CureVac’s Strategic Pivot Delivers Financial Turnaround

After operating in the shadow of major pandemic winners, Germany's mRNA pioneer CureVac is staging a remarkable comeback. A substantial financial injection from GSK, deep organizational restructuring, and encouraging early results in cancer therapeutics are fueling speculation that the Tübingen-based biotech firm may have finally reached the long-awaited inflection point investors have been anticipating.

Concurrent with its revised partnership agreement, CureVac initiated a significant corporate overhaul. The company is reducing its workforce by 30% by the conclusion of 2024, targeting a reduction in operational expenditures exceeding 30% starting in 2025. Personnel cost savings alone are projected to reach approximately €25 million annually.

This strategic shift has yielded dramatic financial improvements. The third quarter of 2024 saw the company report an operating profit of €368.4 million, a substantial reversal from the €54 million operating loss recorded in the same period the previous year. Net income reached €371.6 million. With a strengthened cash position of €551 million, CureVac now has a financial runway extending to 2028, eliminating any immediate requirement for additional capital raises.

GSK Partnership Transforms Financial Trajectory

In July 2024, CureVac finalized a comprehensively restructured collaboration with British pharmaceutical giant GSK, receiving a non-refundable upfront payment of €400 million. This transaction had an immediate and profound impact on the company's financial statements, driving third-quarter 2024 revenues to €493.9 million—an extraordinary increase of 2,897% compared to the prior year.

The revised agreement transferred complete control over the development, manufacturing, and global commercialization of mRNA vaccine candidates for influenza and COVID-19, including combination vaccines, to GSK. While effectively withdrawing from this competitive segment, CureVac remains eligible for future milestone payments. An additional €10 million was received in November 2024 when GSK initiated a clinical trial for a combined flu-COVID vaccine.

Should investors sell immediately? Or is it worth buying CureVac?

Oncology Emerges as Strategic Priority

As CureVac scales back its vaccine operations, oncology has become the central focus of its development pipeline. During September and November 2024, the company unveiled initial clinical data for its mRNA cancer vaccine, CVGBM, targeting glioblastomas—an aggressive form of brain cancer. The results demonstrated antigen-specific T-cell responses in 77% of treated patients.

The company plans to advance another oncology program targeting non-small cell lung cancer into Phase 1 clinical trials during the second half of 2025. Additionally, CureVac is developing a preclinical vaccine targeting urinary tract infections—a substantial market opportunity where mRNA-based vaccines may offer significant advantages over traditional protein-based alternatives.

New Financial Leadership for Strategic Execution

Strengthening its executive team, CureVac appointed Axel Sven Malkomes as its new Chief Financial Officer in mid-November. The incoming CFO brings more than three decades of financial leadership experience within the biotechnology and pharmaceutical sectors, including previous roles as finance chief at Cardior Pharmaceuticals and Medigene. His primary mandate involves leveraging the company's newly established financial stability to make targeted investments in the most promising mRNA therapeutic candidates.

Chief Executive Officer Dr. Alexander Zehnder expressed strong confidence in the company's repositioning, stating that CureVac is now "financially positioned to create shareholder value by advancing our portfolio of novel mRNA-based medicines." The strategic direction is unequivocal—concentrating resources on oncology, infectious diseases, and other therapeutic areas with significant unmet medical needs.