German biotech firm BioNTech has agreed to acquire domestic peer CureVac for about $1.25 billion worth of BioNTech shares, it said on Thursday, to boost its work on new mRNA-based cancer treatments.

BioNTech is acquiring CureVac in a deal that brings messenger RNA manufacturing capability and cancer immunotherapy candidates. Analysts say the M&A deal is a way to essentially settle out of court the ongoing mRNA patent dispute between the companies following some recent CureVac legal wins.

BioNTech SE agreed to buy former Covid vaccine rival CureVac NV for about $1.25 billion in an all-stock transaction that will boost its growing oncology business.