CureVac Stock Declines On Weaker-Than-Expected Q4 Revenue: Retail’s On Wait-And-Watch Mode
Synopsis
The company reported revenue of €14.5 million for the fourth quarter, representing a decrease of €8.1 million from the corresponding period of 2023, and below an analyst estimate of €20.58, according to FinChat data.
Shares of biotech company CureVac N.V. (CVAC) were in the spotlight on Thursday after the company’s fourth-quarter revenue fell below Wall Street estimates.
The company reported a revenue of €14.5 million ($16.11 million) for the fourth quarter, representing a decrease of €8.1 million from the corresponding period of 2023 and below an analyst estimate of €20.58, according to FinChat data.
Revenue for the full year 2024, however, increased by €53.8 million to €535.2 million, exceeding an analyst estimate of €524.17 million. The increase was primarily driven by a new license agreement with GSK, as part of which CureVac received a refundable upfront payment of €400 million.
CureVac, however, warned that €480.4 million of the revenue recognized in 2024 must be seen as a positive one-time event that will not be repeated in the future.
Pre-tax loss for the fourth quarter came in at €38.6 million, compared to a pre-tax loss of €86.5 million in the same period of 2023.
The company said its cash and cash equivalents totaled €481.7 million at the end of December 2024, an increase from €402.5 million at the end of 2023. The company reaffirmed its expected cash runway into 2028.
CureVac is developing a new class of medicines based on messenger ribonucleic acid (mRNA). Company CFO Axel Sven Malcomes said that the company’s “robust cash position” provides it with the resources needed to accelerate innovation in its mRNA pipeline.
The firm now expects to dose the first patient with its investigational precision immunotherapy CVHNLC, which targets squamous non-small cell lung cancer, in the second half of 2025.
On Stocktwits, retail sentiment rose but stayed within ‘neutral’ territory while message volume rose from ‘extremely low’ to ‘low’ levels over the past 24 hours.
CVAC shares are down by over 14% year-to-date and by nearly 1% over the past 12 months.
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