AstraZeneca PLC (NASDAQ:AZN) has announced a definitive agreement to acquire Gracell Biotechnologies Inc. (NASDAQ:GRCL) for a total deal value of up to $1.2 billion. Gracell, a clinical-stage biopharmaceutical company, is developing the FasTCAR-enabled BCMA and CD19 dual-targeting autologous chimeric antigen receptor T-cell therapy GC012F. This therapy is being explored as a potential treatment for multiple myeloma, as well as other haematologic malignancies and autoimmune diseases.
The acquisition will enhance AstraZeneca’s cell therapy portfolio, adding GC012F to its innovative cell therapies being studied for cancer and autoimmune diseases. GC012F is currently under evaluation in a phase Ib/II study for the treatment of relapsed or refractory multiple myeloma in the United States.
The agreement stipulates that AstraZeneca will acquire all Gracell shares for $2 per share in cash, amounting to an upfront cash payment of approximately $1 billion. The deal also includes a non-tradable contingent value right of up to $0.30 per share in cash, contingent upon achieving certain regulatory milestones. Combining the upfront payment and potential contingent value payments brings the total transaction value to $1.2 billion, representing an 86% premium over Gracell’s closing market price on Dec 22, 2023.
The acquisition is expected to close in the first quarter of 2024, subject to customary and regulatory conditions. AstraZeneca is also entitled to acquire the cash and short-term investments on Gracell’s balance sheet, totaling $234.1 million as of Sep 30, 2023.
This move by AstraZeneca aligns with the ongoing trend in 2023, showcasing a growing interest in biotech companies specializing in innovative cancer treatments. In a similar vein, AbbVie (NYSE:ABBV) announced the acquisition of ImmunoGen for $10.1 billion in November 2023, including its new ovarian cancer drug, Elahere. Additionally, Bristol Myers (NYSE:BMY) revealed plans to acquire Mirati Therapeutics for a total equity value of $4.8 billion in October 2023, adding Mirati’s lung cancer drug, Krazati (adagrasib), to its robust oncology portfolio.
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