Dec 26 Reuters AstraZeneca said on Tuesday it will buy Gracell Biotechnologies for up to 1.2 billion as the AngloSwedish pharma company furthers its cell therapy ambitions and boosts its presence in China, the world39;s secondlargest pharmaceuticals market.

The cash deal, which adds several experimental therapies to AstraZeneca39;s portfolio, values Gracell at 2 per ordinary share, or 10 per ADS of Gracell, plus a nontradable contingent value right of 0.30 per ordinary share, if certain regulatory milestones are met.

Shares of Chinabased Gracell surged 65 in premarket trading in the United States. AstraZeneca is one of the biggest drugmakers in the Asian country, which accounted for 13 of the company39;s total sales in 2022.

The proposed acquisition of Gracell will complement AstraZeneca39;s existing capabilities and previous investments in cell therapy, where we have established our presence in CART and Tcell receptor therapies in solid tumours, AstraZeneca39;s Oncology RD Vice President Susan Galbraith said in a statement.

Autologous CART is a cell therapy created by reprogramming a patient39;s immune Tcells, a key part of the body39;s immune response, to target diseasecausing cells. Gracell39;s FasTCAR platform enhances Tcell fitness and could potentially improve the effectiveness of treatment in patients.

AstraZeneca will also acquire Gracell39;s cash, cash equivalents and shortterm investments of 234.1 million as of Sept. 30, 2023. The deal is expected to…