AstraZeneca Acquires Chinese Cancer Therapy Firm Gracell for $1.2 Billion

AstraZeneca has acquired the Chinese cancer therapy company Gracell Biotechnologies for $1.2 billion, emphasizing China's significance to the pharmaceutical company's expansion.

The purchase of Gracell, a specialist in CAR-T cell therapy, aligns with AstraZeneca's growth in oncology, which represents a third of its business.

With revenues of $6 billion from China last year, AstraZeneca sees the country as its second-biggest market after the US. Amidst geopolitical tensions, AstraZeneca once considered spinning off its China business.

Now, the collaboration with Gracell follows a recent partnership with another Chinese biotech, Eccogene, to develop a weight-loss drug.

AstraZeneca paid $2 per Gracell share, a 62% premium, and will integrate the company as a wholly-owned subsidiary, maintaining operations in China and the US. The deal's full value is contingent upon reaching certain milestones.

AstraZeneca, known for its Covid vaccine developed with Oxford University, continues to bolster its portfolio, recently purchasing Seattle-based Icosavax for $1.1 billion. The Gracell acquisition is poised to enhance AstraZeneca's cell therapy capabilities and explore treatments for autoimmune diseases.