Cure for cancer the next target for Pfizer-BioNTech COVID-19 vaccine inventor Ugur Sahin

Ugur Sahin, the co-founder and CEO of BioNTech, with Arab News's Frank Kane on Frankly Speaking. (AN photo)
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Updated 08 March 2021
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Cure for cancer the next target for Pfizer-BioNTech COVID-19 vaccine inventor Ugur Sahin

  • Turkish-German scientist and entrepreneur envisions use of techniques developed for COVID-19 fight in successful cancer treatment
  • Sahin says a new vaccine version would be more easily transportable and more effective against new COVID-19 variants

DUBAI: The man who invented the first vaccine against the deadly coronavirus is prioritizing a cure for cancer as his post-pandemic target.

Ugur Sahin, the co-founder and chief executive of BioNTech, the firm which developed the earliest authorized vaccine in partnership with Pfizer, told Arab News that successful cancer treatment, using similar techniques he developed in the fight against COVID-19, was his next goal.

Sahin, who developed the vaccine along with his wife Ozlem Tureci, who is BioNTech’s chief medical officer, was appearing in the latest episode of Frankly Speaking, the series of video interviews with leading global policy-makers and business people.

“Definitely. The success now with our COVID-19 vaccine is of course transformative for the company, and we see that as a great opportunity,” he said

 

Sahin also spoke of the “next generation” of COVID vaccine his company is developing, the need for a fairer system of global distribution of the existing vaccine, and the possibility that the Pfizer-BioNTech vaccine could be manufactured in the Middle East.

BioNTech began life as a company focused on using revolutionary mRNA technology to develop new medical weapons in the fight against cancer, and Sahin said that was his next goal once the pandemic had been defeated. The success of the COVID-19 vaccine has proved a vindication of his methods, and given BioNTech the financial resources to pursue the cancer treatment.

“We see that as a great opportunity, and also an obligation to think in an even bigger fashion about our vision, and how we could accelerate our cancer program and make it more available,” he said.

Sahin, who is the son of Turkish immigrants to Germany, where BioNTech is based, revealed that a new version of the COVID-19 vaccine could be ready soon, one that is more easily transportable and which could deal more effectively with the more deadly variants of the disease that are appearing in different parts of the world.

“We started to manufacture our vaccine and it came at the beginning with a challenge. We have a vaccine which has to be kept at minus 70 degrees. It’s not yet suitable for supply to all regions on the planet,” he said.

“But we are working on better conditions. We have, most recently, published that we can also start at minus 20 and we will continue to work on that and our aim is really to make our vaccine available — 2 billion doses and maybe even more in 2021 — including not only developed countries but also developing countries.” 

 

The “next generation” of the vaccine could be stored and transported at temperatures as high as minus 2 to minus 8 degrees, he said.

Sahin said that the existing vaccine was also expected to be effective against the South African variant of the virus, which is more transmissible and leads to higher fatality rates, but he added that there was still more testing to be done and data analyzed on the new variants.

Distributing the vaccine more fairly is a challenge, he admitted. “Fairness is always a question of logistics and also accessibility. Our goal when we started to develop this vaccine — and this is in the center of our hearts — is to make our vaccine available worldwide to everyone who needs it,” he said.

He also believes that a more innovative and entrepreneurial approach is needed to solve the problems of distribution of the vaccine to poorer parts of the world.

“We should really ask the question: How can we work together to make that possible?” Sahin said. “That's for some of the future goals, to really understand what are the limitations. For example, for the vaccine supply now, I really want to understand what is the limitation to make our vaccine available to people everywhere,” he said.

One of the key questions in the minds of economic and medical policymakers is when the increasing level of vaccination will begin to bring economic life back to normal after the damaging lockdowns of the past year. “it indeed depends on the rollout. We have this magic number of about 60 to 70 percent of people being vaccinated to start to see a herd immunity, but we are already starting to see the first effects of the vaccinations, with countries starting to vaccinate elderly people.

 

“So the first effect is that the hospitalizations are dropping in the vaccinated people and that's the first very important aspect — to get the reduction of hospitalization and mortality, and later on get also a better control of infections,” Sahin said.

