BioNTech takes over CureVac in $1.25 billion all-stock deal among COVID rivals
By Ludwig Burger
(Reuters) -German biotech firm BioNTech has agreed to acquire domestic peer CureVac for about $1.25 billion worth of BioNTech shares, it said on Thursday, to boost its work on new mRNA-based cancer treatments.
Under the deal, which pairs two former rivals in the race to develop COVID-19 vaccines, CureVac shareholders stand to receive a premium of 55% over the three-month average share price, and leave them with a stake of about 4%-6% in BioNTech, the suitor said.
CureVac's Frankfurt-listed shares surged 27% to a five-month high, valuing the company at 1.04 billion euros ($1.2 billion), while BioNTech shares were down 2% by 1237 GMT.
The deal further underscores BioNTech's long-term pursuit of new cancer treatments as it aims to show that its success as Pfizer's COVID-19 vaccine partner, which left its balance sheet flush with billions of euros in cash, was not a fluke.
"With the acquisition, BioNTech aims to strengthen the research, development, manufacturing, and commercialization of investigational mRNA-based cancer immunotherapy," it said.
CureVac opted to focus on oncology about a year ago when it agreed to sell its remaining influenza and COVID-19 vaccine development to alliance partner GSK.
It had previously cut jobs as it sought to move beyond its failure to develop an mRNA-based COVID vaccine during the pandemic.
GERMAN BIOTECH CHAMPION
The agreement is also set to end CureVac's years-long legal fight over alleged mRNA patent infringement by BioNTech and for a share of vaccine revenues, where CureVac has made little progress.
CureVac shares were worth as much as 120 euros in December 2020 on hopes it would develop a COVID vaccine, more than double their initial public offer value in August of that year. They are now trading at 4.65 euros.
BioNTech won a major shot in the arm for its cancer drug activities last week when Bristol Myers Squibb agreed to pay up to $11.1 billion to jointly develop a next-generation cancer immunotherapy that could take on rival Merck & Co's best-selling drug Keytruda.
Each CureVac share will be exchanged for about $5.46 in BioNTech American depositary shares, or ADS, but subject to a so-called collar mechanism, BioNTech said.
If the 10-day volume-weighted average price of BioNTech ADS shortly before the closing of the offer exceeds $126.55, the exchange ratio would be 0.04318, and if the price is lower than $84.37, the exchange ratio would be 0.06476.
BioNTech said the deal was supported by SAP SE co-founder and football investor Dietmar Hopp, who holds a stake of about 37% in CureVac.
The German government, owner of about 13% in CureVac for its financial backing during the pandemic, said it welcomed in principle the creation of a "new German biotech champion", and that it would review the offer.
($1 = 0.8624 euros)
(Additional reporting by Christian Kraemer; Editing by Friederike Heine, Jan Harvey and Emelia Sithole-Matarise)
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
an hour ago
- Yahoo
US asks China to stop Iran from closing Strait of Hormuz
US Secretary of State Marco Rubio has called on China to prevent Iran from closing the Strait of Hormuz, one of the world's most important shipping routes. His comments came after Iran's state-run Press TV reported that their parliament had approved a plan to close the Strait but added that the final decision lies with the Supreme National Security Council. Any disruption to the supply of oil would have profound consequences for the global economy. China in particular is the world's largest buyer of Iranian oil and has a close relationship with Tehran. Oil prices have surged following the US' attack, with the price of the benchmark Brent crude reaching its highest level in five months. "I encourage the Chinese government in Beijing to call them (Iran) about that, because they heavily depend on the Straits of Hormuz for their oil," Marco Rubio had said in an interview with Fox News on Sunday. "If they [close the Straits]... it will be economic suicide for them. And we retain options to deal with that, but other countries should be looking at that as well. It would hurt other countries' economies a lot worse than ours." Around 20% of the world's oil passes through the Strait of Hormuz, with major oil and gas producers in the Middle East using the waterway to transport energy from the region. Any attempt to disrupt operations in the Strait could could send global oil prices skyrocketing. They jumped to their highest since January, with the price of Brent crude reaching $78.89 a barrel as of 23:22 GMT Sunday. "The US is now positioned with an overwhelming defence posture in the region to be prepared for any Iran counter attacks. But the risk for oil prices is the situation could escalate severely further," said Saul Kavonic, Head of Energy Research at MST Financial. The cost of crude oil affects everything from how much it costs to fill up your car to the price of food at the supermarket. China in particular buys more oil from Iran than any other nation - with its oil imports from Iran surpassing 1.8 million barrels per day last month, according to data by ship tracking firm Vortexa. Energy analyst Vandana Hari has said Iran has "little to gain and too much to lose" from closing the Strait. "Iran risks turning its oil and gas producing neighbours in the Gulf into enemies and invoking the ire of its key market China by disrupting traffic in the Strait", Hari told BBC News. The US joined the conflict between Iran and Israel over the weekend, with President Donald Trump saying Washington had "obliterated" Tehran's key nuclear sites. However, it's not clear how much damage the strikes inflicted, with the UN's nuclear watchdog saying it was unable to assess the damage at the heavily fortified Fordo underground nuclear site. Iran has said there was only minor damage to Fordo. Trump also warned Iran that they would face "far worse" future attacks if they did not abandon their nuclear programme. On Monday, Beijing said the US' attack had damaged Washington's credibility and called for an immediate ceasefire. China's UN Ambassador Fu Cong said all parties should restrain "the impulse of force... and adding fuel to the fire", according to a state-run CCTV report. In an editorial, Beijing's state newspaper Global Times also said US involvement in Iran "had further complicated and destabilized the Middle East situation" and that it was pushing the conflict to an "uncontrollable state".
