Based in Tübingen, Germany, CureVac N.V. (CVAC), a clinical-stage biopharmaceutical company that develops messenger ribonucleic acid (mRNA)-based treatments, could reflect a compelling opportunity in the biotechnology industry.
Medical treatments based on mRNA are used as data transporters. They give instructions to cells in the human body for producing their own proteins, in order to prevent or fight a lot of diseases.
Shares of CureVac N.V. have soared 102% over the last year, but there are multiple potential catalysts that could send shares even higher.
From The Balance Sheet
When it comes to the balance sheet, CureVac had roughly $893.5 million in total cash as of the most recent quarter.
The company will use available financial resources to continue developing its portfolio of treatments for several forms of cancer, infectious and rare diseases, as well as to build a widespread manufacturing network in Europe.
Potential Growth Catalysts
The company has joined the global fight against the spread of COVID-19, with the development of its mRNA-based vaccine product candidate.
CureVac N.V. will receive funds from the European Union to develop its COVID-19 vaccine and to ramp up the production capacity rate. The company has a target of supplying 900 million doses before the end of 2022.
CureVac has inked several partnership agreements with pharma players like Bayer (BAYRY), GlaxoSmithKline (GSK), and Novartis AG (NVS) for the development of its vaccine, and the development of a next generation vaccine candidate that will work against variants of the coronavirus. These drug giants will also support the production of 150 million doses in 2021 and up to 360 million doses in 2022.
On top of this, the company is on track with CV8102, its treatment candidate for four types of solid tumors, as the most recent clinical trial results showed an acceptable level of tolerability.
Wall Street’s Take
In the last three months, only one analyst has published a review, rating the stock a Buy. Additionally, the analyst set a $123 price target, putting the upside potential at 9%. (See CureVac stock analysis on TipRanks)
Over the past 12 months, the stock has posted an impressive gain, outperforming the overall market. This, however, is not to say CVAC doesn’t have fuel left in the tank.
Disclosure: On the date of publication, the author did not have (either directly or indirectly) any positions in the securities mentioned in this article.
Disclaimer: The information contained herein is for informational purposes only. Nothing in this article should be taken as a solicitation to purchase or sell securities.