AstraZeneca said on Tuesday it will buy China-based Gracell Biotechnologies for up to USD 1.2 billion as the British pharma company furthers its cell therapy ambitions.

The cash deal aimed at bolstering AstraZeneca's portfolio values U.S.-listed Gracell at USD 2 per ordinary share or USD 10 per ADS of Gracell, plus a non-tradable contingent value right of USD 0.30 per ordinary share, if certain regulatory milestones are met.

"The proposed acquisition of Gracell will complement AstraZeneca's existing capabilities and previous investments in cell therapy, where we have established our presence in CAR-T and T-cell receptor therapies in solid tumours", AstraZeneca's Oncology R&D Vice President Susan Galbraith said in a statement.

Autologous CAR-T is a cell therapy created by reprogramming a patient's immune T-cells, a key part of the body's immune response, to target disease-causing cells. Gracell's FasTCAR platform enhances T-cell fitness and could potentially improve the effectiveness of treatment in patients.

Gracell will operate as a wholly owned subsidiary of the London-listed company with operations in China and the US, without impacting AstraZeneca's financial guidance for 2023, the companies said.