The Federal Republic of Germany will invest 300 million Euros in the biopharmaceutical company CureVac AG, a pioneer in the preclinical and clinical development of mRNA-based drugs.
The German Federal Minister for Economic Affairs and Energy, Peter Altmaier, and Dietmar Hopp, SAP co-founder and co-founder of the investment company dievini Hopp BioTech holding GmbH & Co. KG, announced it on Monday in a joint press release.
Details of the investment, which will be made by the Kreditanstalt für Wiederaufbau (KfW), have been laid out in a definitive draft agreement. The funds from the capital increase will be used by CureVac for the further development of the Company’s proprietary pipeline and mRNA platform technology and the expansion of business activities. Under the agreement, the KfW will hold a stake of around 23 percent in CureVac.
Federal Minister for Economic Affairs and Energy, Peter Altmaier, says: “CureVac’s technology has the potential to develop disruptive new vaccines and therapeutic modalities that are accessible for many people and available via the market. The German Federal government has decided to invest in this promising company because it expects that this will accelerate the development programs and provide the means for CureVac to harness the full potential of its technology. This is also of high importance for industrial policy as we in Germany and Europe need these essential research results and technologies. At the same time, today’s move is a first and important implementation of the comprehensive Corona Economic Stimulus and Future Technologies Package, which was agreed on by the Federal Government on 03 June 2020. With this package, we aim to secure more independence in the entire production process of medical substances and vaccines. This investment is a first step in this direction.”
Dietmar Hopp, main shareholder of CureVac AG, comments: “Since 2005, through my investment company dievini, I have been a very active supporter of the development of novel and innovative therapies and processes in German biotechnology. The coronavirus crisis has made the great relevance and significance of the biotechnology industry for patients, our society, and the world apparent. I am pleased that the importance of biotechnology is also recognized by the government and that this key industry now will receive support beyond early research. CureVac is just one of the early and outstanding examples of visionary entrepreneurial biotech innovation from Germany. The Company is a global leader in mRNA technology with great potential for vaccines – for example, against COVID-19, but also many other infectious diseases, as well as for novel therapeutic modalities in other indications. We at dievini were convinced early on of the immense potential CureVac’s mRNA technology holds for the future.”
Dr. Franz-Werner Haas, acting Chief Executive Officer and Chief Operating Officer of CureVac AG, adds: “We are very excited that, with the Federal Republic of Germany and dievini, we have such strong and reliable partners at our side. This strong financial commitment provides us further cash reach and stability for the accelerated development of our mRNA platform, the development and production of our current and additional mRNA vaccine and drug candidates, as well as the strategic expansion of our organization. At the same time we will retain full operational and strategic independence.“