BioNTech to acquire China's Biotheus in $800m deal

The acquisition would grant BioNTech full global rights to the promising bispecific antibody BNT327/PM8002, which was designed to target both PD-L1 and VEGF-A in a single treatment.

BioNTech said the combination aimed to enable the immune system to recognise and attack cancer cells, while simultaneously cutting off the blood supply that tumours needed to grow, potentially establishing BNT327 as a new standard of care for treating solid tumours.

The purchase agreement included an additional $150m in milestone payments, potentially bringing the deal’s total value to $950m.

Scheduled for completion in the first quarter of 2025, the acquisition followed a $55m licensing deal between BioNTech and Biotheus last year, which gave BioNTech rights outside of Greater China.

Now, by fully acquiring Biotheus, BioNTech would gain direct access to the Chinese biotech’s drug development infrastructure, including a biologics manufacturing facility and a skilled workforce of over 300 employees, positioning it to advance clinical trials and potentially expedite regulatory pathways in China.

The company said BNT327/PM8002 had demonstrated encouraging clinical results in more than 700 patients, with registrational trials in lung and breast cancers planned for 2024 and 2025.

BioNTech said it also intended to explore combinations with other treatments, including antibody-drug conjugates from its existing portfolio.

It said it saw BNT327’s dual-target approach as a significant advancement over single-action therapies like Merck’s Keytruda - currently a top-selling checkpoint inhibitor worldwide.

The acquisition was part of BioNTech's broader oncology strategy, backed by the financial success of its Covid-19 vaccine partnership with Pfizer, which had allowed it to pursue an aggressive expansion into cancer therapeutics.

“The acquisition of Biotheus builds on our successful ongoing collaboration on BNT327/PM8002 and other investigational bispecific antibodies,” said professor Ugur Sahin, chief executive officer and co-founder of BioNTech.

“We believe that BNT327/PM8002 has the potential to set a new standard of care in multiple oncology indications, surpassing traditional checkpoint inhibitors.

“We are committed to advancing its research and development in combination with our investigational mRNA vaccines, targeted therapies, and immunomodulators with the aim of enhancing outcomes for patients with solid tumours.”

At 1658 CET (1558 GMT), shares in BioNTech were up 4.5% in Frankfurt at €104.50.

Reporting by Josh White for Sharecast.com.