(Reuters) -Drugmaker AstraZeneca (AZN) has agreed to buy biotechnology company EsoBiotec for up to $1 billion, it said on Monday, seeking to accelerate the development of its cell therapy capabilities, particularly for cancer and autoimmune diseases.
AstraZeneca has been actively expanding its cell therapy capabilities, particularly in oncology, through internal developments as well as strategic acquisitions.
It bought China-based Gracell Biotechnologies for up to $1.2 billion in December 2023 and, in February 2024, said it would invest $300 million in the U.S. state of Maryland for the discovery and development of cell therapies.
CEO Pascal Soriot has said that new technologies, including targeted medicines directly delivering chemotherapy to cancer cells, such as antibody drug conjugates (ADC), and cell therapy, are making up a growing proportion of its new drug pipeline.
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EsoBiotec has technology that can genetically modify immune cells directly inside the body, allowing for transformative cell therapy treatments in just minutes instead of the current process which can take weeks, AstraZeneca said.
AstraZeneca will buy all outstanding equity in EsoBiotec on a cash and debt-free basis, including an initial payment of $425 million on closing of the deal, and up to $575 million in contingent considerations, based on development and regulatory milestones.
The transaction is expected to close in the second quarter of 2025, and does not affect AstraZeneca’s financial guidance for this year, the company said.
(Reporting by Chandini Monnappa in Bengaluru; Editing by Mrigank Dhaniwala and Rachna Uppal)
