BioNTech Secures 82% Stake in CureVac in mRNA Consolidation
The acquisition solidifies BioNTech's position in cancer immunotherapy as it absorbs its German biotech rival after a successful exchange offer.
BioNTech has successfully secured a controlling stake in its German rival CureVac, a landmark move that consolidates the country’s pioneering mRNA technology sector and sharpens BioNTech's strategic focus on cancer therapies.
In an announcement Wednesday morning, BioNTech confirmed it had met the minimum acceptance condition in its all-stock exchange offer for CureVac shares. A total of 184.07 million shares were tendered, representing approximately 81.74% of CureVac's outstanding stock, according to the company's official statement. The deal, first announced in June, values CureVac at approximately $1.25 billion.
The market reaction was measured, with BioNTech (BNTX) shares trading down about 1.3% to $96.11 in midday trading, suggesting investors are weighing the long-term strategic benefits against the costs of integration. CureVac (CVAC) shares also dipped by 1.7% to $5.11.
The acquisition marks a pivotal chapter for two of Germany's most prominent biotechnology firms. While both were central to the development of mRNA vaccines, their fortunes diverged significantly during the COVID-19 pandemic. BioNTech, in partnership with Pfizer, launched one of the world's most successful vaccines, while CureVac's own candidate failed to meet efficacy targets in late-stage trials.
This transaction is less about revisiting the pandemic race and more about positioning for the future of mRNA medicine. BioNTech has explicitly stated the strategic rationale is to bolster its capabilities in mRNA-based cancer immunotherapy. By integrating CureVac's technology, intellectual property, and manufacturing assets, BioNTech aims to accelerate its pipeline of treatments for oncology and infectious diseases.
"The strategic rationale focuses on bolstering BioNTech's mRNA-based cancer immunotherapy, enhancing R&D, manufacturing, and commercialization," noted a report from Investing.com ahead of the deal's closing. The move is seen as a way to consolidate expertise and create a dominant European force in a field largely defined by the rivalry between BioNTech and its U.S.-based competitor, Moderna.
Analysts have offered a mixed but generally constructive view of the deal's potential. While acknowledging CureVac's past clinical setbacks, many see long-term value in the consolidation of its technology. H.C. Wainwright recently raised its price target on BioNTech to $140, maintaining a 'Buy' rating. In contrast, TD Cowen holds a more cautious 'Hold' rating with a $116 price target, reflecting a broader range of outcomes for the company's post-COVID transition.
Under the terms of the offer, CureVac shareholders will receive 0.05363 of a BioNTech American Depositary Share (ADS) for each CureVac share. The path to the acquisition was cleared last month when CureVac shareholders overwhelmingly approved matters related to the exchange offer, with over 99% of votes cast in favor, according to company filings.
With the minimum acceptance threshold now met, BioNTech is expected to move forward with integrating CureVac's operations. The successful offer solidifies BioNTech's foundation as it pivots from its pandemic-era success toward building a sustainable, multi-platform biotechnology powerhouse focused on oncology.