Following the news of BioNTech’s planned purchase, CureVac N.V. (NASDAQ: CVAC) had a significant spike in trading during the previous session. The revelation that BioNTech plans to buy CureVac in an all-share deal for around $1.25 billion helped the stock close Thursday up more than 37%.
Combination to Promote Research in mRNA-Based Oncology
The strategic purchase is intended to strengthen BioNTech’s dedication to creating cutting-edge mRNA-based cancer immunotherapies, according to a Bloomberg story. Through this deal, two previous rivals in the COVID-19 vaccination race are now joining together to further cancer innovation.
CVAC shareholders are expected to receive a premium of 55% over the three-month average price, resulting in a 4%–6% equity interest in BioNTech post-transaction.
Ending Legal Disputes, Refocusing Strategy
The deal will also settle CureVac’s ongoing litigation against BioNTech over alleged mRNA patent infringements and claims to vaccine-related revenues. After selling its COVID-19 and flu vaccine projects to GlaxoSmithKline (GSK), CVAC changed its focus to cancer. The company had previously laid off employees due to delays in the development of its pandemic-era vaccine.
Offer Supported by Important Parties
A collar mechanism will be used to modify the exchange ratio in accordance with BioNTech’s average share price, with each CureVac share being worth about $5.46 in BioNTech American depositary shares (ADS). Dietmar Hopp, a co-founder of SAP who has a 37% holding in CVAC, is among the notable shareholders who have supported the acquisition.
Additionally, the German government, which has a 13% ownership following funding during the pandemic, expressed early endorsement of the acquisition, highlighting the emergence of a new national biotech leader, even if a formal review is still continuing.
Strategic Growth
This purchase follows BioNTech’s recent collaboration with Bristol Myers Squibb to create cutting-edge cancer therapies that may rival Merck’s Keytruda, the market leader. Beyond its success during the pandemic, BioNTech has shifted its attention to cancer, as seen by this agreement, which might cost up to $11.1 billion.