On the problem of persuading people reluctant to have the vaccine, he said: “We have to continue to communicate the benefits we are seeing. This could help convince people.”

BioNTech partnered with US pharmaceuticals group Pfizer when the potential of its vaccine was in the early stages, optimizing the Americans’ global network for clinical trials, supply and regulatory know-how.

“So, we combined our skills and we are working together, driven by science. At the end of the day, we all want to accomplish the same: We want to develop the vaccine as soon as possible, we want to produce as much as possible, and of course we want to have a safe and effective vaccine,” he said.

Outside the US, the vaccine is manufactured at BioNTech facilities in Europe and transported internationally. A new facility in the German town of Marburg is being prepared to manufacture the vaccine in greater numbers, but Sahin explained the long and complex work required in setting up facilities overseas.

 

“It will take us about eight months until we will get out the first vaccines from Marburg. So, this is really the minimal time that would be required. It does not help in the early phase of the pandemic to set up new factories somewhere else. Every factory that we are now starting to consider will help us only in mid-2022,” he said.

The vaccine has been authorized and delivered early in Saudi Arabia and other parts of the Middle East, and two countries in the region — Israel and the UAE — top the world tables for the highest proportion of their populations already vaccinated.

Sahin said that the region could be the location of future manufacturing facilities, for the COVID-19 vaccine or for other, potentially more devastating viruses.

“What this pandemic taught us is very clear. It was somehow expected by experts, since more than 20 years, that this could happen. It happened and we were not well prepared, the world was not well prepared. This is a bad pandemic, but it's not the worst possible pandemic,” he said.

 

Sahin declined to comment on the qualities of rival vaccines available. “This is not a race. If it is a race, it’s against the virus, and I'm really happy about that,” he said.

“I had predicted that we will need multiple vaccine developers to participate and to ensure that everyone on the planet is able to get a vaccine, and this is happening.

“It is wonderful to see that all kinds of international collaborations have come up not only with one vaccine, but there are multiple vaccines.”

Sahin and Ozlem, who were named “People of the Year 2020” for their breakthrough in developing the first authorized vaccine, also joined the ranks of the world’s billionaires as the value of the company soared on news of the vaccine.

The founders of BioNTech have strong views on the value of philanthropy in the fight against life-threatening diseases, as rich and successful entrepreneurs increasingly donate a large proportion of their wealth to medical research.

“It is extremely important. We have to understand everyone can do something, and the way we would like to position our company is to become a useful company with a philanthropic vision. At the end of the day the question is: How can we ensure that the things we do are done for the benefit of humanity,” Sahin said.

“I don't see a clear reason why, for example, people living in Africa should not benefit from modern cancer treatments.”

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Twitter: @frankkanedubai


Saudi corporate lending fuels bank loans growth to near-2 year high of 12.46%

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Saudi corporate lending fuels bank loans growth to near-2 year high of 12.46%

RIYADH: Saudi Arabia’s bank loans reached SR2.88 trillion ($768.93 billion) in October, a 12.46 percent annual growth and the highest in 20 months, official data showed.

According to figures from the Saudi Central Bank, also known as SAMA, this growth reflects strong corporate and personal lending trends, driven by the Kingdom’s expanding economic activities.

Corporate loans were the main driver, surging 15.77 percent to SR1.54 trillion. This increase highlights the significant contribution of the real estate, wholesale, retail, and manufacturing sectors to the Kingdom’s economic dynamism.

Real estate activities led the charge, representing 20.29 percent of corporate lending and growing by 27.37 percent to SR312.4 billion.

Wholesale and retail trade accounted for 13 percent of corporate lending, reaching SR200.63 billion with an annual growth rate of 9.06 percent. 

The manufacturing sector, a key component of Vision 2030’s economic diversification goals, represented 11.68 percent of lending at SR180.05 billion.

Meanwhile, electricity, gas, and water supplies contributed 11.32 percent to the total, growing significantly by nearly 30 percent to reach SR174.57 billion.

Notably, professional, scientific, and technical activities, though holding a smaller 0.54 percent share of corporate credit, witnessed the most significant surge, with a 53.55 percent growth rate to SR8.27 billion.

