A proposed £129m grant set to be awarded to BioNTech by the Department for Science, Innovation, and Technology (DSIT) is now being reviewed by the UK’s competition watchdog.

The Competition and Markets Authority (CMA) is tasked with evaluating if DSIT’s award complies with the relevant subsidy control requirements. The review will be conducted within 30 days by the CMA’s Subsidy Advice Unit.

The subsidy was deemed necessary by DSIT to secure the inward investment of about £1bn by BioNTech to enable its expansion in the UK.

With the funding, the company aims to carry out new activities in Research and Development (R&D) and AI over the next ten years, which should create about 460 new jobs.

BioNTech’s project would focus on structural biology, regenerative medicine, oncology, and AI-driven drug discovery.

The company also aims to set up a centre of excellence in Cambridge for drug developments, and a major hub in London centring on AI expertise.

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According to DSIT, supporting BioNTech would address market failures that disincentivise R&D investment and contribute to the delivery of the governments’ plans to boost the life sciences and strengthen UK health resilience, and grow the UK economy.

The subsidy would set out clearly the funded activities and eligible expenditure of the grant, the achievement of which would be closely monitored during delivery.