AstraZeneca to acquire Gracell Biotechnologies for $1.2bn to expand cell therapy capabilities

AstraZeneca has announced a definitive agreement to acquire Gracell Biotechnologies Inc. (Gracell, NASDAQ: GRCL) for an upfront cash payment of $1.0 billion, representing a 62% premium to Gracell’s closing market price on December 22, 2023. The deal includes an additional contingent value right of $0.30 per ordinary share, bringing the total potential transaction value to approximately $1.2 billion.

Strategic Impact:

This acquisition significantly enhances AstraZeneca‘s cell therapy portfolio, particularly in hematology and autoimmune diseases. The centerpiece of this deal is GC012F, Gracell’s innovative FasTCAR-enabled CAR-T therapy, which shows promise in treating multiple myeloma and other hematologic malignancies. The FasTCAR platform offers a potential breakthrough in autologous CAR-T treatment, shortening manufacturing time and potentially improving treatment effectiveness.

AstraZeneca to acquire Gracell Biotechnologies to enhance cell therapy pipeline. Photo courtesy of D Wells/Wikimedia Commons.

Statements from Executives:

Susan Galbraith, Executive Vice President of Oncology R&D at AstraZeneca, emphasized the strategic fit of this acquisition, highlighting the potential of GC012F to advance AstraZeneca’s cell therapy strategy in hematology. Dr. William Cao, founder, Chairman, and CEO of Gracell, expressed enthusiasm about joining forces with AstraZeneca to bring transformative cell therapies to more patients.

Financial and Operational Details:

Gracell will continue to operate as a wholly owned subsidiary of AstraZeneca, maintaining its operations in China and the US. The transaction is expected to close in the first quarter of 2024, subject to regulatory clearances and Gracell shareholder approval.

GC012F’s Clinical Potential:

GC012F is currently under clinical evaluation for multiple hematologic malignancies and autoimmune diseases, including a Phase Ib/II trial for relapsed or refractory multiple myeloma in the US.