CureVac Triples Value in Nasdaq Debut
German biotech CureVac has more than tripled its market value to over $5 billion in an initial public offering launched on the US Nasdaq Global Market. Altogether 13.33 million shares changed hands at $16 each, the high end of the offered range. Separately, CureVac is raising €100 million in a private placement.
The company, one of several developing an mRNA vaccine for Covid-19, last week received permission to begin Phase 1 clinical trials. Results are expected by the end of 2020.
In June, the German government bought 23% of Cure Vac, having paid €300 million for the stake via development bank Kreditanstalt für Wiederaufbau (KfW). Berlin reportedly sought to anchor the biotech in Europe after rumors surfaced that the administration of president Donald Trump was trying to lure it to the United States.
In July, British pharma giant Glaxo SmithKline (GSK) said it would take a 10% stake in the German biotech. Backed by the Bill & Melinda Gates Foundation, the companies will work on developing up to five mRNA-based vaccines and monoclonal antibodies (mAbs) for infectious diseases.
The deal with GSK makes CureVac eligible for milestone payments of up to £600 million and tiered royalties on sales. It does not include CureVac’s existing COVID-19 and rabies vaccines research programs.
Also last month, the European Investment Bank (EIB) granted CureVac a €75 million loan to support its ongoing development of vaccines against infectious diseases, including the Covid-19 candidate CVnCoV.
The capital injection also will support the company’s efforts to expand its existing Good Manufacturing Practice (GMP) certified production capabilities and accelerate the completion of its new production facility in Tübingen, Germany, where it plans to produce the vaccine.
Author: Dede Williams, Freelance Journalist
