By P.R. Venkat

AstraZeneca has agreed to buy Gracell Biotechnologies for a transaction value of $1.2 billion, as part of the former's efforts to grow its cell therapies business.

The upfront cash portion of the deal is $1.0 billion, a 62.0% premium to Gracell's last closing price for its American depository shares of $6.19, AstraZeneca said in a statement Tuesday.

The deal's total value would reach $1.2 billion when combined with potential contingent value payments.

The acquisition will help grow AstraZeneca's pipeline of cell therapies for potential treatment of cancer and autoimmune diseases.

The transaction is expected to close in the first quarter of next year, AstraZeneca said. It will also acquire the cash, cash equivalents and short-term investments on Gracell's balance sheet, which totaled $234.1 million as of the end of September.

Following the deal, Gracell will operate as a wholly owned subsidiary of AstraZeneca, with operations in China and the U.S.

Write to P.R. Venkat at venkat.pr@wsj.com

(END) Dow Jones Newswires

December 26, 2023 02:50 ET (07:50 GMT)

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