BioNTech Makes Big Move to Acquire Rival CureVac
Biontech is acquiring Curevac, a fellow German pharmaceutical firm.
In a major shakeup for the German biotech industry, BioNTech, based in Mainz, announces plans to acquire CureVac, a rival company from Tübingen. The deal aims to bring further knowledge and expertise into BioNTech's portfolio as it moves towards mRNA-based cancer therapies.
The deal, worth a billion dollars, is BioNTech's second multi-billion dollar agreement in a short timeframe. Both BioNTech and CureVac were competitors in the race for a COVID-19 vaccine just two years ago, with BioNTech emerging successful while CureVac fell short.
The news sent CureVac's share price soaring by around 35% to $5.48 USD on the US technology exchange Nasdaq. Initially, BioNTech shares rose by 2.15% to $107.73 USD.
Deal Details
The Mainz-based company plans to exchange each CureVac share for BioNTech shares, with an estimated value of $5.46 USD per CureVac share. This corresponds to an evaluation of CureVac at around $1.25 billion USD (≈ €1.08 billion).
The deal is subject to regulatory approvals and is expected to be finalized by the end of 2025. Upon completion, CureVac shareholders are anticipated to hold between 4% and 6% of BioNTech. Major CureVac shareholders, holding 36.76% of the company's shares, have agreed to tender their shares under certain conditions, including biotech holding Dievini of SAP co-founder Dietmar Hopp. The German government has indicated its approval of the transaction, with Biontech assuming the KfW, which holds 13.32% of CureVac in the name of the Federal Republic of Germany, will support the acquisition.
Aim for Cancer Approval Application by End of 2025
This transaction marks another step in BioNTech's oncology strategy, according to CEO and co-founder, Ugur Sahin. This deal represents an investment in the future of cancer medicine.
BioNTech, known for its mRNA-based COVID-19 vaccine, is researching cancer immunotherapy and aims to file a first approval application in the USA by the end of 2025 for a next-generation chemotherapy against uterine cancer. This therapy utilizes antibody-drug conjugates, where drugs for chemotherapy are targeted more specifically towards cancer cells using antibodies. Another focus in BioNTech's cancer therapy strategy relies on mRNA technology, which targets the blueprints of the body's own proteins, famously used in COVID-19 vaccines, like the one developed by BioNTech and the US company Pfizer.
CureVac, which has been researching mRNA technology for years, will bring its expertise to the table with this acquisition. Although once considered alongside Biontech and others as a leading competitor in developing a vaccine against the virus, CureVac withdrew its first vaccine candidate due to relatively low efficacy, leading to patent disputes with Biontech. More recently, CureVac has been cutting jobs and focusing on research.
"This transaction is far more than just a business step for me," said CureVac CEO Alexander Zehnder. "For over two decades, both companies have pursued similar goals, often tackling challenges from different angles." By merging under one roof, the companies aim to bring their efforts together, with CureVac's research and development site in Tübingen set to remain.
Founder of CureVac, Ingmar Hoerr, welcomed the move, calling it a positive sign for Europe. With the acquisition of CureVac, along with US giant Moderna, Europe will have its own such company, according to Hoerr. He also believes that the acquisition would likely put an end to patent disputes between CureVac and Biontech, which had previously hampered progress.
Biontech's US Partnership Brings Billions In
Just prior to this announcement, Biontech announced a partnership with US company Bristol Myers Squibb. This agreement involves the development of a promising cancer drug candidate called BNT327, which aims to counteract effects that suppress the body's own immune system. The deal comes with significant payments from the US company to Biontech.
[1] Reuters News[2] BI CrunchBase[3] BioPharma Dive[4] Bloomberg[5] DW News
- The deal, worth a billion dollars, involves BioNTech exchanging each CureVac share for BioNTech shares, demonstrating the integration of technology from one company to another.
- Upon completion of the deal, CureVac shareholders are anticipated to hold a significant percentage of BioNTech, indicating the potential for future advancements in technology within the merged company.
