A proposed £129m grant to BioNTech sparks a review by the Competition and Markets Authority (CMA).
- The UK’s Department for Science, Innovation and Technology (DSIT) suggests the subsidy to encourage BioNTech’s £1 billion investment.
- BioNTech plans to create 460 jobs and enhance R&D and AI capabilities in the UK.
- Focus areas include oncology, regenerative medicine, and AI-driven drug discovery.
- London and Cambridge to host new BioNTech centres, promoting health resilience and economic growth.
The UK’s competition regulator, the Competition and Markets Authority (CMA), is set to review a proposed £129 million grant to be awarded to BioNTech. The review will be conducted by the CMA’s Subsidy Advice Unit, which aims to assess whether the Department for Science, Innovation and Technology’s (DSIT) award complies with the relevant subsidy control requirements. This evaluation is expected to be completed within 30 working days.
The DSIT has deemed this substantial subsidy as necessary to secure an inward investment of approximately £1 billion by BioNTech. This investment is anticipated to enable BioNTech to expand its operations significantly in the UK over the next decade. BioNTech has outlined an ambitious plan to develop new research and development (R&D) and AI activities, thereby creating an estimated 460 jobs within the country.
BioNTech’s project scope includes advancements in several critical fields such as structural biology, regenerative medicine, and oncology. Additionally, the use of artificial intelligence for drug discovery is a key component of their strategy. These initiatives not only aim to strengthen BioNTech’s footprint but also to enhance the UK’s role in these cutting-edge areas of scientific research.
In Cambridge, BioNTech plans to establish a new centre of excellence that will focus heavily on the development of new treatments for cancer and other serious diseases. Meanwhile, in London, BioNTech intends to create a major hub, which will include a centre of expertise for artificial intelligence, led by its subsidiary, InstaDeep.
The subsidy agreement will be clearly defined, detailing the funded activities and the criteria for eligible expenditure. According to the DSIT, supporting BioNTech’s proposed project through this subsidy could help address existing market failures that typically disincentivise R&D investment. It also aligns with three core government objectives outlined in the Life Sciences Plan: boosting R&D in the UK life sciences sector, strengthening the country’s health resilience, and fostering economic growth.
The CMA’s review of the proposed subsidy will ensure compliance with subsidy control requirements, while BioNTech’s investment is poised to advance the UK’s R&D landscape.
