AstraZeneca To Buy Gracell For Up To $1.2 Bln

(RTTNews) - Biopharmaceutical major AstraZeneca PLC (AZN), announced on Tuesday that it has entered into a definitive agreement to acquire Gracell Biotechnologies Inc. (GRCL) for up to $1.2 billion in an all-cash transaction.

The acquisition is expected to further AstraZeneca's cell therapy ambitions by growing a pipeline of cell therapies with GC012F, a novel, clinical-stage FasTCAR-enabled BCMA and CD19 dual-targeting autologous chimeric antigen receptor T-cell (CAR-T) therapy.

As per the company, the Gracell FasTCAR platform significantly shortens manufacturing time, enhances T cell fitness, and potentially improves the effectiveness of autologous CAR-T treatment in patients. Under the terms of the agreement, Astra Zeneca will acquire all of Gracell's share capital for a price of $2 per share representing a transaction value of around $1 billion.

Additionally, the company will also pay a non-tradable contingent value right of $0.30 per ordinary share in cash upon achievement of a specified regulatory milestone.

Together, the total value of the acquisition can go up to $1.2 billion, an 86 percent premium to Gracell's closing market price on December 22, and a 192 percent premium to the 60-day VWAP.

Further, the company is expected to acquire the cash, cash equivalents and short-term investments on Gracell's balance sheet, totaling $234.1 million as on September 30.

Astra Zeneca's guidance for 2023 is not affected by this acquisition the company said in a statement.

The transaction is expected to close in the first quarter of 2024.

On Friday, Astra Zeneca shares closed at $66.29 down 0.02% and Gracell Shares closed at $5.97, down 3.55% in the after hours on the Nasdaq.