AstraZeneca to Buy Chinese Cancer Drug Developer for Up to $1.2 Billion

(Bloomberg) — AstraZeneca Plc agreed to acquire Chinese cell therapy developer Gracell Biotechnologies Inc. for as much as $1.2 billion as the British drug giant bolsters its bets on medical innovation in the world’s second-biggest economy.

Under the agreement, Astra will acquire Shanghai-based Gracell for $2 a share, amounting to an upfront cash payment of $1 billion. An additional share-purchase contingent on reaching certain regulatory milestones would eventually push the deal value to $1.2 billion, the companies said in a statement Tuesday.