The UK’s Competition and Markets Authority (CMA) is set to review a proposed £129 million subsidy for BioNTech.
- The subsidy is part of the Department for Science, Innovation and Technology’s (DSIT) plan to boost UK research and development.
- BioNTech aims to invest £1 billion in the UK, promising substantial contributions to job creation and R&D.
- The review will assess compliance with subsidy control requirements and aims to address market failures.
- BioNTech’s expansion could enhance UK capabilities in regenerative medicine, oncology, and AI-driven drug discovery.
The UK’s Competition and Markets Authority (CMA) has initiated a review of a proposed £129 million grant to BioNTech, as planned by the Department for Science, Innovation and Technology (DSIT). This evaluation will be conducted by the CMA’s Subsidy Advice Unit, which aims to complete its report within 30 working days. The investigation seeks to verify whether the subsidy complies with relevant subsidy control requirements.
The DSIT has justified the subsidy as essential for securing around £1 billion in inward investment by BioNTech. This investment is intended to support a significant expansion of BioNTech’s operations in the UK over the next decade, focusing on new research and development (R&D) and artificial intelligence (AI) activities. The initiative promises the creation of 460 jobs in the UK.
BioNTech’s project will concentrate on several key areas, including structural biology, regenerative medicine, oncology, and AI-driven drug discovery. In Cambridge, the company plans to establish a new centre of excellence aimed at developing cutting-edge treatments for cancer and other severe diseases. Meanwhile, in London, BioNTech intends to create a major hub focusing on AI, led by its subsidiary, InstaDeep.
The intended subsidy will be governed by a grant funding agreement, which will delineate the specific activities to be funded and the eligible expenditures. According to the DSIT, this project will address market failures that deter R&D investment and will support the achievement of three core government objectives outlined in the Life Sciences Plan: enhancing R&D in the UK’s life sciences sector, strengthening the nation’s health resilience, and contributing to economic growth.
The CMA’s review will determine the subsidy’s adherence to regulatory standards, reinforcing the strategic aim to fortify the UK’s life sciences sector.
