By Colin Kellaher

American depositary share of Gracell Biotechnologies surged nearly 60% in premarket trading Tuesday after the clinical-stage biopharmaceutical company agreed to be acquired by pharmaceutical giant AstraZeneca in a deal worth up to $1.2 billion.

AstraZeneca is paying an initial $1 billion, or $10 an ADS, in cash for Gracell, a nearly 62% premium to Friday's closing price of $6.19 for the Shanghai-based company.

Gracell said its investors also will receive non-tradable contingent value rights tied to a future regulatory milestone that are worth up to $1.50 an ADS in cash, bringing the total potential deal value to $11.50 an ADS, about 86% above Friday's closing price.

Gracell ADSs were recently up 58% to $9.76 in premarket trading.

Write to Colin Kellaher at colin.kellaher@wsj.com

(END) Dow Jones Newswires

December 26, 2023 06:29 ET (11:29 GMT)

Copyright (c) 2023 Dow Jones & Company, Inc.
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