Corona virus and state intervention in the market

the connection between these factors

Fri, 2020 / 06 / 19

German government to invest in the Tübingen-based biotech company Curevac

Surprisingly, it was announced yesterday that the German government intends to invest 300 million euros directly in the Tübingen-based biotech company Curevac. The aim of this industrial policy measure is to participate in the development of a vaccine against the Covid-19 virus and, in general, to regain more independence in the field of vaccine development.

The German government will acquire approx. 23% of the company in the course of a capital increase. The largest shareholder to date is Dietmar Hopp, SAP founder, with his biotech investment company dievini.

This first measure by the German government marks a turnaround in industrial policy in the field of drug research, as it shows the increased importance the government is giving to the biotech sector. In addition to this entry, it was already announced on Saturday that the Swedish pharmaceutical company Astra-Zeneca had agreed a deal with Germany, France, Italy and the Netherlands to provide 400 million doses of a new vaccine. If direct state involvement was dispensed with for a long time in this sector, these two examples show a departure from this path. If further measures of this kind were to be implemented, major upheavals could follow, involving further state involvement and such high levels of investment.

As a management consultancy focused on the strategy within the framework of the market approval of new active ingredients and innovative drugs, SKC is located at the interface between the pharmaceutical and biotech industry on the one hand and public institutions or the state on the other. We know both players due to many years of experience and know how to assess these and future developments.

German Sources:

Author: Sebastian Marben, M. Sc.