On Wednesday, BioNTech SE ( BNTX ) agreed to acquire Biotheus, a clinical-stage biotechnology company focused on discovering and developing antibodies for oncological or inflammatory diseases.

With the acquisition, BioNTech will obtain full global rights to the late-stage clinical asset BNT327/PM8002, an investigational bispecific antibody targeting PD-L1 and VEGF-A.

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BioNTech will pay Biotheus an upfront consideration of $800 million, predominantly in cash, with a small portion in American depositary shares, plus additional performance-based contingent payments of up to $150 million if certain milestones are met.

The transaction is expected to close in the first quarter of 2025.

The acquisition follows an initial exclusive global license and collaboration agreement between BioNTech and Biotheus, which closed in November 2023.

The agreement granted BioNTech the rights to develop, manufacture, and commercialize BNT327/PM8002 globally ex-Greater China.

The transaction is part of BioNTech’s oncology strategy, which aims to enhance the company’s capabilities to research, develop, and commercialize combination therapies using BNT327/PM8002.

“The acquisition of Biotheus builds on our successful ongoing collaboration on BNT327/PM8002 and other investigational bispecific antibodies,” said Ugur Sahin, CEO and co-founder of BioNTech.

“We believe that BNT327/PM8002 has the potential to set a new standard of care in multiple oncology indications, surpassing traditional checkpoint inhibitors,” Sahin added.

BNT327/PM8002 has shown encouraging efficacy and tolerability in patients across various tumor types, with more than 700 patients treated in clinical trials to date.

Multiple registrational trials are planned to start in 2024 and 2025, evaluating BNT327/PM8002 plus chemotherapy in various solid tumor indications, including in patients with small, non-small, and triple-negative breast cancer.

Additional trials will explore combining BNT327/PM8002 and BioNTech’s proprietary antibody-drug conjugates.

Upon closing, BioNTech will gain full rights to Biotheus’ pipeline candidates and its in-house bispecific antibody-drug conjugate capability.

The acquisition will expand BioNTech’s footprint in China, adding a local research and development hub to conduct clinical trials.

Last week, BioNTech reported third-quarter revenues of 1.244 billion euros (or $1.36 billion), up from 895.3 million euros a year ago.

The higher revenues in the third quarter were largely attributed to the earlier approvals received for its variant-adapted COVID-19 vaccines compared to last year.

Price Action: BNTX stock is up 5.87% at $112.57 at the last check on Wednesday.

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