AstraZeneca has acquired Gracell Biotechnologies for £950m, in a move to expand its footprint in the cancer research market.

The Anglo-Swedish pharmaceutical firm has marked a further investment in cancer research and treatment, which accounts for around one-third of its business, as well as its continued push into markets in China.

Gracell Biotechnologies focuses on a type of cancer therapy known as CAR-T, which modifies a patient’s cells to fight the disease.

The acquisition is AstraZeneca’s second tie-up with a Chinese firm in two months, after it struck a deal with biotech firm, Eccogene, to develop a weight-loss pill in November.

The Guardian has reported that AstraZeneca paid $2 (£1.58) per share for Gracell, which was a 62% premium on its closing price, with the deal potentially increasing to as much as $1.2bn if certain milestones are hit.

As a result of the deal, Gracell will operate as a wholly owned subsidiary of AstraZeneca, with operations in China and the US.

Founder, chairman and chief executive officer at Gracell, Dr William Cao, said: “We look forward to working with AstraZeneca to accelerate our shared goal of bringing transformative cell therapies to more patients living with debilitating diseases.

“By combining our expertise and resources, we can unlock new ways to harness the Gracell FasTCAR manufacturing platform, which we believe has the potential to optimise the therapeutic profile of engineered T cells, to pioneer the next generation of autologous cell therapies.”

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