German gov't to buy €300m stake in vaccine developer CureVac

The German government intends to invest 300 million euros in local biotechnology company CureVac, the country's Ministry of Economic Affairs and Energy announced here on Monday, reported Xinhua.

The investment aims to support the further development of the German company and its projects in the pipeline, according to a joint statement by CureVac and the ministry. CureVac is currently developing a coronavirus vaccine.

"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," said Minister of Economic Affairs and Energy Peter Altmaier.

The investment would be made via the German state-owned development bank (KfW), which would then hold a stake of around 23 percent in CureVac. The investment would not mean that the German government would influence CureVac's corporate policy decisions.

Dietmar Hopp, controlling shareholder of CureVac and co-founder of the investment company dievini Hopp BioTech holding, was pleased that "the importance of biotechnology is also recognized by the government and that this key industry will now receive support beyond early research."

In March, German media reported that U.S. President Donald Trump had attempted to lure scientists from CureVac to the United States with large financial contributions. However, CureVac rejected "allegations about offers for acquisition of the company or its technology."

According to Altmaier, the government's investment in CureVac is a "first and important implementation" of the comprehensive economic stimulus package that was presented two weeks ago.

The German stimulus package worth 130 billion euros to mitigate the economic effects of the COVID-19 pandemic includes a temporarily reduction of the value-added tax (VAT), a one-time 300-euro bonus per child as well as promotion of domestic production of key pharmaceuticals and medical equipment.

"With this package, we aim to secure more independence in the entire production process of medical substances and vaccines," stressed Altmaier, adding that the investment in CureVac was a first step in this direction.