BERLIN — Germany’s BioNTech has signed a deal to acquire its former Covid-19 vaccine competitor CureVac for around $1.25 billion (€1.08 billion), the companies announced today.

Both biotechs are developers of mRNA vaccine technology and were rivals in the race to produce a Covid-19 vaccine in the height of the pandemic.

BioNTech joined forces with U.S. pharma Pfizer and continues to dominate the market with its updated Covid-19 shots. After U.S. President Donald Trump’s attempt to buy the company, CureVac failed to get its candidate approved and sold the rights to its Covid-19, flu and bird flu vaccine programs last year. 

Both German companies have continued mRNA programs on so-called cancer vaccines.

“We intend to bring together complementary capabilities and leverage technologies with the goal of advancing the development of innovative and transformative cancer treatments,” Uğur Şahin, BioNTech CEO, stated. 

CureVac shareholders will get an exchanged BioNTech share for approximately $5.46. In total, the current shareholders will hold 4-6 percent of BioNTech. CureVac will be absorbed by BioNTech and the brand will no longer exist.

Germany invested €300 million into CureVac during the pandemic and held 23 percent of its shares. While the government has sold some shares in recent years, it still remains a shareholder and has to accept the offer.

The news lands as Europe hatches a plan to boost its bioeconomy with a forthcoming Biotech Act, which is expected to support the growth of smaller companies and smooth out the regulatory processes for innovative therapies.