Investors have been paying close attention to CureVac (NASDAQ:CVAC) stock, which had its stock exchange debut on Aug. 14 at an opening price of $44. Now CVAC stock is at $55 with a market capitalization near $10 billion.
Tubingen, Germany-based clinical-stage biopharmaceutical company CureVac develops therapies and vaccines against infectious as well as rare diseases. Founded in 2000, it has joined the global race to discover a cure against the novel coronavirus pandemic.
In the coming weeks, while the race to produce a treatment continues, CVAC shares are likely to be volatile. Today, we’ll take a closer look at the company, highlighting that CureVac stock is a high risk/high return investment that may deserve your attention.
CureVac Joins the Race to Develop a Vaccine
CureVac focuses on developing medicines based on messenger ribonucleic acid (mRNA), which transmits instructions to the body to produce proteins against a given disease. Over the past two decades, it has become one of the most important companies to successfully use mRNA for therapeutic purposes.
In addition to its vaccine candidate against Covid-19, the company has a number of treatment candidates in the pipeline. Thus, in the coming years, the total market opportunities for its diverse treatments could be sizable.
Early in the year, the Coalition for Epidemic Preparedness Innovations (CEPI), a public-private partnership specializing in fighting infectious diseases, financially supported CureVac’s initial vaccine efforts. Then in March, the European Union provided the company with 80 million euros (about $95 million) for the company’s efforts to develop a vaccine against the novel coronavirus.
Since then its vaccine development and further collaboration efforts have expanded. For example, in early June, CureVac started Phase 1 clinical trials in Germany and Belgium.
In July, U.K.-based GlaxoSmithKline (NYSE:GSK), one of the vaccine developers worldwide, and CureVac announced strategic mRNA technology collaboration. Also in July, European Investment Bank and CureVac signed a substantial loan agreement for the development and large-scale production of vaccines.
Its range of collaborations may act as testament that the wider scientific and biopharma communities regard CureVac’s pipeline as potentially and scientifically strong.
What Could Derail CureVac Stock?
Over the past six months, CureVac’s has joined dozens of other biopharma companies that are racing to create a vaccine against Covid-19. As of Aug. 28, the number of globally reported infections has approached 25 million. The outbreak has already killed close to 850,000 people, including more than 180,000 in the U.S.
Since its IPO, CureVac stock’s range over the past few weeks has been $36.15-$85. Put another way, the short-term fortunes of shareholders ebbs and flows, depending on the daily news flow on the pandemic and the potential of vaccine discovery. Potential investors may be interested to know that strong trading volume typically accompanies the up days in CureVac stock.
At present there are a range of companies that are working on a vaccine or another type of drug against the novel coronavirus. The list includes Amgen (NASDAQ:AMGN), AstraZeneca (NYSE:AZN), BioNTech (NASDAQ:BNTX), Gilead (NASDAQ:GILD), GSK, iBio (NYSEAMERICAN:IBIO), Inovio Pharmaceuticals (NASDAQ:INO), Moderna (NASDAQ:MRNA), Novavax (NASDAQ:NVAX), Pfizer (NYSE:PFE), Sanofi (NASDAQ:SNY), and Sorrento Therapeutics (NASDAQ:SRNE).
Not every one of these companies will become successful in discovering a cure against the coronavirus. But several are expected to be successful. Developing an efficient vaccine takes science, time and money. The next few months will tell of CureVac will be one of the firms to successfully pass the finishing life. If delivers on the initial excitement of the IPO, CVAC shares could easily make a new leg up.
The Bottom Line
In the final months of the year, shareholders will pay close attention clinical updates from various vaccine developers like CureVac. Even if successful clinical trials finalize soon, that does not necessarily mean the relevant European authorities or the U.S. Food and Drug Administration (FDA) will accept a vaccine application. Therefore, more stomach-churning volatility is possible in CVAC shares.
If your portfolio can handle a high-risk, high-return investment, then you may want to consider investing in CureVac stock. The rewards may be substantial. In addition to its Covid-19 vaccine candidate, it has other vaccines in the pipeline that may well be successful in the coming quarters. Meanwhile, the company may also find itself a takeover candidate.
On the date of publication, Tezcan Gecgil did not hold (either directly or indirectly) any positions in the securities mentioned in this article. Tezcan Gecgil has worked in investment management for over two decades in the U.S. and U.K. In addition to formal higher education, including a Ph.D. degree, in the field, she has also completed all three levels of the Chartered Market Technician (CMT) examination. Her passion is for options trading based on technical analysis of fundamentally strong companies. She especially enjoys setting up weekly covered calls for income generation. She also publishes educational articles on long-term investing.