BioNTech buys GMP site to expand COVID-19 vaccine capacity

German biotech BioNTech (Nasdaq: BNTX) has signed a share purchase agreement with Novartis (NOVN: VX) to acquire the Swiss pharma giant’s good manufacturing practices (GMP) certified manufacturing facility in Marburg, Germany.

The manufacturing site will expand BioNTech’s COVID-19 vaccine production capacity by up to 750 million doses per year, or over 60 million doses per month, once fully operational. The transaction, the value of which is not disclosed, is expected to close in the fourth quarter of 2020. The company plans to be able to produce up to 250 million doses of BNT162b2 in the first half of 2021, thanks to the established team and well-established drug substance and drug product manufacturing capabilities at the site.

The vaccine candidate is being developed with Pfizer (NYSE: PFE) and is among only nine candidates to have entered a Phase III trial. Last week, BioNTech said it was negotiating a contract to supply the European Union with at least 200 million doses, starting at the end of 2020. BioNTech also announced it has received 375 million euros ($445 million) from the German government that can be used to upgrade the Marburg facilities.