BioNTech is Closing Some Facilities Due to Strategy Shift
Changing its production strategy due to falling demand for the COVID-19 vaccine, BioNTech announced that it will close some of its facilities in Germany and Singapore.
German biotechnology company BioNTech has decided to close some of its factories in Germany and Singapore due to decreased demand for the COVID-19 vaccine and changing market conditions. In the process, which will affect approximately 1,800 employees, founders Uğur Şahin and Özlem Türeci will step down from their administrative roles.
Germany and Singapore Facilities Being Closed
German biotechnology company BioNTech announced that it will close its factories in Germany and Singapore in line with new production strategies for the post-pandemic period.
In the statement made by the company, it was noted that no suitable buyer could be found for the production centers in Idar-Oberstein, Marburg, Tübingen, and Singapore.
Closure Schedule and Employee Status
Due to challenging market conditions, the Tübingen facility is planned to cease operations at the end of 2027, while the Marburg and Idar-Oberstein facilities are planned to cease operations at the end of 2028.
An agreement has been reached with the works council to ensure that layoffs for approximately 1,800 employees affected by the decision are handled in a socially responsible manner.
CureVac Acquisition and Reactions
Tübingen, which is among the facilities to be closed, was the headquarters of CureVac, BioNTech's former rival that it had incorporated.
CureVac founder Ingmar Hoerr reacted to BioNTech, arguing that the agreement was not honored, and accused them of deception.
Financial Situation and Shift in Focus
Initiating a transformation process as global vaccine demand declined, BioNTech decided to redirect its resources to oncology and mRNA-based immunotherapies.
Due to high R&D costs and the new product not yet being on the market, the company reported a net loss of 1.35 billion euros in the first six months of the year.
Departure of Founders and New Era
BioNTech founders Uğur Şahin and Özlem Türeci will step down from their active administrative duties to establish a new Mainz-based company named Arife.
Guido Oelkers will take over the CEO seat left vacant by Şahin by February 1, 2027, at the latest, while the founders will continue to provide scientific consultancy to the company.