Astrazeneca announces groundbreaking billion dollar deal with Esobiotec

AstraZeneca, one of the world’s leading pharmaceutical companies, has announced a transformative acquisition of the Belgium-based biotech firm Esobiotec in a deal worth up to $1 billion. This strategic move sees AstraZeneca continue to bolster its position in the field of oncology and innovative cell therapy technologies under the leadership of CEO Sir Pascal Soriot.

The initial payment of $425 million will be made upon closing the deal, expected to occur in the second quarter of this year. The remaining $575 million is contingent upon achieving key development and regulatory milestones. Esobiotec will operate as a subsidiary of AstraZeneca, retaining its base of operations in Belgium. The acquisition further strengthens AstraZeneca’s pipeline, particularly focusing on therapies involving immune system modulation for cancer treatment.

Esobiotec has developed pioneering lentiviral technology that programmes specific immune cells, such as T cells, directly within the patient’s body, enabling them to identify and destroy tumour cells. This in vivo approach represents a significant departure from traditional cell therapy practices that include extracting, genetically modifying, and reinfusing cells, a process that can take weeks. By reducing manufacturing timelines and complexity, Esobiotec’s platform has the potential to improve the cost-efficiency of cell therapy and expand its accessibility to patients worldwide.

Speaking on the acquisition, Susan Galbraith, AstraZeneca’s executive vice-president of oncology haematology research and development, described Esobiotec’s platform as having the potential to revolutionise cell therapy. She emphasised that this technology aligns with the company’s goal of harnessing the full potential of cell-based approaches to tackle cancers and improve outcomes globally.

This acquisition follows AstraZeneca’s 2023 purchase of Gracell, a Chinese company known for its CAR-T drug candidate targeting multiple myeloma and other haematological cancers. By integrating Esobiotec into its operations, AstraZeneca takes another significant step towards dominating the next generation of immunotherapy solutions in the medical field.

Currently valued at £184 billion on the London Stock Exchange, AstraZeneca’s shares traded down 1 per cent at £118.72 following the announcement. However, the stock remains up 15 per cent over the past year, highlighting the company’s robust performance. With this acquisition, AstraZeneca strengthens its reputation as a dominant force in cancer therapeutics and cell therapy innovations.