BioNTech Raises $250 Million for Vaccine Race
German biotech BioNTech, which is working on developing an mRNA vaccine against Covid-19 and has aligned itself with US pharma major Pfizer, this week raised $250 million (€223 million) in an offering that attracted Singapore state-owned private equity investor Temasek and other unnamed accredited investors.
The young company’s share price initially gained 12% on the news, rising to touch $70. This was equal to four times the issuing price in its stock market debut ten months ago. The latest cash-raising effort is due to be finalized in mid-August this year.
Prior to the issue, the European Investment Bank signed a €100 million debt financing deal with BioNTech, planned to be completed in two €50 million tranches as the company’s vaccine program advances.
BioNTech was founded with the goal of developing immuno-oncology products but it most recently has been in the spotlight for its Covid-19 vaccine candidate, BNT162, for which it is expected to report clinical trial data next month.
One of two German vaccine aspirants, the Mainz-based biotech was the first to receive the green light to conduct clinical studies with volunteers, a prerequisite for being granted approval. It also has also awarded Chinese rights for BNT162 to Shanghai Fosun.
BioNTech and Pfizer began human testing in Germany in April, and a US study was launched in early May.
Prior to the late June rights issue, the European Investment Bank signed a debt financing deal with the German biotech. The funding will be bundled in two €50 million tranches as the vaccine program advances, and the flow of cash will be contingent on reaching certain milestones.
The capital injection will help with ongoing development and support BioNTech's efforts to scale up production in Europe. The company already operates three mRNA plants in Germany and has been working to add capacity for its Covid candidate.
As part of the BNT162 program, the companies are testing four mRNA vaccines to prevent the novel coronavirus, thus giving the partners a wide range to choose from.
In mid-June, the German government said it was taking a 23% stake, worth €300 million, in privately owned CureVac, another firm preparing an mRNA vaccine against Covid-9. Shortly afterward, CureVac got the go-ahead to start its first human trials.
Both BioNtech and CureVac are regarded as potential front-runners in the race to develop a Covid vaccine.
