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AstraZeneca has struck a deal to acquire biotechnology EsoBiotec for up to $1bn, as the London-listed pharmaceutical group expands its investments in cell therapies for treating cancer.
The FTSE 100 group said on Monday that it would make an initial payment of $425mn and may pay a further $575mn if EsoBiotec meets certain development and regulatory milestones.
Susan Galbraith, executive vice-president of oncology R&D at AstraZeneca, said the deal “has the potential to transform cell therapy and will enable us to scale these innovative treatments so that many more patients around the world can access them”.
Cell therapies involve modifying the patient’s own cells to fight cancer.
The Anglo-Swedish drugmaker said the deal would not affect its financial guidance for the year.
The transaction is expected to close in the second quarter of 2025, subject to regulatory approval.
The company made an early foray into cell therapy acquisitions in China in late 2023, picking up Gracell Biotechnologies for up to $1.2bn, in a deal that provided it with a potential new treatment for multiple myeloma, a type of bone marrow cancer.
In a separate cancer therapy deal, Japan’s Taiho Pharmaceutical announced the purchase of Araris Biotech of Switzerland for up to $1.14bn. The agreement involves an upfront payment of $400mn plus a potential maximum of $740mn in additional milestone payments.
Araris is developing next-generation antibody-drug conjugates (ADCs) to target tumours. ADCs deliver payloads of anticancer drugs by attaching them to antibodies that bind to malignant cells.
Araris is a spin-off company from Switzerland’s Paul Scherrer Institute for natural and engineering sciences. Its investors include 4Bio Capital, a UK venture fund that backs advanced treatments such as cell and gene therapies.