Yahoo
an hour ago
- Yahoo
Who are the eight new vaccine advisers appointed by Robert F Kennedy?
Robert F Kennedy Jr, the US health secretary, named eight new vaccine advisers this week to a critical Centers for Disease Control and Prevention (CDC) panel after firing all 17 experts who had held the roles. New members of the panel include experts who complained about being sidelined, a high-profile figure who has spread misinformation and medical professionals who appear to have little vaccine expertise. Kennedy made the announcement on social media. 'All of these individuals are committed to evidence-based medicine, gold-standard science, and common sense,' Kennedy said in his announcement. 'They have each committed to demanding definitive safety and efficacy data before making any new vaccine recommendations.' Formally called the Advisory Committee on Immunization Practices (ACIP), the panel advises the CDC on how vaccines should be distributed. Those recommendations in effect determine the vaccines Americans can access. This week, Kennedy also removed the career officials typically tasked with vetting ACIP members and overseeing the advisory group, according to CBS News. Related: RFK Jr announces new panel of vaccine advisers after firing entire previous team Kennedy is a widely known vaccine skeptic who profited from suing vaccine manufacturers, has taken increasingly dramatic steps to upend US vaccine policy. 'ACIP is widely regarded as the international gold standard for vaccine decision-making,' said Helen Chu, one of the fired advisers, at a press conference with Patty Murray, a Democratic US senator. 'We cannot replace it with a process driven by one person's beliefs. In the absence of an independent, unbiased ACIP, we can no longer trust that safe and effective vaccines will be available to us and the people around us.' Arguably the most high-profile new member, Robert W Malone catapulted to stardom during the Covid-19 pandemic, appearing across rightwing media to criticize the Biden administration while describing himself as the inventor of mRNA technology. Messenger RNA technology powers the most widely used Covid-19 vaccines. While Malone was involved in very early experiments on the technology, researchers have said his role was limited. Malone's star rose quickly after appearing on the Joe Rogan podcast in 2022, where he and Rogan were criticized for spreading misinformation. On the show, Malone promoted the idea that both ivermectin and hydroxychloroquine could be possible treatments for Covid-19, but said research on the drugs was being suppressed. Ivermectin and hydroxychloroquine have not been shown to improve outcomes from Covid-19. 'Malone has a well-documented history of promoting conspiracy theories,' said Dr Jeffrey D Klausner, an epidemiologist and infectious disease expert at the University of Southern California, who recently told the New York Times he was in touch with Kennedy about his appointments. Kulldorff is a former Harvard professor of biostatistics and an infectious disease epidemiologist originally from Sweden. He said in an essay for the rightwing publication City Journal that he was fired because he refused to be vaccinated in line with the school policy. Like Malone, he rose to prominence during the pandemic as a 'Covid contrarian' who criticized the scientific consensus – views he said alienated him from his peers in the scientific community. He voiced his opposition to Covid-19 vaccine mandates and, in his essay, complained of being ignored by media and shadow-banned from Twitter. Kulldorff co-authored the Great Barrington Declaration, which called for limited closures instead of pandemic lockdowns before vaccines were available. The document became a touchstone for the American political right. Before the pandemic, Kulldorff studied vaccine safety and infectious disease, including co-authoring papers with members of CDC staff, such as on the Vaccine Safety Datalink. He was a member of the CDC's Covid Vaccine Safety Working Group in 2020, but said later he was fired because he disagreed with the agency's decision to pause Johnson & Johnson's Covid-19 vaccine and with Covid-19 vaccine mandates. He served on the Food and Drug Administration's (FDA) drug safety and risk management advisory committee around the same time. He has since enjoyed support from people already within the administration, including the Great Barrington Declaration co-author Dr Jay Bhattacharya, current head of the National Institutes of Health (NIH), and Dr Vinay Prasad, head of the Food and Drug Administration's (FDA) Center for Biologics Evaluation and Research, which handles vaccines. Meissner is a professor of pediatrics at the Geisel School of Medicine at Dartmouth. He previously held advisory roles at the FDA and CDC, including ACIP from 2008-2012. In 2021, Meissner co-wrote an editorial with Dr Marty Makary, now the head of the FDA, which criticized mask mandates for children. In April, he was listed as an external adviser to ACIP on the respiratory syncytial virus (RSV) committee. Notably, Meissner is listed in a new conflicts of interest tool launched by the health department in March. Kennedy had criticized the fired ACIP members as 'plagued with persistent conflicts of interest'. 