(Reuters) -Drugmaker AstraZeneca 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,
AstraZeneca's $1 Billion Acquisition to Enhance Cancer Therapies
By Chandini Monnappa
(Reuters) -Drugmaker AstraZeneca has agreed to buy Belgium-based biotechnology firm EsoBiotec for up to $1 billion, it said on Monday, seeking to accelerate the development of its cell therapy capabilities, particularly for cancer.
EsoBiotec's technology 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.
"We are in the early stages in terms of clinical development, so our immediate plans will be to scale up the discovery efforts," Susan Galbraith, AstraZeneca's executive vice president for oncology R&D, told reporters on a call.
Traditional cell therapies involve genetically modifying cells extracted from a patient, before re-introducing them into the body as medicine, often a lengthy process.
AstraZeneca has been actively advancing its cell therapy capabilities, particularly in oncology, and has expanded its global operations in recent years.
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 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.
Shares in AstraZeneca, which is among the top five European pharmaceutical companies by market capitalisation, were trading 1.7% lower at 1130 GMT. Shares were up almost 15% year to date at Friday's market close.
As part of the deal announced on Monday, AstraZeneca will pay $425 million up front and spend up to $575 million in contingent payments based on milestones.
The transaction is expected to close in the second quarter of 2025, making EsoBiotec a wholly-owned subsidiary of AstraZeneca with operations in Belgium.
Separately, AstraZeneca said it had secured exclusive global rights to biotech firm Alteogen's ALT-B4 enzyme for developing subcutaneous cancer treatments. It did not disclose financial terms.
(Reporting by Chandini Monnappa in Bengaluru; Editing by Mrigank Dhaniwala and Rachna Uppal)
