BioNTech Acquires CureVac for $12.5 Billion, Stock Surges 31%

BioNTech has agreed to acquire CureVac in a deal valued at approximately $12.5 billion. The acquisition will be executed entirely through stock, with CureVac shareholders receiving approximately 5.46 shares of BioNTech for each share of CureVac they hold. This price represents a 34% premium over CureVac's closing price on the previous trading day. Upon completion of the transaction, CureVac shareholders will own between 4% and 6% of BioNTech's shares. Following the announcement, CureVac's stock price surged by over 31% in pre-market trading.

This acquisition marks the end of a long-standing competitive relationship between the two companies, which intensified during the development of COVID-19 vaccines. BioNTech, in collaboration with Pfizer, successfully developed and launched an mRNA-based COVID-19 vaccine, establishing itself as a leading biotechnology company in Europe. In contrast, CureVac's COVID-19 vaccine candidate did not perform well in clinical trials and was not approved for market use. CureVac has since shifted its focus from infectious disease research to cancer immunotherapy. Last year, CureVac sold its vaccine business to GlaxoSmithKline.

BioNTech's CEO, Ugur Sahin, emphasized that oncology is a key area of focus for BioNTech, and the acquisition of CureVac will integrate "complementary resources" to strengthen BioNTech's capabilities in cancer treatment. The deal also provides a way for the German government to exit its investment in CureVac. During the pandemic, the German government acquired a 13.3% stake in CureVac and will receive approximately $1.63 billion in BioNTech shares as part of the transaction. BioNTech stated that the German government supports this acquisition.

BioNTech anticipates that more than half of CureVac's shareholders, including its major investor Dietmar Hopp, a German billionaire and co-founder of software giant SAP SE, will sign agreements to support the transaction. This acquisition is the latest in a series of moves by BioNTech to redirect funds from its COVID-19 vaccine business into its expanding cancer treatment portfolio. Earlier this month, BioNTech granted a license for a next-generation cancer drug to Bristol Myers Squibb in a deal valued at $111 billion.