AstraZeneca, a British drugmaker, had announced on Tuesday that it had acquired biotech company Spirogen. AstraZeneca's MedImmune unit would be purchasing the biotech company on its behalf in a USD440 million deal.

The British drugmaker would be paying an upfront amount of USD200 million. AstraZeneca said it would be paying up to USD240 million more should Spirogen would meet the drugmaker's development goals. Part of the acquisition deal would also have AstraZeneca acquire an equity investment in ADC Therapeutics for USD20 million. ADC Therapeutics currently has a licensing agreement with Spirogen.

The acquisition of the privately-held Spirogen would be strategic for AstraZeneca as the latter intended to expand in the oncology business. Spirogen had antibody-drug conjugate technology that would specifically target cancer cells without harming healthy cells, AstraZeneca had said in its statement.