Nastassia Samal
AstraZeneca (NASDAQ:AZN) introduced on Tuesday that it has entered right into a definitive settlement to amass China-based Gracell Biotechnologies (NASDAQ:GRCL) for as much as $1.2 billion, as a part of the previous’s efforts to develop its cell therapies enterprise.
Per the phrases, the British-Swedish firm will purchase the totally diluted share capital of Gracell by means of a merger, with every share valued at $2.00. Moreover, the deal consists of an unchangeable contingent worth proper of as much as $0.30 per share in money, which can be paid upon the achievement of particular regulatory and gross sales milestones.
The upfront money portion of the deal is $1.0 billion, a 62.0% premium to Gracell’s final closing worth for its American depository shares of $6.19, AstraZeneca mentioned in a press release Tuesday. Additional, with the potential for added contingent worth funds, the entire price of the deal might attain $1.2 billion.
It’ll additionally purchase the money, money equivalents and short-term investments on Gracell’s stability sheet, which totaled $234.1 million as of the top of September.
This strategic acquisition not solely strengthens AstraZeneca’s monetary place, but in addition expands its portfolio of cell therapies, offering potential remedies for most cancers and autoimmune problems.
Pursuant to the deal, Gracell (GRCL) will function as a completely owned subsidiary of AstraZeneca (AZN), with operations in China and the U.S, with out impacting AstraZeneca’s monetary steering for 2023, the businesses mentioned.
The transaction is predicted to shut within the first quarter of 2024.
Shares of Gracell Biotechnologies (GRCL) had been up greater than 65% Tuesday in early buying and selling.