China's Gracell leaps on news of an up to $1.2 billion M&A deal

In a bid to further its cell therapy ambitions, UK pharma major AstraZeneca (LSE: AZN) has entered into a definitive agreement to acquire China’s clinical-stage biotech Gracell Biotechnologies (Nasdaq: GRCL), with the news sending the latter’s US-trading shares soaring 61% to $9.96.

Gracell is developing innovative cell therapies for the treatment of cancer and autoimmune diseases, and the buy marks the third M&A deal for AstraZeneca this year.

AstraZeneca says that the proposed acquisition will enrich its growing pipeline of cell therapies with GC012F, a novel, clinical-stage FasTCAR-enabled BCMA and CD19 dual-targeting autologous chimeric antigen receptor T-cell (CAR-T) therapy, a potential new treatment for multiple myeloma, as well as other hematologic malignancies and autoimmune diseases including systemic lupus erythematosus (SLE).