Pharmaceutical giant AstraZeneca (AZ, NASDAQ: AZN) has announced its intention to fully acquire Gracell Biotechnologies Inc., (NASDAQ: GRCL), a China-based developer of chimeric antigen receptor (CAR) T cell therapies. This marks the first major merger and acquisition (M&A) deal by a foreign company targeting one of China’s newest generation biotechs.
The acquisition will be executed as a merger, with Gracell becoming a subsidiary of AstraZeneca and continuing operations under the UK company’s umbrella. The upfront cash portion of the deal is valued at $1 billion, representing a 62% premium on Gracell’s closing price on December 22, 2023, with American depositary share (ADS) holders receiving $10 per share. AstraZeneca will pay an additional $1.50 per ADS upon the achievement of a specific regulatory milestone, which could raise the total deal value to $1.2 billion. This represents an 86% premium on Gracell’s recent closing price and a 192% premium compared to the 60-day volume-weighted average price (VWAP).
Founded in 2017 by Dr. William Cao and headquartered in Suzhou, Gracell is centered around its FasTCAR platform, enabling the rapid “next-day manufacture” of autologous CAR-T cell therapies, a significant advancement over the standard 1-2 week development process for CAR-T therapies. The company’s lead candidate, GC012F, is a BCMA/CD19-targeted autologous CAR-T therapy under development for both cancer and autoimmune diseases. Phase Ib/II clinical studies for GC012F in recurrent/refractory multiple myeloma (MM) and systemic lupus erythematosus (rSLE) are underway or set to commence imminently in both the United States and China.- Flcube.com
