AstraZeneca, a UK based drugs giant, has said that it is planning to acquire US biotech company Amplimmune in a deal valued at $500 million.

Amplimmune focuses on developing treatments developed for helping the immune system fight cancer. The acquisition will allow AstraZeneca to access a number of compounds in pre-clinical development. The acquisition is not expected to yield commercially viable new medicines for several years to come, but it is in-line with the company's strategy to build up its capability in oncology.

The MedImmune biotech unit of AstraZeneca will acquire 100 per cent of shares of Amplimmune for an initial $225 million and a further payment of up to $275 million depending upon the company reaching predetermined development milestones.

Bahija Jallal, executive vice president of MedImmune said, "It will allow us to strengthen our arsenal of potential cancer therapies."

AstraZeneca is developing other cancer therapies in clinical development and the move to acquire the company shows that it is aiming to compete with companies such as Roche and Merck in the area of cancer research through pre-clinical medicines.