Biontech's Multi-Billion Dollar Buyout of Curevac Boosts Cancer Therapy Landscape
Biotech giant BioNTech set to take over German rival CureVac
Get excited, folks! The German pharmaceutical world is about to shake things up as Biontech, a Mainz-based player, intends to acquire Tübingen's Curevac. The aim? To beef up their mRNA-based cancer therapy know-how. The government has shown its backing for the deal, leaving us wondering if it'll hit the billion-dollar mark.
Biontech, the star of Mainz, is eager to snap up all shares of Curevac. The proposed merger aims to supercharge Biontech's mRNA cancer therapy expertise. The transaction will likely break the bank, given its multi-billion dollar valuation. This blockbuster deal is the second in a string of mega-acquisitions for Biontech in a short span.
In the race for a COVID-19 vaccine in 2020, both Biontech and Curevac battled it out, with Biontech ultimately claiming the victory. Biontech is now targeting cancer immunotherapies and is poised to submit the first US application for a next-gen chemotherapy for ovarian cancer by year's end.
The offer for each Curevac share stands at around $5.46, valuing Curevac at around $1.25 billion (€1.08 billion). If the deal goes through, Curevac shareholders will hold between 4 and 6 percent of Biontech. Biontech expects the government's KfW banking group to support the transaction, which would bring the total to 50.08 percent of Curevac shares.
Biontech's CEO, Ugur Sahin, East TNT on the merger, stating, "This transaction is another building block in Biontech’s oncology strategy and an investment in the future of cancer medicine."
What's the big deal with mRNA in cancer therapy? Antibody-drug conjugates are used in cancer therapies, targeting chemo more precisely on cancer cells with the help of antibodies. mRNA technology targets the body's own protein blueprints, making waves in the world of COVID-19 vaccines.
Curevac has been delving into mRNA tech for years, but the company pulled its first vaccine candidate from the approval process due to low efficacy, stirring patent disputes with Biontech. Recovering from rough waters, Curevac has trimmed the fat and refocused on research.
"This transaction means more to me than just a business step," said Curevac CEO Alexander Zehnder. "For over two decades, both companies have pursued similar goals and tackled challenges from different angles." Now, they will join forces under one roof, with Curevac’s research and development site in Tübingen being maintained.
Notables: The deal is reminiscent of Biontech's partnership with US conglomerate Bristol Myers Squibb over the development of BNT327, a promising cancer drug candidate designed to counteract tumors that suppress the immune system. The agreement calls for billion-dollar payments from the US conglomerate to Biontech, with the possibility of additional payouts if certain development milestones are achieved.
Sources: ntv.de, rog/dpa
- Dietmar Hopp
- Curevac
- Biontech
- Mergers and Acquisitions
Insight: The acquisition of Curevac by Biontech signifies a significant milestone in the world of mRNA-based cancer therapies. The deal, valued at approximately $1.25 billion, aims to bring together complementary scientific capabilities, proprietary mRNA technologies, and manufacturing expertise under one roof, thus accelerating the development and commercialization of mRNA-based cancer immunotherapies and potentially establishing new standards of care for various cancer types.
Community policy should address the potential impact of the Biontech-Curevac merger on employment, particularly in the pharmaceutical industry.
Employment policy may need to be reevaluated to accommodate the anticipated growth in mRNA technology research and development following the merger, with a focus on technology-related job opportunities.
