BioNTech has agreed to acquire German biotech rival CureVac in a $1.25 billion all-stock deal, strengthening its ambitions in mRNA-based cancer therapies and consolidating its position post-COVID.
The deal will give CureVac shareholders a 55% premium over the company’s three-month average share price and a 4%–6% stake in BioNTech. CureVac shares surged 27% on the news, reaching a five-month high. BioNTech shares slipped 2%.
Both firms were once competitors in the COVID vaccine race but are now shifting their focus to oncology. BioNTech stated that the acquisition will speed up its cancer immunotherapy development and enhance its production and sales capabilities. CureVac had already divested its COVID and flu vaccine programs to GSK and shifted focus to oncology, following setbacks during the pandemic.
The deal also ends CureVac’s longstanding legal battle with BioNTech over mRNA patent rights and vaccine revenue claims. CureVac’s valuation once soared on vaccine hopes, hitting €120 per share in late 2020. It now trades near €4.65.
BioNTech is looking to reaffirm its biotech relevance beyond the pandemic by doubling down on its cancer treatment portfolio after receiving cash from its COVID partnership with Pfizer.
