The proposed acquisition of China-based Gracell Biotechnologies Inc. (Nasdaq: GRCL) by UK pharmaceuticals giant AstraZeneca (AZ, NASDAQ: AZN) has received approval from Gracell’s shareholders during an extraordinary general meeting held on February 19, 2024. An overwhelming 99.9% of shareholders voted in favor of AstraZeneca’s $1 billion acquisition, with potential total valuation rising to $1.2 billion, as initially announced in December 2023. The transaction is expected to close on February 22.
The acquisition will be structured as a merger, with Gracell becoming a subsidiary while continuing to operate under AstraZeneca’s banner. The upfront cash component of the deal is set at $1 billion, representing a 62% premium on Gracell’s closing share price as of December 22, 2023, with American depositary share (ADS) holders to receive $10 per share. Additionally, AstraZeneca will provide $1.50 per ADS contingent on the achievement of a specific regulatory milestone, bringing the total potential value of the deal to $1.2 billion.
Founded in Suzhou in 2017 by Dr. William Cao, Gracell is centered around its innovative FasTCAR platform, which enables the next-day manufacture of autologous CAR-T cell therapies, significantly faster than the standard 1-2 week development timeline. The firm’s leading candidate, GC012F, targets BCMA and CD19 and is under development for both cancer and autoimmune diseases. Phase Ib/II clinical trials are already underway or set to commence imminently in the U.S. and China for GC012F in recurrent/refractory multiple myeloma (MM) and systemic lupus erythematosus (rSLE).- Flcube.com
