BioNTech decides to close some production facilities and founders are stepping down
BioNTech will close its facilities in Germany and Singapore due to challenging market conditions, affecting 1,800 employees, while the founders will also leave their executive roles.
BioNTech has announced that it will close some production facilities in Germany and Singapore due to challenging market conditions and a drop in global demand. Alongside this process, which is expected to affect approximately 1,800 employees, the company's founders Uğur Şahin and Özlem Türeci announced that they will step down from their executive roles.
Facility Closure Schedule
No suitable buyers could be found for the facilities in the German federal states of Rhineland-Palatinate, Hesse, and Baden-Württemberg, as well as the Singapore-based production centers.
Within the scope of the closure decision, the Tübingen facility will cease operations by the end of 2027, the Marburg facility by early 2028, and the Idar-Oberstein facility by the end of 2028.
Employees and Subsidiaries
While approximately 1,800 employees are expected to be affected by the decision, an agreement was reached with the works council to ensure that layoffs are carried out in a socially responsible manner.
The JPT Peptide Technologies subsidiary in Berlin was exempted from the closure process as it was transferred by the Dubag Group.
CureVac Dispute
Tübingen, one of the facilities to be closed, was the former headquarters of CureVac, BioNTech's former rival which it had acquired.
CureVac founder Ingmar Hoerr accused BioNTech of deceiving them, claiming that agreements had not been honored.
Oncology-Focused Transformation
With the decline in demand for the COVID-19 vaccine, the company concentrated its resources on oncology, mRNA-based immunotherapies, and cancer drugs.
Due to high R&D costs and new products not yet having been introduced to the market, a net loss of 1.35 billion euros was reported for the first six months of the year.
Departure of the Founders and a New Era
Founders Uğur Şahin and Özlem Türeci are stepping down from their executive roles to establish a new Mainz-based biotechnology company named Arife.
Although the duo is stepping back from management, they will retain their shares and continue to provide scientific advisory services to the company.
New CEO Appointment
Guido Oelkers will take over the Chief Executive Officer seat being vacated by Uğur Şahin, effective no later than February 1, 2027.
The company plans to apply for marketing authorization for drug candidates in the field of cancer treatment by 2030.