In the first quarter of 2025, CureVac (CVAC, Financial) reported an operating loss of EUR 54.7 million, marking a reduction of EUR 18.6 million compared to EUR 73.3 million in the same period in 2024. The net financial outcome for the quarter was EUR 3 million, slightly down by EUR 0.4 million from EUR 3.4 million a year earlier.
The company's CEO highlighted the robust momentum and financial health at the beginning of 2025, attributed to advancements in their oncology and infectious disease initiatives, alongside strategic realignment. Achievements such as FDA clearance for their lung cancer program and full enrollment in their glioblastoma study demonstrate steady progress in addressing significant unmet medical needs.
The European Patent Office's recent decisions to uphold two of CureVac’s patents further strengthen the company’s mRNA intellectual property portfolio. With EUR 438 million in cash reserves, CureVac is in a strong position to trigger several key developments in its pipeline throughout the year and further expand its next-generation mRNA projects.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 6 analysts, the average target price for CureVac NV (CVAC, Financial) is $6.88 with a high estimate of $12.07 and a low estimate of $2.52. The average target implies an upside of 77.65% from the current price of $3.87. More detailed estimate data can be found on the CureVac NV (CVAC) Forecast page.
Based on the consensus recommendation from 7 brokerage firms, CureVac NV's (CVAC, Financial) average brokerage recommendation is currently 2.3, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for CureVac NV (CVAC, Financial) in one year is $6.87, suggesting a upside of 77.52% from the current price of $3.87. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the CureVac NV (CVAC) Summary page.
CVAC Key Business Developments
Release Date: April 10, 2025
- Cash Position: EUR481.7 million at the end of 2024.
- Revenue: EUR535.2 million for the full year 2024, primarily driven by a new licensing agreement with GSK.
- Operating Profit: EUR177.7 million for the full year 2024, compared to an operating loss of EUR274.2 million in 2023.
- Licensing Agreement with GSK: EUR400 million upfront payment recognized as revenue in 2024.
- Development Milestone Payment: EUR10 million milestone reached under the new license agreement with GSK.
- Workforce Reduction: Approximately 30% reduction completed in 2024.
- Operating Expenses Reduction: Anticipated decrease by over 30% from 2025 onwards, including a EUR25 million reduction in personnel costs.
- Extraordinary Payments: EUR137 million related to strategic redesign and patent litigation in 2024.
- Financial Runway: Expected financial runway into 2028.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- CureVac NV (CVAC, Financial) reported a strong cash position of EUR482 million at the end of 2024, providing a financial runway into 2028.
- The company achieved a significant regulatory milestone with the IND clearance from the US FDA for its squamous non-small cell lung cancer program.
- CureVac NV (CVAC) entered a licensing agreement with GSK valued up to EUR1.45 billion plus royalties, enhancing its financial stability and leveraging GSK's expertise.
- The European Patent Office upheld the validity of CureVac NV (CVAC)'s split poly-A tail 668 patent, reinforcing its pioneering role in mRNA vaccine technology.
- CureVac NV (CVAC) completed a strategic corporate restructuring, including a 30% headcount reduction, to enhance efficiency and focus on R&D priorities.
Negative Points
- CureVac NV (CVAC) reported a decrease in revenues by EUR8.1 million for the fourth quarter of 2024 compared to the same period in 2023.
- The company incurred extraordinary payments related to its first-generation COVID-19 vaccine, strategic redesign, and ongoing patent litigation amounting to EUR137 million in 2024.
- There is uncertainty regarding the timeline for data readouts from the squamous non-small cell lung cancer program due to the pace of enrollment and dose escalation requirements.
- CureVac NV (CVAC) terminated its collaboration with Genmab, indicating potential challenges in partnership dynamics or project progress.
- The company's operating loss for the fourth quarter of 2024 was EUR43.8 million, although it was an improvement from the previous year.