On the personal loans side, which includes various financing options for individuals, the sector grew 8.89 percent annually to SR1.34 trillion. This expansion underscores the continued confidence in consumer lending and the Kingdom’s economic diversification strategies.

In October, Saudi banks’ loans-to-deposits ratio also increased to 80.73 percent, up from 79.69 percent in the same month of 2023, as per data from the SAMA.

The calculation includes loans minus provisions and commissions, providing a clearer view of actual lending capacity.

SAMA has set a regulatory limit of 90 percent for loans-to-deposits ratios, balancing banks’ lending capacity with liquidity stability while supporting economic growth through corporate and individual borrowing.

Compared to other GCC nations, such as the UAE where loans-to-deposits ratios can exceed 100 percent, SAMA’s cap reflects a more cautious approach, prioritizing liquidity stability in the banking sector.

Saudi Arabia’s corporate and real estate lending are experiencing unprecedented growth, fueled by a combination of favorable economic conditions, government initiatives, and strategic investments under Vision 2030.

As the Kingdom accelerates its transformation, the demand for financing across key sectors, particularly real estate, has surged, reflecting its rapid urbanization and infrastructure development. 

The Saudi Central Bank’s decision to mirror the US Federal Reserve’s policies, reducing interest rates by 50 basis points in September and an additional 25 basis points in November, has created an attractive borrowing environment.

This rate adjustment is anticipated to further boost real estate lending, allowing developers and individuals to capitalize on lower financing costs.

Real estate development remains central to Saudi Arabia’s economic diversification goals. Under Vision 2030, initiatives to position Riyadh as a global business hub and the Regional Headquarters Program have significantly increased demand for commercial real estate.

These efforts are complemented by giga-projects like NEOM and Red Sea Global, which are redefining urban landscapes with sustainable and energy-efficient designs.

The Public Investment Fund’s commitment to green building practices, with over $19.4 billion allocated to eligible green projects, underscores the alignment between real estate growth and environmental sustainability.

In October, PIF highlighted its green bond investments, including $6.3 billion earmarked for green building projects. These investments aim to set new standards in energy efficiency, saving up to 20 percent of energy compared to conventional buildings and avoiding thousands of tons of carbon emissions annually.

Projects such as NEOM’s sustainable water infrastructure further illustrate how the Kingdom is integrating advanced sustainability measures into its development agenda.

Wholesale and retail market

The growing share of wholesale and retail trade lending by Saudi banks reflects the sector’s pivotal role in the Kingdom’s economic evolution. 

This expansion is underpinned by a combination of government incentives, private sector dynamism, and increased consumer demand.

The Saudi government has actively encouraged the growth of this sector through measures like tax exemptions, financing initiatives, and technology transfer programs.

These policies have created a fertile ground for local entrepreneurs and attracted foreign companies eager to capitalize on Saudi Arabia’s business-friendly environment.

Consumer demand is a key driver, with rising interest in diverse products such as electronics, apparel, and food items.

The emergence of e-commerce platforms has further revolutionized the sector, enabling online retailers to reach broader audiences with ease, thereby increasing market participation.

According to data from 6Wresearch, such initiatives have heightened competition, lowered prices, and benefited both consumers and traders, adding to the sector’s momentum.

The sector’s importance is also evident in employment trends. 

According to a report by DataSaudi, the wholesale and retail trade sector employed over 1.64 million people in the second quarter of 2024, making it one of the largest employers in the Kingdom, alongside construction and manufacturing.

This employment surge highlights the sector’s contribution to economic stability and growth.

However, challenges persist. Intense competition, pricing pressures, and the entry of international brands partnering with local retailers are sparking pricing wars that could erode profit margins for some players, according to 6Wresearch.

Despite these hurdles, ongoing government support and initiatives like Vision 2030 promise to create new investment opportunities, reinforcing the wholesale and retail trade sector as a cornerstone of Saudi Arabia’s economic future.


Almoosa Health’s IPO to drive expansion and innovation in Saudi healthcare: CEO 

Updated 41 min 24 sec ago
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Almoosa Health’s IPO to drive expansion and innovation in Saudi healthcare: CEO 

RIYADH: Almoosa Health Co.’s upcoming initial public offering is poised to drive significant growth and innovation in Saudi Arabia’s healthcare sector, said the company’s CEO. 

