Biontech Pivots to Cancer Research with Major Job Cuts

German biotechnology company Biontech will close several production plants and cease Covid vaccine manufacturing in Germany later this year, cutting up to 1,860 jobs, or around 22% of its workforce. The move follows a significant drop in demand for Covid vaccines in Europe and the US after the end of the pandemic.

Vaccine production will be taken over entirely by US partner Pfizer, while Biontech redirects freed-up resources into cancer drug development. The plants in Idar-Oberstein, Marburg and Singapore, as well as operations acquired from Curevac, are due to close by the end of 2027.

The company expects annual savings of around €500m, equivalent to approximately $550m, from 2029 once the restructuring is complete. It plans to invest the proceeds in oncology research, with a key project being Pumitamig, an experimental drug for the treatment of breast and lung cancer.

The restructuring coincides with a leadership change. Founders Ugur Sahin and Özlem Türeci have announced they will leave the company by the end of the year to establish a new venture focused on next-generation mRNA technologies.

The planned layoffs have faced opposition from unions and employees, who are demanding greater transparency about the company's future direction.

(handelsblatt, bak)