The UK’s competition regulator is to review a proposed £129m grant to be awarded to BioNTech by the UK’s Department for Science, Innovation and Technology (DSIT).
The Competition and Markets Authority (CMA) will prepare a report evaluating of the DSIT’s assessment of whether the award complies with the relevant subsidy control requirements.
The review is to be conducted by the CMA’s Subsidy Advice Unit which is set to complete its report within 30 working days.
According to DSIT, the subsidy is deemed necessary to secure an inward investment of approximately £1 billion by BioNTech to enable an ambitious expansion of its footprint in the UK, where the German biotech intends to carry out new R&D and AI activities over the next ten years and create 460 UK jobs.
BioNTech’s project would focus on structural biology, regenerative medicine, oncology, and AI-driven drug discovery. In Cambridge, BioNTech plans to set up a new centre of excellence focused on drug development of new treatments for cancer and other serious diseases, while in London, BioNTech intends to establish a major hub including a centre of expertise for AI led by its subsidiary, InstaDeep.
The proposed subsidy would be governed by a grant funding agreement which would set out clearly the funded activities and eligible expenditure.
“Supporting BioNTech’s proposed project, through this subsidy, would address market failures that disincentivise R&D investment and contribute to the delivery of three core government objectives set out in the government’s Life Sciences Plan: to boost R&D in the UK life sciences sector, strengthen UK health resilience and grow the UK economy,” DSIT said.
