Gracell Biotechnologies : 2021 Wells Fargo Healthcare Conference Presentation

Gracell Biotechnologies

Pioneering the Next Generation of CAR-T Cell Therapies

Corporate Presentation | SEPTEMBER 2021

GRCL (NASDAQ) I gracellbio.com

Disclaimer

This presentation has been prepared by Gracell Biotechnologies Inc. (the "Company") solely for information purpose and has not been independently verified. By viewing or accessing the information contained in this presentation, the recipient hereby acknowledges and agrees that no representations, warranties or undertakings, express or implied, are made by the Company or any of its directors, shareholders, employees, agents, affiliates, advisors or representatives as to, and no reliance should be placed upon, the accuracy, fairness, completeness or correctness of the information or opinions presented or contained in this presentation. None of the Company or any of its directors, shareholders, employees, agents, affiliates, advisors or representatives accept any responsibility whatsoever (in negligence or otherwise) for any loss howsoever arising from any information presented or contained in this presentation or otherwise arising in connection with the presentation. The information presented or contained in this presentation speaks as of the date of this presentation and is subject to change without notice.

Certain statements in this presentation, and other statements that the Company may make, are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the "Securities Act"), Section 21E of the Securities Exchange Act of 1934, as amended., or the Private Securities Litigation Reform Act of 1995. These statements reflect the Company's intent, beliefs or current expectations about the future. These statements can be recognized by the use of words such as "expects," "plans," "will," "estimates," "projects," "intends," "anticipates," "believes," "confident" or words of similar meaning. These forward-looking statements are not guarantees of future performance and are based on a number of assumptions about the Company's operations and other factors, many of which are beyond the Company's control, and accordingly, actual results may differ materially from these forward-looking statements. The Company or any of its affiliates, advisers or representatives has no obligation and does not undertake to revise forward-looking statements to reflect future events or circumstances.

This presentation shall not constitute an offer to sell or the solicitation of an offer to buy any securities in any jurisdiction nor shall there be any sale of securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction. No securities of the Company may be sold in the United States without registration with the United States Securities and Exchange Commission (the "SEC") or an exemption from such registration pursuant to the Securities Act and the rules and regulations thereunder. No part of this presentation shall form the basis of or be relied upon in connection with any contract or commitment whatsoever. Specifically, these materials do not constitute a "prospectus" within the meaning of the Securities Act. This presentation does not contain all relevant information relating to the Company or its securities, particularly with respect to the risks and special considerations involved with an investment in the securities of the Company and is qualified in its entirety by reference to those risks more fully discussed in the section titled "Risk Factors" in the Company's most recent annual report on Form 20F, as well as discussions of potential risks, uncertainties, and other important factors in the Company's subsequent filings with the SEC.

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Gracell At A Glance

We are a global clinical-stage biopharmaceutical company dedicated to discovering and developing breakthrough cell therapies to address major industry challenges and fulfill unmet medical needs in the treatment of cancer. We aim to disrupt conventional approaches to CAR-T cell therapies with our proprietary technology platforms-FasTCAR and TruUCAR.

Key Financial Highlights

Cash & short term investments	$318 M (as of 6/30/21)
ADS Outstanding (as converted*)	~67.3 M (as of 6/30/21)
Net proceeds from IPO	$220 M

Key Company Highlights

Nasdaq	GRCL
History	Founded In 2017
Headquarter	China
Operations	China and US

• Each of our ADS represents five ordinary shares. In addition to the issued and outstanding ordinary shares, as of June 30, 2021,
  11,707,435 options were granted and 10,946,710 options were outstanding, and 303,030 restricted share units ("RSUs") were granted under

our employee stock option plan.	3

Proprietary Technology Platforms and Enhancements

Technology platforms to improve treatment outcomes & overcome industry commercial bottlenecks

Autologous CAR-T Platform

• Next-daymanufacturing
• Younger T-cells with enhanced fitness
• Fully-closedmanufacturing capabilities

Allogeneic CAR-T Platform

• Off-the-shelfavailability
• Novel design to eliminate HvG without need of extra immunosuppressive therapeutics

Proprietary

technology toolkit to enhance platforms

Dual CAR

• Deep expertise in protein chemistry
• True dual-antigen targeting
• Leverage a second CAR to reduce rejection

Enhanced CAR

• To overcome immunosuppressive tumor microenvironment
• To regulate cytokine signaling

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Global Clinical Development Pipeline

				Phase of Development		Milestones / Anticipated
	Program	Indication
					Milestones
			Preclinical	Phase 1	Phase 2	Phase 3
	GC012F	RR MM	China IIT Ongoing*				U.S. IND filing: 1H 2022**
	BCMA/CD19				China IND filing: 1H 2022
	GC019F		China IIT Completed*
FasTCAR	Adult B-ALL					China IND approved
CD19
		China IND Approved
	Dual-target
	Product	B-NHL
	Candidates
TruUCAR	GC027	Adult T-ALL	China IIT* Ongoing				U.S. IND filing: 2022**
CD7	Other				China IND filing: 2022
Donor-	GC007g		China IIT * Completed			China IND approved - seamless
B-ALL
derived CAR	CD19					Phase 1/2 registrational study
	China IND Phase 1/2 Study
			Ongoing

• IIT (investigator-initiated trial) is optional not mandatory, and it serves as early evidence for safety and potentially efficacy for the individual programs. IND studies will build on IIT results.
• We intend to use the clinical data generated from China IITs in our IND filings to the FDA and the NMPA; however, we make no guarantee that such data will be accepted by the FDA and/or the NMPA.

RR MM, relapsed or refractory multiple myeloma; B-ALL, B cell acute lymphoblastic leukemia; B-NHL, B cell non-Hodgkin's lymphoma; T-ALL, T cell acute lymphoblastic leukemia

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