Acquisition of Gracell completed
AstraZeneca has agreed to acquire Gracell Biotechnologies, a company developing cell therapies for cancer and autoimmune diseases, for up to $1.2bn. The deal will add GC012F, a dual-targeting CAR-T therapy for multiple myeloma, to AstraZeneca’s portfolio of cell therapies.
Gracell Biotechnologies will operate as a wholly owned subsidiary of AstraZeneca, with operations in China and the US.
Gracell’s FasTCAR platform enables faster and more efficient production of autologous CAR-T, a type of cell therapy that uses a patient’s own immune cells to fight disease. The technology also enhances the fitness and potency of the CAR-T cells, and could be applied to other diseases, including rare ones.
AstraZeneca will pay $2.00 per Gracell Biotechnologies share in cash at closing, plus a contingent value right of $0.30 per share upon a regulatory milestone. The upfront payment represents a 62% premium to Gracell’s closing price on 22nd December 2023. The deal is expected to close in the first quarter of 2024, subject to approvals. It will not affect AstraZeneca’s financial guidance for 2023.
Susan Galbraith, Executive Vice President, Oncology R&D, AstraZeneca, said: “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-T and T-cell receptor therapies (TCR-Ts) in solid tumours.
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.”
Dr. William Cao, founder, Chairman and CEO, 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. By combining our expertise and resources, we can unlock new ways to harness the Gracell FasTCAR manufacturing platform, which we believe has the potential to optimise the therapeutic profile of engineered T cells, to pioneer the next generation of autologous cell therapies.”
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