In an interview with Arab News, Malek Almoosa emphasized that the IPO will attract capital for expansion and advanced technologies, enabling the company to strengthen its market position and broaden its services. 

The CEO said Almoosa Health is well-positioned to capitalize on Saudi Arabia’s rapidly evolving health care sector, which is expected to grow at a 6.5 percent compound annual growth rate to reach SR360 billion ($95.83 billion) by 2030. 

“The Kingdom’s health care infrastructure and utilization are still maturing and continue to lag global benchmarks, offering plenty of headroom for growth and investment in the sector,” he said. 

The company plans to issue 13.3 million shares, including 9.3 million new offerings and 4 million existing shares. This will represent 30 percent of the company’s post-IPO capital. 

“Our IPO plays an important role in attracting capital for investment in expansion and cutting-edge technology that will grow our footprint and our offering,” said Almoosa. 

The public listing, a partly primary offering, is relatively rare in the Saudi market. It not only positions the company to reduce its leverage and enhance financial flexibility but also extend its regional reach. 

“With a public listing, we also enhance our market positioning, attracting more business partnerships and broadening our patient demographic, and facilitating geographic expansion in the Eastern Province, where we are the leading health care provider,” he said. 

Almoosa Health has already secured strong investor interest, with cornerstone commitments from Tawuniya and Al Fozan Holding Co., subscribing to 4.1 percent and 2.5 percent, respectively, of the company’s post-offering capital. 

Listing on Tadawul 

The company said its decision to list on Tadawul aligns with its foundation and strategic direction. “We are, through and through, a Saudi organization that has grown with the Kingdom, and we wouldn’t have considered listing on any other financial market,” Almoosa said. 

By becoming part of the region’s largest and most liquid stock exchange, the company aims to enhance its capital-raising capabilities, visibility, and credibility. 

“Our decision to list on the Saudi Exchange reflects our strategic direction to harness local market insights, access a broad investor base, and continue to align with the Kingdom’s Vision 2030 health care objectives,” said Almoosa. 

Malek Almoosa. Supplied

Expanding capacity 

The CEO stated that funds raised would primarily support Almoosa Health’s expansion strategy, adding: “We have a clear growth strategy, planning to add around 700 beds by 2028, resulting in four hospitals with 1,430 beds and five primary care centers.” 

He explained that proceeds from 21 percent of the 30 percent offering would go to the company to finance expansion plans, covering capital expenditures, working capital, general corporate purposes, and partial debt repayment, while the remaining 9 percent would go to the selling shareholder. 

The company plans to open two major hospitals: Almoosa Specialist Hospital in Al Hofuf by 2027, with 300 beds and 200 clinics, and another in Al Khobar by 2028, featuring up to 400 beds and several centers of excellence. 

“We have already acquired the land and commenced excavation work for both,” Almoosa revealed. 

In addition, five primary care centers are planned in Al Ahsa, Al Khobar, and Dammam between 2025 and 2027. 

The CEO noted that this expansion aligns with the company’s vision of becoming a “trusted provider of world-class health care” in Saudi Arabia’s Eastern Province. 

“Our ambitious expansion plan is designed to make that vision a reality, growing our footprint, widening our offering, and investing in the best technology in the market.” 

Eastern Province, where Almoosa operates, is emerging as a hub for energy and petrochemical industries, driving demand for health care services. 

With a capacity of 730 beds and services spanning primary, acute, and rehabilitative care, Almoosa serves nearly 1 million patients annually. The company’s integrated care model includes pharmacy, home health care, and telemedicine.

Almoosa acknowledged challenges in the sector, including talent shortages. “In a region where world-class practitioners are hard to come by, we educate, develop, and retain the most talented professionals,” he said, emphasizing the company’s focus on patient experience and competitive advantage. 

Technology adoption 

Almoosa pointed out that technology is at the core of the company’s strategy to enhance patient care and operational efficiency. 

Its specialist hospital in Al Ahsa integrates advanced health IT systems to enhance patient care and operational efficiency. He revealed that innovations such as Tesla 3 MRI for high-resolution imaging and automated systems in laboratories and pharmacies underscore its commitment to cutting-edge solutions. 

