CureVac Earnings: Launches Avian Flu Vaccine Trial With GSK; Cuts Costs via Reorganization Plan

Despite CureVac’s emerging stage, the company is making progress across its early-stage mRNA pipeline and it announced plans to reduce costs to extend its cash runway. CureVac’s reorganization plan includes a program for employees to voluntarily leave the company, aiming to cut 150 positions. We maintain CureVac’s fair value estimate of $15.40 per share and view the stock as undervalued for long-term investors with a very high degree of risk tolerance. We see significant uncertainty related to regulatory approvals for CureVac’s early-stage pipeline and lack of approved products, so the company warrants a no moat rating and Extreme Morningstar Uncertainty Rating.