CureVac’s (NASDAQ:CVAC) initial public offering in the US markets went incredibly well for investors, posting a 250% gain on its first day of trading. CureVac is a German Biopharma, based in Tübingen who specialises in the development of vaccines for infectious diseases. CVAC’s IPO raised $213.3 million USD in funding at its short price of $16. Investors quickly snapped up the opportunity for shares driving CVAC to close at $55.90. CureVac’s quick success with it’s COVID-19 vaccine CVnCoV, saw the German Government buying a large stake in CureVac amounting to 300 million Euros in June this year. CVAC’s COVID-19 vaccine CVnCoV, commenced human trials in June and aims to begin larger human trials by fall this year.
Table of Contents 1. Introduction 2. What CVAC investors need to know 3. Does YIG see value in CureVac (NASDAQ:CVAC)
What CVAC investors need to know
- CVAC’s COVID-19 vaccine CVnCoV is a strong global contender in the race for the first safe and effective COVID-19 vaccine. The German Bio-Pharma is compared with the big US players Moderna and Pfizer in the COVID vaccine race.
- CVAC announced in late July they received $640 million USD in private financing from the German Government and the Qatar Investment Authority (QIA)
- CVAC and GlaxoSmithKline (NYSE:GSK) entered a strategic collaboration for the development of vaccines for deadly diseases. This collaboration sees CVAC receive over 200 million Euros from both equity investment and an up-front payment from GSK. Note this is not including the development of the COVID-19 vaccine.
- CVAC entered a 75 million Euro loan with the European Investment Bank to further fund the manufacturing of the COVID-19 vaccine. CVAC currently has the potential to produce hundreds of millions of vaccine doses. CureVac’s expansion in operations over the next 2 years is predicted to produce several billion doses of vaccines.
- The IPO success proves the investor sentiment remains strongly sided with the leaders of the COVID-19 vaccine. With only one day trading under CVAC’s belt, we can expect further investor interest (opinion not advice). The CVAC stock offers an off-shore option for US investors to spread exposure in the event the US does not develop the first vaccine.
We are working intensively on a #vaccine against #COVID19. Thanks to our production facilities, we can produce up to several hundred million doses. A new production unit, which we plan to complete in the next 2 years, will enable us to manufacture several billion doses per year. pic.twitter.com/9M0e7cRado
— CureVac (@CureVacRNA) April 7, 2020
Does YIG see value in CureVac stock?
Before I begin, I am obliged to remind our viewers that this is not advice but rather investment commentary from extensive research
There is no doubt CureVac are one of the most promising global leaders in the race for a COVID-19 vaccine. The first COVID-19 vaccine will receive historic demand by Governments across the globe. Ultimately offering what may be one of the greatest opportunities these Bio-Pharma’s will have this decade. With strong US contenders such as Moderna, Pfizer and Novavax – the German Biopharma will have an up-hill battle to finish in first place. However, the first vaccine to be released will have serious distribution and supply shortages. This offers some security to investors who don’t pick the imminent winner.
The investor behaviour in the vaccine market remains heavily shifted by news. Therefore we expect CVAC to behave in the same manner as a listed US stock. With CVAC closing at $55.90 on the first day of trading, we can expect investors to continue to pump money in, in the hope that it continues to remain bullish. NVAX is currently priced at $146.51 and Moderna at $69.59 respectively. We could expect CVAC to find equilibrium with these two Bio-Pharma’s for the time being. This stock is definitely one to watch this week.
The information above is not financial advice. Youth Investment Group has no liability for personal financial interests or investment decisions. You should make your own investment decisions based upon your own research and what you believe is best for you.