BioNTech has agreed to acquire mRNA specialist CureVac for approximately $1.25bn, as the big pharma company amps up its strategy to offer cancer treatments using the modality.
According to the deal, each CureVac share will be exchanged for approximately $5.46 in BioNTech American depositary shares (ADS). This gives an aggregate equity value of around $1.25bn for CureVac.
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The transaction will see BioNTech assimilate its former rival in the Covid-19 vaccine arena. The pharma companies said the deal will “bring together two highly complementary companies based in Germany” that can “fully realise the transformative potential of mRNA medicine”.
Shares in BioNTech rose 0.17% at market open on 12 July, reaching a price of $105.64, following the announcement. The pharma company has a market cap of $25.3bn.
The agreement underscores BioNTech’s strategy to become a dominant player in mRNA-based cancer immunotherapies. The company has struggled with revenue in recent years as demand waned for Covid-19-related products. However, it could be well positioned to harness the oncology market given its strong expertise in mRNA technology – a modality that has already showed promise in clinical trials.
“BioNTech aims to strengthen the research, development, manufacturing, and commercialisation of investigational mRNA-based cancer immunotherapy,” BioNTech said in a statement accompanying the acquisition.
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By GlobalDataIn July 2024, CureVac streamlined its focus towards oncology after selling influenza and Covid-19 vaccine development to GSK in a deal worth nearly €1.5bn.
This is the second big oncology deal for BioNTech this month, after MSD licensed a bispecific cancer drug from the company in a deal rising to a potential $11bn.
BioNTech’s CEO Ugur Sahin said: “This transaction is another building block in BioNTech’s oncology strategy and an investment in the future of cancer medicine.
“We intend to bring together complementary capabilities and leverage technologies with the goal of advancing the development of innovative and transformative cancer treatments and establishing new standards of care for various types of cancer in the coming years.”
BioNTech also bolstered its cancer platform in November 2024 when it acquired oncology biotech Biotheus for an upfront payment of $800m.
