CureVac Receives COVID-19 vaccine development grant from the German Ministry as CVAC surged by double-digits on Friday.
The pandemic vaccine development programs have pulled off many pharmaceutical firms in the market during this pandemic. CureVac (CVAC) has also recorded a surge in its shares price after the announcement of receiving a grant of $298 million from the German Federal Ministry of Education and Research (BMBF).
The biopharmaceutical company would use the grant to speed up the development of its COVID-19 vaccine candidate. CureVac through the following grant would also increase its production to meet up the demand. The company anticipates to receive the funding in two phases, the first of $122 million by the end of this year and the remaining $176 million in 2021.
The recent update of CVAC’s potential COVID-19 vaccine candidate can be a major development for the company. The German Company may have sealed vaccine deals in the country, but CureVac is in advanced talks to secure a vaccine deal of $225 million to the European Commission, reported by InvestorPlace’s Mark Hake. If the following deal is signed, it would also add up a follow-on order of 180 million doses.
CurveVac mentioned that based on its current trials, it would begin a large-scale human trial on its vaccine in the last quarter of this year. Meanwhile, Elon Musk was in Germany last week and he visited CureVac. The Silicon Valley entrepreneur toured the company and examined the progress of the vaccine project. Musk rates CureVac as one of the most innovative firms.
Moreover, CureVac is currently working on three other mRNA candidates that are under development in Phase 1 testing including two cancer immunotherapies and one rabies vaccine.
The company has kept the cost of production to its minimum in order to sell the vaccine doses at a low price. CureVac intends to sell its vaccine at around $3 to $4 per dose. In comparison with other COVID-19 vaccine companies, this price may be way cheaper but it can drive more deals from developing nations. If the company succeeds in making large deals, this would give CVAC revenues in millions and even more.
However, CureVac (CVAC) has a way to go ahead of attaining the regulatory approval for its commercialization and distribution in the market. The low price of vaccine can impact on the investors, as they would be looking for higher profits which won’t be easily possible unless the company sells its vaccine at prices on par with the others.
In such circumstances, CureVac can become a victim of the unpredicted market and may crash. If this happens, it would end on a lower side for CVAC stock and the share price may drop to its IPO price. The key for the investors is to follow up on the vaccine development and its market approval and also on the market movement during this time.
CureVac (CVAC) was trading at $16 per share during the last month before it spiked to $85. But, the upside potential of the stock and investors pulling out has pushed its price to $60 mark.
CureVac (CVAC) closed the trading session on Friday at $63.45 starting the day at $60.25. The stock ended on a high before the market closure on Friday followed by the COVID-19 vaccine news, as it was up by almost 12%.