“We’ve been recognized for our advanced use of health IT, with HIMSS Stage 7 Accreditation reflecting exceptionally high levels of technology adoption,” said Almoosa. 

With its IPO, Almoosa Health aims to play a pivotal role in shaping the healthcare landscape of Eastern Province and beyond, meeting the growing demand for high-quality, integrated services.


Moody’s upgrades rankings for 11 Saudi banks

Updated 29 November 2024
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Moody’s upgrades rankings for 11 Saudi banks

RIYADH: Eleven banks in Saudi Arabia have seen their long-term deposit and senior unsecured ratings upgraded by Moody’s thanks to a strong operating environment.

The ratings agency also attributed the decision – which affects institutions including Saudi National Bank, Al Rajhi Bank, Riyad Bank – to the higher capacity of the Kingdom’s government to support the banks in case of need.

Earlier in November, Moody’s changed the issuer rating of the Saudi government from Aa3 from A1 and its outlook to stable from positive.

Other banks to be affected by the latest change include Saudi Awwal Bank, Banque Saudi Fransi, and Alinma Bank, as well as Arab National Bank, Bank AlBilad, and the Saudi Investment Bank.

Bank AlJazira and Gulf International Bank — Saudi Arabia also saw changes.

The agency also changed the outlook to stable from positive on the long-term deposit ratings of all the banks except for Al Rajhi Bank, which already held that rating.

“Credit conditions for banks in Saudi Arabia are improving as economic diversification momentum remains robust,” said Moody’s in a press release, adding: “We expect non-hydrocarbon private sector GDP to continue expanding by about 4-5 percent in the coming years – among the highest in the Gulf Cooperation Council region and an indication of continued progress in diversification that will reduce the Kingdom’s exposure to oil market developments and long-term carbon transition over time.”

The agency also announced it had upgraded the Baseline Credit Assessments of Saudi National Bank, Saudi Awwal Bank, and Gulf International Bank — Saudi Arabia, and affirmed the BCAs of the remaining eight banks.

The continued increase in employment in the Kingdom, including the growing participation of women in the workforce, will support demand for banking services, according to Moody’s.

“In this context, we expect credit growth in the banking system to remain robust, particularly to high quality borrowers related to the execution of the giga-projects, which will in turn support asset quality and profitability for all banks across the system, albeit to varying degrees,” said the report.

When it came to the likelihood of government support, Moody’s changed its assessment to “very high” from “high” for Alinma Bank, Bank AlBilad, the Saudi Investment Bank and Bank AlJazira.

The report said this shift “reflects the vital role the banking system plays in supporting the diversification agenda.”

It added: “The government’s economic diversification plan continues to progress and will, over time, further reduce Saudi Arabia’s exposure to oil market developments. Additionally, the stability and resiliency of the banking system support investor confidence, private domestic or foreign investment which is critical to government’s diversification plan and in our view increases the likelihood for government support in case needed.”

In its analysis of Saudi National Bank – the largest such institution across the GCC region – Moody’s said its balance sheet is well diversified across retail, corporate and treasury and underpins its strong and improving asset quality with nonperforming loans to gross loans at 1.6 percent as of September.

“The bank’s liquid buffers remain healthy and sufficient to moderate concentration risk on government deposits which is a common feature for all banks in Saudi,” the report added.

Regarding the decision to affirm Al Rajhi Bank’s BCA at a3, Moody’s said this “reflects the bank’s dominant domestic Islamic retail franchise and our expectation that the improved operating conditions will support in maintaining the bank’s financial performance.”


Oil Updates – prices set to end week over 3% lower as supply risks ease

Updated 29 November 2024
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Oil Updates – prices set to end week over 3% lower as supply risks ease

LONDON: Oil prices fell on Friday, heading for a weekly drop of more than 3 percent, as concerns over supply risks from the Israel-Hezbollah conflict eased, alleviating earlier disruption fears.

Brent crude futures fell 55 cents, or 0.8 percent, to $72.73 a barrel by 10:58 a.m. Saudi time. US West Texas Intermediate crude futures were at $69.52, down 20 cents, or 0.3 percent, compared with Wednesday’s closing price.

