AstraZeneca Unveils $1.27B Purchase of U.S. Biotech Firm TeneoTwo

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AstraZeneca Unveils $1.27B Purchase of U.S. Biotech Firm TeneoTwo

By Scott Kanowsky -- AstraZeneca (NASDAQ: AZN ) has announced that it plans to acquire U.S. oncology firm TeneoTwo in a deal worth up to $1.27B, as the British-based pharmaceutical company looks to expand its cancer treatment pipeline.

In a statement, AstraZeneca said the purchase will be focused on a molecule made by TeneoTwo that is designed to encourage the body's immune system to target and kill cancer cells. AstraZeneca aims to develop this into a potential new medicine for patients suffering from blood cancers like non-Hodgkin lymphoma.

"We believe this innovative molecule, which was designed to optimise the therapeutic window of T-cell activation, will enable us to explore novel combinations that have the potential to become new standards of care in this setting,” said Anas Younes, Senior Vice President Hematology R&D at AstraZeneca.

The deal will see AstraZeneca acquire all outstanding equity of TeneoTwo in exchange for an upfront payment of $100M. The company will then make additional payments of $805M and $360M based on the progress of the molecule's development.

The transaction, which still needs regulatory approval, is expected to close in the third quarter of this year. AstraZeneca added that it does expect the acquisition to impact its 2022 guidance.

London-listed shares in AstraZeneca (LON: AZN ) were slightly higher in late morning trading, following the announcement.

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