'He's a card-carrying infectious disease person who knows the burden of these diseases, and he knows the risk and the benefit,' Dr Kathryn Edwards told CBS News. Edwards previously served as chair of the FDA's vaccine advisory panel. Pebsworth is a nurse and the former consumer representative on the FDA's vaccine advisory committee. She is also the Pacific regional director for the National Association of Catholic Nurses, according to Kennedy's announcement. In 2020, Pebsworth spoke at the public comment portion of an FDA advisory panel meeting on Covid-19 vaccines. There, she identified herself as the volunteer research director for the National Vaccine Information Center (NVIC), 'and the mother of a child injured by his 15-month well-baby shots in 1998'. The NVIC is widely viewed as an anti-vaccine advocacy organization 'whose founder Barbara Lou Fisher must be considered a key figure of the anti-vaccine movement', according to an article from 2023 on how to counter anti-vaccine misinformation. Levi is a professor of operations management at the MIT Sloan School of Management who Kennedy described as an 'expert in healthcare analytics, risk management and vaccine safety'. In 2021, he opposed Covid-19 booster shot approval during the public comment portion of an FDA advisory committee hearing. In 2022, he wrote an article calling for EMS calls to be incorporated into vaccine safety data, arguing that cardiovascular side-effects could be undercounted – an article that later required correction. The potential effects of Covid-19 vaccines on heart health have been a focal point of right-leaning criticism. Last month, Levi was criticized for publishing a pre-print paper – a paper without peer review – that he co-authored with Dr Joseph Ladapo, the Florida surgeon general, a vaccine skeptic. The paper alleged that people who took the Pfizer Covid-19 vaccine were more likely to die than those who received the Moderna vaccine. Kennedy described Ross as 'a Clinical Professor of Obstetrics and Gynecology at George Washington University and Virginia Commonwealth University, with a career spanning clinical medicine, research, and public health policy'. However, as first reported by CBS News, Ross's name does not appear in faculty directories for either school. A spokesperson for George Washington University told the outlet that Ross did work as a clinical professor, but 'has not held a faculty appointment … since 2017'. A spokesperson for Virginia Commonwealth University described Ross as 'an affiliate faculty member' at a regional hospital system in the Capitol region. He is also listed as a partner at Havencrest Capital Management, as a board member of 'multiple private healthcare companies'. Hibbeln is a California-based psychiatrist who previously served as acting chief for the section of nutritional neurosciences at the NIH. He describes himself as an expert on omega-3, a fatty acid found in seafood. He also serves on the advisory council of a non-profit that advocates for Americans to eat more seafood. He practices at Barton Health, a hospital system in Lake Tahoe, California. His work influenced US public health guidelines on fish consumption during pregnancy. Pagano is an emergency medicine physician from Los Angeles 'with over 40 years of clinical experience', and a 'strong advocate for evidence-based medicine', according to Kennedy.
CNBC
an hour ago
- CNBC
Gold subdued as dollar gains, markets await Iran response
Gold prices edged lower on Monday as investors favored the dollar following the U.S. attack on key Iranian nuclear sites over the weekend, with markets closely watching for Iran's response. Spot gold was down 0.2% at $3,362.29 an ounce, as of 0341 GMT. U.S. gold futures fell 0.2% to $3,378. "The US strikes on Iranian nuclear facilities resulted in the dollar receiving safe haven buying flows in the currency market," KCM Trade Chief Market Analyst Tim Waterer said. "This USD uptick had pegged gold back and caused an uncharacteristically subdued performance from the precious metal despite risks stemming from the conflict." The dollar rose 0.2% against its rivals, making gold more expensive for other currency holders. USD/ U.S. President Donald Trump on Sunday raised the question of a regime change in Iran following U.S. strikes against key military sites over the weekend, as senior officials in his administration warned Tehran against retaliation. Iran vowed to defend itself a day after the U.S. dropped 30,000-pound bunker-buster bombs onto the mountain above Iran's Fordow nuclear site. Meanwhile, Iran and Israel continued to trade volleys of missile attacks. An Israeli military spokesperson said Israeli fighter jets had struck military targets in western Iran. Shares slipped in Asia on Monday and oil prices briefly hit five-month highs, but there were no signs of panic selling across markets. The Federal Reserve's latest monetary policy report to Congress, released on Friday, said U.S. inflation remained somewhat elevated and the labor market was solid. On the technical front, spot gold may retest support at $3,348 per ounce, a break below could open the way toward $3,324, according to Reuters technical analyst Wang Tao. Elsewhere, spot silver rose 0.2% at $36.07 per ounce, platinum edged 0.1% higher to $1,269.17, while palladium gained 0.2% to $1,046.62.
