AstraZeneca has announced the acquisition of Gracell Biotechnologies for an upfront cash consideration of $1bn (£792m).

Gracell is a clinical-stage biopharmaceutical company developing cell therapies for the treatment of cancer and autoimmune diseases.

Under the terms of the agreement, AstraZeneca has acquired all of Gracell’s fully diluted share capital for a price of $2.00 per ordinary share in cash, as well as a non-tradable contingent value right of $0.30 per ordinary share in cash payable upon the achievement of a “specified regulatory milestone”.

If these potential contingent value payments are achieved, then combined with the upfront cash portion AstraZeneca stated that the total transaction value will be approximately $1.2bn (£950m).

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

---