Breaking News: BioNTech's Taking Over CureVac - A Game-Changer in the Pharmaceutical Landscape
BioNTech Escalates Competition with CureVac in German Pharmaceutical Sector as it aggressively positions for ownership - Biontech is set to acquire Curevac, another German pharmaceutical company.
German heavyweight, BioNTech, is making moves on its domestic rival CureVac, with plans to acquire the Tübingen-based biotech firm. BioNTech announced on Thursday their intentions to snap up CureVac, aiming to intensify their expertise in mRNA-based cancer treatments.
Valued at a whopping billion, this acquisition marks the second major deal for BioNTech in a quick succession. Both companies were neck and neck in the race to develop a COVID-19 vaccine in 2020, with BioNTech emerging victorious while CureVac missed the mark.
CureVac's stock skyrocketed at the opening bell on the US technology exchange Nasdaq, surging by nearly 35% to $5.48, and BioNTech shares saw an initial 2.15% boost to $107.73.
Proposed Transaction to Wrap Up by Year-End 2025
BioNTech intends to exchange each CureVac share for BioNTech American Depositary Shares (ADS), setting the exchange rate at around $5.46 per CureVac share, giving CureVac a valuation of approximately $1.25 billion (€1.08 billion). The takeover is projected to be completed by the end of 2025, subject to regulatory approvals. Upon completion, CureVac shareholders are expected to hold between 4 and 6% of BioNTech.
Significant shareholders who together hold 36.76% of CureVac shares, including dievini Hopp Biotech Holding GmbH & Co. KG, have agreed to tender their shares subject to certain conditions. The German government has declared its general support for the deal, leading BioNTech to anticipate backing from KfW, which represents the Federal Republic of Germany's 13.32% ownership of CureVac.
BioNTech Aiming for First Cancer Approval Application by Year-End 2025
With these agreements, BioNTech would secure 50.08% of CureVac shares. The acquisition offer is contingent upon achieving a minimum acceptance threshold of 80%. The remaining shareholders who don't initially tender their shares can expect the same consideration per share in a subsequent restructuring.
"This transaction is another piece of the puzzle in BioNTech's oncology strategy and an investment in the future of cancer medicine," said Ugur Sahin, BioNTech's CEO and co-founder.
Rich in mRNA-based cancer immunotherapies, owing to their successful COVID-19 vaccine, BioNTech hopes to submit their first US approval application for a next-generation chemotherapy against ovarian cancer by the end of 2025. Their cancer therapies also encompass antibody-drug conjugates and mRNA technology, which targets the blueprints of the body's own proteins.
CureVac's Tübingen research site is expected to remain operational.
CureVac, a pioneer in mRNA technology, faced controversy following its withdrawal of its first COVID-19 vaccine candidate due to low efficacy, resulting in legal disputes with BioNTech. Recently, the company reduced its workforce and re-focused on research.
"This transaction transcends business boundaries for me," said CureVac's CEO, Alexander Zehnder. "Both companies have shared common objectives for over two decades, tackling challenges from diverse angles." Under this union, they will now unite under one roof. The Tübingen research site will continue its operations.
CureVac founder, Ingmar Hoerr, voiced his approval of the acquisition, expressing it as a positive sign for Europe. It will create a European counterpart to the US titan, Moderna, according to Hoerr, who had stepped down from his post at CureVac in the spring of 2020. The acquisition will also put an end to the patent disputes between CureVac and BioNTech, which had gone as far as the Federal Patent Court.
BioNTech's Deal with US Company Bringing in Billions
Shortly after announcing this acquisition, BioNTech revealed a cooperation with US pharma giant, Bristol Myers Squibb. This partnership involves developing a promising cancer drug candidate, BNT327, which aims to combat tumor effects that suppress the body's own immune system. This collaboration comes with significant payments from the US company to BioNTech.
- Biontech
- CureVac
- Tübingen
- Acquisition
- Mainz
- Coronavirus
- US Dollar
- Pharmaceutical company
- CEO
- USA
- Nasdaq
- Transaction
- The proposed acquisition of CureVac by BioNTech, initially announced by BioNTech on Thursday, aims to intensify BioNTech's expertise in mRNA-based cancer treatments, particularly in the development of a next-generation chemotherapy against ovarian cancer.
- Despite the acquisition, CureVac's research site in Tübingen is expected to continue its operations, reflecting a shared objective between the two companies to tackle challenges from diverse angles in the field of pharmaceuticals and technology.
