BioNTech to Acquire CureVac in $1.25 Billion Deal to Boost mRNA Cancer Therapy

BioNTech and CureVac’s Purchase Agreement

Image Credits: France 24

Announcement

BioNTech and CureVac confirmed their entry in the official purchase agreement. Considering this agreement, BioNTech plans to acquire all shares of CureVac. CureVac, a leading clinical-stage biotech company, is successfully integrating effective medicines in infectious diseases and oncology related to messenger ribonucleic acid (MRNA). The transaction of shares will bring two highly-potential companies together to occupy the first position in the competitive MRNA companies. This acquisition is a contribution to the healthcare market.

The Acquisition

This acquisition is a step towards a transformative change for BioNTech, fueling research, manufacturing, commercialization, and development in investigational mRNA-based cancer immunotherapy. The transaction will complement the potential and technologies of BioNTech in MRNA design and manufacturing. BioNTech reaps benefits from this transaction by paving the way to build a strong oncology strategy that consists of two pan-tumor programs. Also, sharpening the focus on BNT327 (PD-L1*VEGF-A bispecific antibody candidate) and mRNA-based cancer immunotherapy candidates. The acquisition of the transaction received support from CureVac’s Co. KG, affiliates, and prominent shareholder Dievini Hopp biotech holding GmbH.

Terms of the Purchase Agreement

The terms state that all CureVac shares will be liable for exchanged for $5.46 in BioNTech ADS, which will be combined equity value for CureVac of $1.25 billion. This will be subject to the adjustments further mentioned in the agreement. The adjustment to the collar mechanism is precisely mentioned in the purchase agreement. The closing of the exchange offer between CureVac and BioNTech will enforce corporate reorganization of CureVac and its other subsidiaries. This will lead to BioNTech’s 100% authority over the CureVac business.

Views and Statements

MD, CEO and Co-founder of BioNTech, Prof. Ugur Sahin said, “The transaction is a valuable block to build in BioNTech’s oncology strategy and a beneficial investment in cancer medicine. The company plans to add advanced capabilities and accelerate technologies to achieve the goal of targeting the development of transitional and innovative cancer treatments. The coming years are to develop new standards of care for several types of cancer.”

CEO of CureVac, Dr. Alexander Zehnder, said, “This transaction is a business decision that demonstrates shared commitment to elevate the performance of mRNA in the technological sector to generate innovative therapies with great speed.” Further, he added, “Both companies have been operating with a similar ambition for more than two decades. The transaction will integrate all the factors, such as manufacturing expertise, scientific capability, and advanced technologies."