AstraZeneca agrees to acquire TeneoTwo

Drugmaker AstraZeneca has agreed to acquire TeneoTwo and its clinical-stage T-cell engager in a deal worth up to $1.26bn as part of an effort to accelerate the development of the potential new medicine for B-cell haematologic malignancies.

AstraZeneca will pay $100.0m for TeneoTwo and its TNB-486 T-cell engager, while additional contingent research and development-related milestone payments of up to $805.0m and further commercial-related milestone payments of up to $360.0m will also be due to TeneoTwo's equity holders.

The FTSE 100-listed group stated the transaction will be accounted for as an "intangible asset acquisition" and highlighted that the acquisition was expected to close in the third quarter, subject to customary closing conditions and regulatory clearances.

AZN also noted that the transaction did not impact its financial guidance for 2022.

Reporting by Iain Gilbert at Sharecast.com