Biontech is buying in China for almost a billion dollars

With an acquisition in China, Biontech is advancing its oncology strategy to develop novel combination therapies against cancer. The Mainz-based company is taking over the biotechnology company Biotheus for an impressive $800 million and possible milestone payments of up to $150 million, as the companies announced on Wednesday. Biotheus specializes in the development of therapies for cancer and autoimmune diseases and is therefore so interesting for Biontech that CEO Uğur Şahin is making the largest transaction in the company’s history to date.

For the Mainz company, the takeover is a strategically important move on several levels. On the one hand, Biontech thereby secures the worldwide rights to its active ingredient candidate BNT327, which was previously developed in a strategic partnership with Biotheus. The bispecific antibody candidate is a type of cancer immunotherapy. He should play a central role in the treatment approach with combination therapies pursued by Biontech, as CEO Şahin told the FAZ in an interview in late summer. Biontech is already investigating the candidate in several clinical studies, including for the treatment of breast cancer, lung cancer and solid tumors. Until now, the Mainz company only had the rights outside of China, but now this lucrative market is being added.

Great potential for a new standard of care

In addition, BNT327 has the potential to set a new treatment standard in several oncological indications that goes beyond traditional checkpoint inhibitors, Şahin said on Wednesday. Checkpoint inhibitors are a form of immunotherapy that is already used in the treatment of cancer. If BNT327 makes it through to approval, Biontech could quickly penetrate the broad checkpoint inhibitor market, which, according to a company spokeswoman, has annual sales of $45 billion. An important drug there is the cancer drug Keytruda from the US company Merck & Co. – currently the top-selling drug in the world.

Having full control over the development of the antibody in combination with chemotherapy was therefore the central driver for the takeover of Biotheus, according to Mainz. Several pivotal studies in various solid tumor indications are scheduled to start this year and next year. In addition, further clinical studies are planned to evaluate the antibody in combination with other drug candidates from Biontech, such as the antibody-drug conjugate BNT325, which Biontech is developing together with the Chinese partner Duality Bio. This is another promising candidate in Biontech’s oncology kit, which is now well-stocked through acquisitions.

With the takeover, Biontech is also buying a stronger presence in China. So far, the Mainz company is only represented in Shanghai with a small office and a dozen employees. With the purchase of Biotheus, in addition to the previous partner’s product pipeline, a research and development center for clinical studies, a production facility for biological preparations and more than 300 experienced local employees will be added.