The UK’s Competition and Markets Authority (CMA) is reviewing a substantial £129m grant intended for BioNTech by the Department for Science, Innovation and Technology (DSIT).
- The CMA’s Subsidy Advice Unit is tasked with evaluating whether the grant complies with subsidy control requirements within 30 working days.
- DSIT believes the subsidy is crucial for securing BioNTech’s £1 billion inward investment, aimed at expanding its UK R&D and AI activities.
- BioNTech plans to establish centres for structural biology, regenerative medicine, and AI-driven drug discovery in the UK.
- The subsidy aligns with government goals to boost R&D, enhance health resilience, and drive economic growth.
The UK’s Competition and Markets Authority (CMA) has initiated a review of a proposed £129 million grant from the Department for Science, Innovation and Technology (DSIT) to BioNTech. This thorough evaluation aims to determine the grant’s compliance with existing subsidy control requirements. The review is being handled by the CMA’s Subsidy Advice Unit, with the expectation that a comprehensive report will be finalised within 30 working days.
According to DSIT, the allocation of this significant subsidy is deemed necessary to secure an inward investment estimated at approximately £1 billion by the German biotechnology firm BioNTech. This investment is expected to significantly expand BioNTech’s operational footprint in the UK over the next decade. The company’s plans include the creation of 460 jobs and the pursuit of pioneering R&D and AI initiatives.
BioNTech’s expansion strategy in the UK focuses on establishing new centres of excellence dedicated to cutting-edge research. In Cambridge, intentions have been announced to develop a centre specialising in drug development for cancer and other serious diseases. In London, BioNTech plans to inaugurate a major hub featuring a centre of expertise in artificial intelligence, spearheaded by its subsidiary, InstaDeep.
The proposed grant would be regulated through a funding agreement meticulously outlining the financed activities and eligible expenses. DSIT has articulated that supporting BioNTech’s project through this subsidy will address critical market deficiencies that currently deter R&D investments. The initiative is anticipated to support three fundamental government objectives articulated in the Life Sciences Plan: bolstering R&D in the UK life sciences sector, fortifying national health resilience, and contributing to economic expansion.
The CMA’s evaluation will critically determine the appropriateness of DSIT’s substantial investment in BioNTech’s ambitious UK expansion.
