BioNTech acquires CureVac for $1.25bn to boost mRNA capabilities

BioNTech is set to bolster its capabilities in messenger RNA (mRNA) technology through the acquisition of CureVac for approximately $1.25 billion. This strategic move is designed to enhance BioNTech's research, development, manufacturing, and commercialization of its experimental mRNA-based cancer immunotherapies.

mRNA, a single-stranded molecule, plays a crucial role in instructing cells to produce proteins or protein fragments using the body's own mechanisms. The significance of mRNA was highlighted during the COVID-19 pandemic, as it formed the basis for vaccines used worldwide to combat the virus.

BioNTech has stated that the acquisition is a significant step forward in implementing its oncology strategy. This strategy revolves around two comprehensive tumor programs: mRNA-based cancer immunotherapy candidates and a bispecific antibody candidate, BNT327, which targets PD-L1 and VEGF-A.

Ugur Sahin, CEO and co-founder of BioNTech, described the acquisition as a critical component of BioNTech’s strategy in oncology. He emphasized that this is an investment in the future of cancer treatment. Sahin remarked, “We aim to combine complementary capabilities and utilize technologies to advance innovative cancer treatments. Our goal is to set new standards of care for various cancer types in the years ahead.”

According to the agreement, expected to be finalized this year, each CureVac share will be exchanged for approximately $5.46 in BioNTech American depositary shares. After the acquisition, CureVac shareholders are anticipated to hold between 4% and 6% of BioNTech.

Alexander Zehnder, CEO of CureVac, expressed that the agreement signifies a mutual dedication to harnessing the full potential of mRNA as a groundbreaking technology to develop transformative therapies with increased efficiency and speed.

This acquisition follows closely on the heels of BioNTech’s recent deal with Bristol Myers Squibb (BMS), valued at over $11 billion, to jointly develop and market BNT327. This candidate is under evaluation in multiple clinical trials, including phase 3 studies for first-line treatment of small cell lung cancer and non-small cell lung cancer. Additionally, a late-stage trial for first-line triple-negative breast cancer is anticipated to commence by the end of this year.

Ugur Sahin commented on the collaboration with BMS, stating that it aims to accelerate and significantly extend the development of BNT327 to fully realize its potential.