Gracell Biotechnologies Inc. (NASDAQ: GRCL) stock is surging in the US stock market session. Gracell stock is witnessing a notable uptick of 60.02% to reach a trading value of $9.90 asof the last check during the current session. This surge is attributed to a successful acquisition initiative.
Gracell (GRCL) today declared its entry into a definitive acquisition deal with AstraZeneca. The planned acquisition expands AstraZeneca’s portfolio of cell therapies, particularly highlighting GC012F, a dual-targeting autologous chimeric antigen receptor T (CAR-T) cell therapy aimed at BCMA and CD19. It exhibits promise as an innovative treatment for various conditions, including multiple myeloma and hematologic malignancies, as well as autoimmune diseases like systemic lupus erythematosus (SLE).
Through the collaboration of their collective expertise and resources, they have the opportunity to discover innovative approaches in utilizing the Gracell’s FasTCAR manufacturing platform. This platform is seen as having the potential to enhance the therapeutic characteristics of engineered T cells, leading the way in advancing the next era of autologous cell therapies.
Under the terms of the agreement, AstraZeneca will merge with Gracell, acquiring its fully diluted share capital for a cash payment of $2.00 per ordinary share at the closing. The deal also incorporates a non-tradable contingent value right, amounting to $0.30 per ordinary share in cash, payable upon reaching a specified regulatory milestone.
The initial cash segment of the overall consideration is approximately $1.0 billion, marking a substantial 62% premium over Gracell’s market value on December 22, 2023, and a noteworthy 154% premium over the 60-day volume-weighted average price (VWAP) of $3.94 per ADS before the official announcement.
As part of the potential agreement, AstraZeneca will assimilate Gracell’s remaining cash, cash equivalents, and short-term investments, totaling $234.1 million as of September 30, 2023. The acquisition is anticipated to conclude in the first quarter of 2024, contingent on standard closing conditions, including regulatory approvals and Gracell shareholder consent. Upon completion, Gracell will transition into private ownership, and its American Depositary Shares (ADSs) will cease to be listed on Nasdaq.
