabha Speaker to be elected in special 8-day session: Report
Jun 11, 2024 6:28 PM