On a weekly basis, Brent futures were down 3.3 percent and the US WTI benchmark was trading 3.8 percent lower.

Israel and Lebanese armed group Hezbollah traded accusations on Thursday over alleged violations of their ceasefire that came into effect the day before. The deal had at first appeared to alleviate the potential for supply disruption from a broader conflict that had led to a risk premium for oil.

Oil supplies from the Middle East, though, have been largely unaffected during Israel’s parallel conflicts with Hezbollah in Lebanon and Hamas in Gaza.

OPEC+, the Organization of the Petroleum Exporting Countries and allies including Russia, delayed its next policy meeting to Dec. 5 from Dec. 1 to avoid a scheduling conflict. OPEC+ is expected to further extend its production cuts at the meeting.

BMI, a unit of Fitch Solutions, downgraded its Brent price forecast on Friday to $76/bbl in 2025 from $78/bbl previously, citing a “bearish fundamental outlook, ongoing weakness in oil market sentiment and the downside pressure on prices we expect to accrue under Trump.”

“Although we expect the OPEC+ group will opt to roll-over the existing cuts into the new year, this will not be sufficient to fully erase the production glut we forecast for next year,” BMI analysts said in a note.

Also on Thursday, Russia struck Ukrainian energy facilities for the second time this month. ANZ analysts said the attack risked retaliation that could affect Russian oil supply.

Iran told a UN nuclear watchdog it would install more than 6,000 additional uranium-enriching centrifuges at its enrichment plants, a confidential report by the watchdog said on Thursday.

Analysts at Goldman Sachs have said Iranian supply could drop by as much as 1 million barrels per day in the first half of next year if Western powers tighten sanctions enforcement on its crude oil output.


Closing Bell: Saudi main index rises to close at 11,641 

Updated 28 November 2024
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Closing Bell: Saudi main index rises to close at 11,641 

RIYADH: Saudi Arabia’s Tadawul All Share Index gained 50.52 points, or 0.44 percent, closing at 11,641.31 on Thursday. 

The total trading turnover of the benchmark index was SR6.02 billion ($1.60 billion), with 134 stocks advancing and 85 retreating.  

Similarly, the Kingdom’s parallel market Nomu rose 229.98 points, or 0.76 percent, to close at 30,394.70. Of the listed stocks, 44 advanced while 38 retreated. 

The MSCI Tadawul Index increased by 8.37 points, or 0.58 percent, to close at 1,460.35.  

The best-performing stock of the day was Tamkeen Human Resource Co., whose share price surged 18.00 percent to SR76.70. 

Other top performers included Zamil Industrial Investment Co., whose share price rose 8.70 percent to SR29.35, and Dr. Soliman Abdel Kader Fakeeh Hospital Co., whose stock price increased 5.66 percent to SR63.50.  

Saudi Cable Co. recorded the biggest drop, falling 6.93 percent to SR84.60. 

Saudi Enaya Cooperative Insurance Co. also saw its share price fall 4.25 percent to SR13.08. 

Meanwhile, Saudi Automotive Services Co. saw its stock price drop 4.23 percent to SR68.00. 

On the announcements front, Saudi Telecom Co. revealed that it had received foreign investment authorization from the Spanish Council of Ministers, allowing it to increase its voting rights from 4.97 percent to 9.97 percent and gain the right to appoint a board member at Telefonica. 

According to a Tadawul statement, the change in stc ownership from 9.9 percent in the previous announcement to 9.97 percent reflects Telefonica’s cancellation of shares in April. stc is currently completing the necessary steps to finalize the increase in its voting rights, which is expected to be completed in the coming period. 

stc ended the session at SR39.95, with no change in its share price.  

Nofoth Food Products Co. announced the acquisition of a mixed-use commercial and residential land in Riyadh’s Hittin neighborhood for SR22 million, covering 1,580.37 sq. meters. This acquisition is part of the company’s strategic plan to expand operations with new commercial offices and develop its headquarters. 

According to a bourse filing, the deal will be financed through the company’s internal resources. The land acquisition will increase the firm’s fixed assets and positively impact financial ratios such as return on assets.  

Nofoth Food Products Co. ended the session at SR18.00, down 1.69 percent.