BioNTech SE – ADR (NASDAQ: BNTX), the company focused on patient-specific immunotherapies for the treatment of cancer and infectious diseases, stock rose 5.91% on 29th June, 2020 but slightly fell over 1.3% on 30th June, 2020 (as of 9:56 am GMT-4; Source: Google finance). The company announced to raise USD 250 million (EUR 223 million) through private investment by Temasek (Singapore’s state investor) and other accredited investors. The private placement will include an investment of about USD 139 million in ordinary shares and a USD 112 million investment in 4-year mandatory convertible notes. After closing of the issue, private placement investors will receive 2,595,996 ordinary shares in BioNTech, which will be subject to a 180-day lock-up agreement. The 4-year mandatory convertible notes will come with a coupon of 4.5% per annum and a conversion premium of 20% above the reference price. The investment is anticipated to close in early- to mid-August, subject to customary closing conditions.
Meanwhile, BioNTech is working on a coronavirus vaccine based on its mRNA technology platform. Pfizer has thrown its capital, reputation, and institutional knowledge behind the effort and the development-stage biopharma, which has catapulted the German company into the global spotlight. Both of them expects to obtain emergency use authorization for a COVID-19 vaccine as early as October, and projects to be able to produce hundreds of millions of doses in 2020 and a billion doses in 2021.
Pfizer Inc. and BioNTech SE have partnered for the development of BNT162, which id an mRNA-based vaccine. The data from the Phase III trial of the candidate, which will be done mainly in the U.S is expected to convince the people that that the vaccine is safe and efficacious in the September time frame. The company then then plans to discuss with the FDA and get the approval in the October.
BNTX is optimistic on the back of in part on preclinical and clinical data that Pfizer is expected to soon publish in a peer-reviewed journal. The two companies are establishing separate manufacturing capacity in the U.S. and Europe that will be dedicated to serving each market. He also noted the humanitarian need to supply other parts of the world.
Meantime, Pfizer has decided not to seek U.S. government funding because reporting obligations associated with government financing would slow the company’s development of a COVID-19 vaccine. BioNTech, however, has already negotiated a €100 million debt financing from the European Investment Bank to develop and scale up European manufacturing of BNT162.