Join 34,000+ Traders & Investors by getting our FREE weekly Sunday Cheat Sheet email. Get key market news and events before everyone else. Click Here to See if you Qualify.
AstraZeneca has announced it will acquire China’s Gracell Biotechnologies for $1.2 billion. The strategic move to bolster its cell therapy portfolio and strengthen its foothold in the Chinese pharmaceutical market.
Gracell Biotechnologies, headquartered in China, specializes in innovative therapies, notably its CAR-T cell therapy. This revolutionary treatment involves extracting T-cells from patients, re-engineering them to target cancer, and reintroducing them into the patient’s body. The acquisition not only propels AstraZeneca into the forefront of cell therapy but also diversifies its experimental therapies pipeline.
The cash deal, valued at $2 per ordinary share or $10 per American Depository Share of Gracell, represents a significant premium of 61.6% from Gracell’s last closing on December 22. The deal also includes a non-tradable contingent value right of $0.30 per ordinary share, contingent upon the achievement of specific regulatory milestones.
Shareholders of Gracell witnessed a surge of 60% in premarket trading in the United States following the announcement. Emily Bodnar, an analyst at H.C. Wainwright, suggested that this strategic move may signify AstraZeneca’s deliberate foray into the burgeoning field of cell therapy, an area where it has been less involved compared to industry peers such as Novartis and Gilead.
In addition to the acquisition, AstraZeneca will inherit Gracell’s cash, cash equivalents, and short-term investments, amounting to $234.1 million as of September 30, 2023.
The transaction is slated for completion in the first quarter of 2024, subject to regulatory approvals. AstraZeneca, one of the leading pharmaceutical companies in China, has been actively pursuing opportunities in the region.
This acquisition follows recent agreements, including a licensing deal for an experimental anti-obesity pill from China’s Eccogene and a contract manufacturing deal with CanSino Biologics for its messenger RNA technology vaccine program.
This move underscores AstraZeneca’s commitment to innovation and its strategic expansion in key markets. CEO Pascal Soriot, earlier this year, highlighted the company’s focus on collaboration with Chinese entities, as evidenced by the three licensing deals with Chinese companies.
The acquisition of Gracell Biotechnologies positions AstraZeneca at the forefront of transformative therapies and aligns with its mission to address unmet medical needs through cutting-edge research and development.
This Options Discord Chat is The Real Deal
While the internet is scoured with trading chat rooms, many of which even charge upwards of thousands of dollars to join, this smaller options trading discord chatroom is the real deal and actually providing valuable trade setups, education, and community without the noise and spam of the larger more expensive rooms. With a incredibly low-cost monthly fee, Options Trading Club (click here to see their reviews) requires an application to join ensuring that every member is dedicated and serious about taking their trading to the next level. If you are looking for a change in your trading strategies, then click here to apply for a membership.