AstraZeneca is set to acquire Gracell
A clinical-stage autologous cell therapy that focuses on treating hematologic malignancies and autoimmune diseases, along with a unique manufacturing platform
AstraZeneca has announced its plans to acquire Gracell Biotechnologies, a clinical-stage biopharmaceutical company that focuses on developing cell therapies for cancer and autoimmune diseases. The deal, valued at around $1.2 billion, marks an important step for AstraZeneca in expanding its portfolio. The transaction is anticipated to be finalized in the first quarter of 2024. After the acquisition, Gracell will function as a fully owned subsidiary of AstraZeneca, conducting operations in both China and the United States.
As part of the deal, AstraZeneca will purchase all of Gracell's shares through a merger. The price for each ordinary share will be $2.00 in cash at closing, with an additional non-tradable contingent value right of $0.30 per share in cash. This extra payment will be made once a specific regulatory milestone is reached.
The initial cash amount involved in the transaction is around $1 billion. If certain conditions are met, there is a possibility of additional contingent value payments, which could bring the total transaction value to approximately $1.2 billion. As part of the transaction, AstraZeneca will also acquire the cash, cash equivalents, and short-term investments on Gracell’s balance sheet, totaling $234.1 million as of Sept. 30, 2023, according to the press release.
AstraZeneca anticipates that the planned acquisition will enhance its expanding portfolio of cell therapies. This includes the incorporation of GC012F, a groundbreaking B cell maturation antigen (BCMA) and CD19 dual-targeting autologous chimeric antigen receptor T-cell (CAR-T) therapy developed by Gracell. Gracell is working on the development of GC012F, a potential treatment for multiple myeloma, hematologic malignancies, and autoimmune diseases like systemic lupus erythematosus (SLE). Gracell is currently conducting a Phase Ib/II trial in the US to assess the effectiveness of GC012F in the treatment of relapsed or refractory multiple myeloma.
Alongside the cell therapy candidate, AstraZeneca will also acquire Gracell's exclusive cell therapy manufacturing platform, FasTCAR. The technology was introduced in 2017 and enables the efficient production of CAR-T therapies within a short timeframe.
The acquisition of Gracell will enhance AstraZeneca's current capabilities and previous investments in cell therapy. AstraZeneca has already made its mark in CAR-T and T-cell receptor therapies (TCR-Ts) for solid tumors. Susan Galbraith, executive vice-president of Oncology R&D at AstraZeneca, expressed excitement about the potential of GC012F to advance their cell therapy strategy in hematology. The goal is to provide a top-notch treatment option for patients with blood cancers by utilizing a unique manufacturing process. Additionally, they are also exploring the potential of cell therapy to reset the immune response in autoimmune diseases. This development has the potential to make a significant impact in the field.
We are excited to collaborate with AstraZeneca in our mission to expedite the development of groundbreaking cell therapies for patients suffering from severe illnesses. Through collaboration and utilization of our knowledge and assets, we can discover innovative methods to utilize the Gracell FasTCAR manufacturing platform. We are confident that this platform can enhance the effectiveness of engineered T cells and lead the way in advancing personalized cell therapies, stated William Cao, the founder, chairman, and CEO of Gracell, in the press release.
Source: AstraZeneca
