Deal Overview
German biotech firm BioNTech has announced the acquisition of its rival CureVac for approximately $1.25 billion in BioNTech shares. This move aims to enhance BioNTech’s capabilities in developing new mRNA-based cancer treatments. CureVac shareholders will receive a 55% premium over the three-month average share price, resulting in a 4%-6% stake in BioNTech following the transaction.
Market Reactions
CureVac’s shares surged by 27%, reaching a five-month high and valuing the company at €1.04 billion ($1.2 billion). In contrast, BioNTech’s shares fell by 2% by mid-day trading. The deal marks a significant step for BioNTech, reinforcing its focus on cancer immunotherapy after its success with Pfizer’s COVID-19 vaccine partnership.
Strengthening mRNA-Based Cancer Research
The acquisition underscores BioNTech’s ongoing efforts to advance mRNA technology beyond COVID-19 vaccines, aiming to develop and commercialize mRNA-based cancer treatments. BioNTech plans to bolster its research, development, and manufacturing capabilities in the oncology field, using CureVac’s technology to support these objectives.
Shifting Focus for CureVac
CureVac, which has recently shifted its focus to oncology, had sold its influenza and COVID-19 vaccine development rights to GSK last year. The company had also previously faced setbacks, including job cuts, after failing to develop a successful mRNA-based COVID vaccine during the pandemic.
Legal Implications and Settlement
The deal also marks the end of CureVac’s long-standing legal dispute with BioNTech regarding alleged mRNA patent infringements. This agreement resolves the years of legal tensions and sets the stage for collaboration instead of competition in the mRNA space.
Exchange Terms and Support
The transaction will see each CureVac share exchanged for approximately $5.46 in BioNTech ADS, subject to a collar mechanism based on BioNTech’s share price. The deal has garnered backing from significant stakeholders, including Dietmar Hopp, co-founder of SAP SE and a major investor in CureVac. The German government, holding a 13% stake in CureVac, has also expressed support for the creation of a new German biotech powerhouse.