CureVac Reports Q1 2024 Financial Results and Business Update

CureVac, a global biopharmaceutical company specializing in mRNA-based medicines, has detailed significant progress and strategic initiatives in its first-quarter 2024 financial results and business update. These developments underscore CureVac's ongoing efforts to streamline operations, advance its clinical pipeline, and protect its intellectual property rights.

Organizational Restructuring

CureVac has embarked on a comprehensive organizational redesign aimed at increasing efficiency and reducing operating costs. This initiative, launched in April 2024, focuses on downsizing the company's pandemic-related infrastructure, resulting in a planned reduction of 150 positions by the end of the year. These measures are expected to yield financial savings starting from the second half of 2024, effectively extending CureVac's cash runway into the fourth quarter of 2025.

Prophylactic Vaccines Development

In the realm of vaccine development, CureVac, in collaboration with GSK, continues to make strides with its second-generation mRNA vaccine program. These vaccines leverage CureVac's proprietary mRNA technology designed to enhance intracellular translation for robust immune responses. A significant milestone was achieved in April 2024 when the U.S. FDA granted Fast Track designation to a pre-pandemic avian influenza (H5N1) vaccine candidate, currently in Phase 1 clinical trials. This designation facilitates the expedited development and review of the vaccine, which is critical given the potential pandemic threat posed by the H5N1 virus.

Intellectual Property Litigation and Settlements

CureVac is actively engaged in protecting its intellectual property rights through litigation. A notable resolution was reached with Acuitas Therapeutics in April 2024, which settled co-ownership and co-inventorship claims related to a specific patent family. As part of the settlement, Acuitas acknowledges CureVac's ownership of certain patent claims, while CureVac recognizes Acuitas’s licenses to selected patents. Consequently, three patents will be withdrawn from the ongoing U.S. litigation against Pfizer/BioNTech.

The U.S. litigation against Pfizer/BioNTech now continues under seven patents, with a trial expected in the second quarter of 2025. In Germany, CureVac has filed an appeal with the Supreme Court of Justice against a decision that nullified a portion of its patent. The litigation in Germany will proceed under six intellectual property rights following the withdrawal of two utility models due to the Acuitas settlement.

Financial Performance

CureVac reported cash and cash equivalents of €300.2 million as of March 31, 2024, a decrease from €402.5 million at the end of 2023. The significant cash outflow during the first quarter was primarily attributed to the final payments for raw material commitments related to CureVac's first-generation SARS-CoV-2 vaccine, CVnCoV. With these payments completed, CureVac anticipates a lower cash burn moving forward.

Revenues and Operating Results

For the first quarter of 2024, CureVac reported revenues of €12.4 million, marking a 74% increase from €7.1 million in the same period of the previous year. This growth was largely driven by higher revenues from collaborations with GSK and CRISPR. Despite this increase in revenues, the company reported an operating loss of €73.3 million, up from €60.4 million in the first quarter of 2023. This loss was influenced by increased costs related to contract terminations, higher R&D spending, particularly in oncology projects, and litigation expenses.

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