German Vaccine Company CureVac Acquires 23% Stake for 300 Million Euros
Preemptively Blocks Exclusive Supply to the US...Urgent Stake Purchase
[Asia Economy Reporter Hyunwoo Lee] The German government has attracted international attention by announcing an emergency purchase of shares in its domestic vaccine company CureVac, which was rumored to be acquired by the United States. It is reported that they bought shares worth 300 million euros (approximately 410.5 billion KRW) out of concern that if acquired by the U.S., vaccines would be exclusively supplied to the U.S., making it impossible to supply them domestically. There are also forecasts that nationalization measures for major vaccine companies by various countries are expected in the future.
According to CNBC, on the 15th (local time), the German government announced it would purchase 23% of shares in CureVac, a domestic vaccine development company, for 300 million euros. Peter Altmaier, Germany’s Minister for Economic Affairs, said at a press conference, "We wanted to provide stable capital to CureVac," and explained, "From an industrial perspective, it is about maintaining and strengthening Germany’s core businesses." The German government explained that the investment in CureVac was made through funds from KfW, Germany’s state-owned development bank, and stated that even if CureVac is listed on Nasdaq in the future, it will not participate in management control.
CureVac is a German bio-venture company that started in 2000 from a research team at the University of T?bingen in Germany. It is known as a company that rapidly develops vaccines using messenger RNA (mRNA), similar to the U.S. company Moderna. Currently, it is rapidly developing a vaccine for COVID-19 and is undergoing clinical trials. Rumors circulated that the company would be acquired by a U.S. company ahead of its planned listing on the New York Stock Exchange next month, prompting Germany and the European Union (EU) to purchase shares.
In a letter outlining the share acquisition plan sent to CureVac, the German Ministry of Economic Affairs stated, "The government’s share acquisition is to prevent the company from being acquired by foreign investors and to ensure that CureVac does not leave Germany," adding, "If the company is acquired overseas or relocates its factories, there is concern that CureVac’s COVID-19 vaccine will not be distributed in Germany and European countries." The EU also urgently mobilized 80 million euros to purchase shares in CureVac, and Ursula von der Leyen, President of the European Commission, expressed hope that "CureVac will release a vaccine before autumn."
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