BioNTech secures CureVac at a 55% discounted price.

Riding the Merger Wave in Biotech: BioNTech Grabs CureVac

The Biotech sector's merry-go-round continues unabated, with Mainz-based BioNTech nabbing its Tübingen competitor, CureVac. Both companies have carved a niche in the limelight with their mRNA technology, which took center stage during the COVID-19 pandemic. BioNTech, with its coronavirus vaccine, is ready to build upon this technology.

BioNTech is offering approximately $5.46 per CureVac share, amounting to $1.25 billion for the entire biotech company. This offer presents a 55% premium over the average price over the past three months.

BioNTech provides the following transaction details: "The exchange ratio will be determined based on the volume-weighted average price (VWAP) of BioNTech ADSs at the end of the 10-day trading period prior to the offer's expiration. The exchange ratio is subject to an adjustment mechanism, with two possible scenarios: if the VWAP exceeds $126.55, the exchange ratio will be 0.04318. On the other hand, if the VWAP drops below $84.37, the exchange ratio will be 0.0646. Upon completion, CureVac shareholders are expected to own between 4% and 6% of BioNTech."

CureVac (WKN: A2P71U) Some long-term CureVac shareholders might feel disheartened with the deal. This sentiment is shared by the German government, which invested €300 million in CureVac in 2020. At that time, the share price was significantly higher. The deal, however, has been approved by both companies' boards and supervisory boards, pending customary closing conditions and a minimum acceptance threshold of 80% of CureVac shares.

Ugur Sahin, BioNTech CEO, is optimistic about the planned merger with Tübingen-based CureVac, stating, "This transaction is another stepping stone in BioNTech's oncology strategy and an investment in the future of cancer medicine. We aim to bring together complementary skills and technologies. Our goal is to drive the development of innovative and transformative cancer treatments and establish new treatment standards for various types of cancer in the coming years."

BioNTech (WKN: A2PSR2) The short-term-oriented CureVac shareholders are likely to welcome the transaction. On the Tradegate trading platform, the stock is surging 29% to €4.59. AKTIONÄR's recommendation from issue 20/25 (07.05.) is up 54%. Investors are encouraged to continue holding the stock. Since acquiring Biotheus last year, BioNTech is once again making a canny move, as patent disputes have been lingering between the two companies for some time. If further successes are achieved in the field of oncology, the stock could potentially trade significantly higher in the long term.

Conflict of interest note:

The CEO and majority shareholder of the publisher Börsenmedien AG, Mr. Bernd Förtsch, has taken direct and indirect positions in the financial instruments mentioned in the publication or related derivatives, which could benefit from the potential price development resulting from the publication: BioNTech, CureVac.

Fact Box:

Long-term Implications for the Biotech Sector:
Consolidation and Innovation: The deal symbolizes a trend of consolidation in the biotech arena, particularly in the mRNA technology space, enabling both companies to improve mRNA design, delivery formulations, and manufacturing technologies, leading to more innovative solutions.
Increased Competition and Collaboration: The reduced competition between two mRNA leaders may encourage other biotech companies to focus on other areas or form alliances, potentially accelerating the development of new treatments across various therapeutic areas.
Patent Dispute Resolution: The acquisition could resolve ongoing patent disputes between BioNTech and CureVac, creating a more stable mRNA technology landscape and reducing legal costs and uncertainties for both parties.
Long-term Implications for Cancer Medicine:
Enhanced Cancer Immunotherapy: The merger bolsters BioNTech's oncology strategy, strengthening its research, development, manufacturing, and commercialization of mRNA-based cancer immunotherapy candidates, potentially leading to more effective treatments for various types of cancer.
Advancements in mRNA Technology: With CureVac's cutting-edge research and manufacturing capabilities at its disposal, BioNTech can accelerate the development of mRNA-based cancer vaccines and therapies, potentially establishing new standards for cancer care.
Potential for New Therapeutic Approaches: The combined scientific capabilities and proprietary technologies could enable the exploration of novel therapeutic approaches, such as personalized cancer treatments or combination therapies that leverage mRNA technology.

The merger between BioNTech and CureVac, two companies known for their work in mRNA technology, could lead to advancements in health-and-wellness, specifically in cancer medicine, as BioNTech aims to bring together complementary skills and technologies to drive the development of innovative and transformative cancer treatments.
This consolidation in the biotech sector, represented by the BioNTech-CureVac merger, may foster competition and collaboration in finance and business, as other companies may choose to focus on different areas or form alliances, potentially accelerating innovation and progress in various therapeutic fields.