AstraZeneca expands with $1bn EsoBiotec acquisition

In a significant move to bolster its cell therapy capabilities, AstraZeneca PLC (LON:AZN) (market capitalization: $238.14 billion) has announced the acquisition of biotechnology firm EsoBiotec for up to $1 billion. The transaction, expected to close in the second quarter of 2025, will see EsoBiotec become a wholly owned subsidiary of the pharmaceutical giant, operating out of Belgium. According to InvestingPro data, AstraZeneca (NASDAQ:AZN) maintains a "GREAT" financial health score, with an impressive gross profit margin of 82.18% and a 33-year track record of consistent dividend payments.

The acquisition includes EsoBiotec’s Engineered NanoBody Lentiviral (ENaBL) platform, which is touted to revolutionize cell therapy with its in vivo delivery system. This novel approach allows for cell therapies to be administered through a simple intravenous injection, a process that is significantly quicker than traditional methods requiring weeks for cell modification outside the patient’s body.

Susan Galbraith, Executive Vice President of Oncology Haematology R&D at AstraZeneca, expressed enthusiasm for the deal, stating that it could transform cell therapy, making these treatments more widely available. She emphasized the potential to scale these treatments globally.

Jean-Pierre Latere, CEO of EsoBiotec, also commented on the merger, highlighting the opportunity to bring cost-effective cell therapies to more patients worldwide through the combined expertise and resources of both companies.

The financial terms of the agreement include an initial payment of $425 million upon closing, with the possibility of an additional $575 million based on the achievement of certain development and regulatory milestones. AstraZeneca has clarified that this acquisition will not affect its financial guidance for 2025. With annual revenue of $54.07 billion and operating with moderate debt levels, the company appears well-positioned to handle this acquisition. InvestingPro analysis suggests the stock may be undervalued at current levels, with 12 additional ProTips available for subscribers.

EsoBiotec’s ENaBL platform is expected to address many challenges associated with traditional cell therapies, such as complexity and prolonged manufacturing timelines, thus expanding patient access. The technology is designed to program immune cells like T cells within the patient’s body to recognize and eliminate cancer or autoreactive cells.

AstraZeneca’s ambition in cell therapy is to harness the immune system for cancer treatment and to reset immune-mediated diseases. The acquisition of EsoBiotec is poised to accelerate the company’s efforts in this innovative field, contributing to AstraZeneca’s vision of redefining cancer care and eventually eradicating cancer as a cause of death. For detailed analysis of AstraZeneca’s growth potential and comprehensive financial metrics, access the full Pro Research Report, available exclusively on InvestingPro, along with expert insights and advanced screening tools for over 1,400 US stocks.

This news is based on a press release statement from AstraZeneca.

In other recent news, AstraZeneca PLC has reported positive outcomes from its MATTERHORN Phase III trial, which examined the use of Imfinzi in combination with standard-of-care chemotherapy for treating early-stage gastric and gastroesophageal junction cancers. The trial demonstrated a statistically significant improvement in event-free survival for patients receiving the Imfinzi-based regimen. Additionally, AstraZeneca has announced that its 2025 Annual General Meeting will be held on April 11, with an agenda that includes routine corporate matters and shareholder voting on various proposals.

In other developments, AstraZeneca’s CEO Pascal Soriot acquired 89,962 ordinary shares following the vesting of a performance-based award. The shares were part of the AstraZeneca Performance Share Plan, which saw 97% of the shares vest. Furthermore, top executives, including Soriot and CFO Aradhana Sarin, acquired shares after the vesting of a deferred bonus plan, with Soriot obtaining 17,605 shares and Sarin receiving 2,049 shares. These transactions were conducted outside a trading venue and are in compliance with the EU Market Abuse Regulation.

The company remains focused on innovative medicine, with its products reaching patients in over 125 countries.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.