Biontech Tsunami in German Biotech: The Takeover of Rival Curevac
Biontech assumes control over Curevac, a fellow German pharmaceutical company.
Let's cut to the chase - Biontech, the big kahuna of the German biotech industry, is gunning for its Tübingen-based competitor, Curevac. The Mainz-based powerhouse announced its intention to grab all the shares of Curevac they can get their hands on. With this move, Biontech aims to beef up its expertise in mRNA-based cancer treatments.
The transaction is projected to cost Biontech billions and marks its second major deal in a short span of time. The news of the takeover caused Curevac shares to skyrocket at the start of trading on the US technology exchange Nasdaq, soaring by around 35% to $5.48. Biontech shares? They did a little happy dance too, jumping by 2.15% to $107.73.
Timeline: 2025 or Bust
In this planned transaction, Biontech is planning to exchange each Curevac share for Biontech American Depositary Shares (ADS). The offer is set at approximately $5.46 per Curevac share, valuing the Tübingen-based company at around $1.25 billion (€1.08 billion). The takeover is slated for the end of 2025, subject to regulatory approvals.
Upon completion of the deal, Curevac shareholders are expected to hold between 4 and 6% of Biontech. Biontech seems pretty confident in its path to a complete takeover, as shareholders holding 36.76% of Curevac shares, including biotech holding Dievini of SAP co-founder Dietmar Hopp, have signed agreements to tender their shares, subject to certain conditions. The German government has given the takeover a thumbs-up, and Biontech expects the KfW, which holds 13.32% of Curevac in the name of the Federal Republic of Germany, to support the transaction.
The Curevac Research Haven Remains Intact
Once seen as a front-runner in developing a COVID-19 vaccine, Curevac was not as lucky as Biontech. Their first vaccine candidate had to be withdrawn due to relatively low efficacy, leading to patent disputes with Biontech. Recently, Curevac has been streamlining its operations, shedding jobs and focusing on research.
"This transaction is far more than just a business step for me," said Curevac CEO Alexander Zehnder. "Both companies have been chasing similar goals for over two decades, often tackling challenges from different angles." Now, they will be united under one roof, with the Curevac research and development site in Tübingen staying put.
Curevac founder Ingmar Hoerr cheerfully approved the planned acquisition, calling it a positive sign for Europe. It will create a European counterpart to US giant Moderna, he explained to the German Press Agency. Additionally, the acquisition would resolve patent disputes between Curevac and Biontech, which had previously stymied progress.
Biontech's US Collaboration Brings Home the Bacon
For Biontech, this transaction follows hot on the heels of announcing a partnership with US conglomerate Bristol Myers Squibb. The collaboration focuses on developing BNT327, a promising cancer drug candidate that targets tumors that suppress the body's own immune system. This deal includes significant payments from the US company to Biontech.
In other words, this takeover is just one more step in Biontech's quest to dominate the mRNA-based cancer therapy scene. And they're not done yet - their sights are set on submitting their first approval application in the US by the end of this year for a next-generation chemotherapy for uterine cancer. Stay tuned for more updates from the ever-evolving world of biotech!
Science and health-and-wellness intersect as Biontech makes a move to acquire Curevac, a medical-conditions focused biotech company. The anticipated takeover could bolster Biontech's expertise in mRNA-based cancer treatments, while also resolving existing patent disputes between the two firms.
