Germany to Acquire stake in CureVac to Search for Coronavirus Vaccine | Financial Buzz

Germany to Acquire stake in CureVac to Search for Coronavirus Vaccine

Germany will take a stake in CureVac, a biotechnology company that is working to develop a COVID-19 vaccine, Minister of Economy, Peter Altmaier said on Monday.  The Berlin government will acquire a 23% stake for USD 337.4 Million in a deal that puts the value of the company at 1.3 Billion Euros.  Recently, reports of the United States government attempted to acquire CureVac & its assets in March where Altmaier and the interior minister stating that CureVac should be kept German. 

Altmaier proclaimed that the government will strengthen its life sciences and biotechnology sectors in Germany and that Berlin will not have influence over CureVac’s business strategy.  “The German federal government has decided to invest in this promising company because it expects that this will accelerate development programmes and provide the means for CureVac to harness the full potential of its technology,” said the minister, adding the transaction would not require EU approval.  “With this investment we aim to give CureVac financial security so that it can continue to work on vaccine production with the same commitment,” he told a news conference.

Ownership of the country’s two COVID-19 vaccine developers has been a sensitive subject.  CureVac and BioNTech, Berlin has administered new powers to itself in May to veto foreign takeover bids for healthcare companies.