BioNTech, following the recent acquisition of CureVac,...
BioNTech's Corner-cutting Acquisition:
BioNTech, the Mainz marvel of a biotech company, made a splash last Wednesday with the announcement of their acquisition of fellow German contender, CureVac. This deal, set to go down in 2025, has analysts from Deutsche Bank reexamining BioNTech's stock and weighing in on the potential deal's impact.
The bank's analysts continue to advocate for pumping cash into BioNTech, setting a $140 target price. Emmanuel Papadakis, one of these analysts, initially regarded the move as neutral ground for BioNTech but a major plus for CureVac. The Tübingen-based mRNA specialists have been struggling to keep up before and after the Covid-19 pandemic.
Both companies have given the acquisition a green light, but there are, as always, regulatory hurdles to conquer and shareholder acceptance to ensure. Roger Song, another analyst from Jefferies, foresees the "smart as a fox" deal closing within the next couple of months, with a 90% chance of success.
As a result, Jefferies has called CureVac's stock a "sit tight and watch" scenario, assigning it a modest value of $5. BioNTech is shelling out around $5.46 per CureVac share, or $1.25 billion for the whole shebang.
With the acquisition of CureVac, BioNTech takes another strategic step, wrapping up a long-standing patent dispute between the two companies. For now, CureVac investors should keep their fingers crossed. If BioNTech racks up some major study and approval successes, particularly in oncology, their stock could skyrocket in the future. But remember, it's still a rollercoaster ride for those with a taste for risk.
A heads-up for the fine print:
The CEO and majority shareholder of the publisher Boerse Medien AG, Mr. Bernd Foertsch, has invested in both BioNTech and CureVac, with the potential to benefit from the price action following the publication.
Details:- The transaction values CureVac at approximately $1.25 billion and offers each CureVac shareholder BioNTech American Depositary Shares (ADSs) at a premium, pending regulatory approvals and shareholder acceptance.- The deal is expected to close by the end of 2025 and will give BioNTech access to CureVac's complementary scientific capabilities, technologies, and expertise in the mRNA field, accelerating their pipeline development in oncology and infectious diseases.- The acquisition strengthens BioNTech's position as a global leader in mRNA technology and cancer immunotherapy while providing CureVac with the opportunity to leverage BioNTech's resources, infrastructure, and global reach for scaling mRNA development.- The deal may encourage further consolidation in the biotech sector, particularly among companies focused on next-generation therapies.
- This acquisition could potentially attract investors from the finance sector, as the deal values CureVac at approximately $1.25 billion and offers each shareholder BioNTech's American Depositary Shares (ADSs) at a premium.
- As a result of this acquisition, BioNTech will not only strengthen its position in the mRNA field but also expand its reach in health-and-wellness, particularly in oncology and infectious diseases, which may have implications for business and research collaborations in the future.
