Core Points - The European Patent Office confirmed the validity of CureVac's European patent EP 3 708 668 B1, subject to amendments [1] - The opposition by BioNTech SE against the patent was largely dismissed, marking a significant development in the patent dispute between CureVac and BioNTech [2] - The Regional Court Düsseldorf will determine if the amended patent has been infringed, with an infringement hearing scheduled for July 1, 2025 [3] Patent Details - The patent EP 3 708 668 B1 relates to CureVac's split poly-A tail technology, which enhances medical efficacy by improving protein expression on mRNA constructs [3] - A previous lawsuit involving Acuitas Therapeutics and CureVac was settled regarding credit for inventions related to COVID-19 vaccines [3][4] - A German court invalidated a patent central to CureVac's lawsuit against BioNTech concerning compensation for the use of CureVac's intellectual property in the Comirnaty vaccine [5] Market Reaction - Following the news, CureVac's stock (CVAC) increased by 17.5%, reaching $3.29 in premarket trading [5]

Core Insights - Small-cap stocks are experiencing significant gains in bullish markets due to their growth-oriented profiles and sensitivity to improving economic conditions [1][2] - The iShares Russell 2000 ETF has increased over 13% this quarter, indicating strong investor interest in small-cap opportunities [2] Company Summaries CureVac - CureVac, a biopharmaceutical company, has a strong pipeline including mRNA-based vaccines and therapies, with a recent revenue increase of 3000% year-over-year to $520 million, largely due to a $423.5 million payment from GSK [3][4] - The company has a current P/E ratio of 5.75 and a price target of $10, suggesting a potential upside of over 200% despite a 24% decline in stock price year-to-date [4][5] - CureVac's balance sheet shows $583.4 million in cash, extending its runway beyond 2028 [4] HeartCore Enterprises - HeartCore Enterprises, a Japan-based software company, has shifted towards recurring revenue through multi-year licensing agreements, enhancing its customer experience offerings [7] - The company has seen a stock increase of 150% year-to-date, with Q3 results showing an EPS of $0.53, exceeding estimates by over 50% [8][9] - HeartCore has a client retention rate of 25.9% over ten years and projects a 12% sales increase from CMS customers in FY 2025, although it remains under the radar with low institutional ownership [9]

Group 1 - The stock of CureVac N.V. (CVAC) is experiencing significant attention due to high implied volatility in the options market, particularly for the Dec 20, 2024 $06.00 Call option [1] - Implied volatility indicates the market's expectation of future price movement, suggesting that investors anticipate a substantial move in CureVac's stock, potentially due to an upcoming event [2] - CureVac currently holds a Zacks Rank 3 (Hold) in the Medical-Biomedical and Genetics industry, which is in the top 25% of the Zacks Industry Rank, with recent analyst estimates for the current quarter increasing from 53 cents to 61 cents per share [3] Group 2 - The high implied volatility surrounding CureVac may indicate a developing trading opportunity, as options traders often seek to sell premium on options with high implied volatility to capture decay [4]

Revenue and Profitability - Revenue for Q3 2024 reached €493,902 thousand, a significant increase from €16,483 thousand in Q3 2023, representing a growth of approximately 2,895%[4] - Net profit for Q3 2024 was €338,043 thousand, compared to a net loss of €48,681 thousand in Q3 2023, indicating a turnaround in profitability[4] - The company reported a total comprehensive income of €338,167 thousand for Q3 2024, a significant improvement from a loss of €48,711 thousand in Q3 2023[4] - Operating profit for Q3 2024 was €368,379 thousand, a substantial increase from an operating loss of €54,036 thousand in Q3 2023[4] - The company recognized total revenues of €520,711 thousand for the nine months ended September 30, 2024, compared to €31,191 thousand for the same period in 2023, reflecting a growth of 1,670%[4] Research and Development - Research and development expenses increased to €49,979 thousand in Q3 2024 from €27,245 thousand in Q3 2023, reflecting a growth of 83% as the company invests in new technologies[4] - The company plans to continue investing in research and development to enhance its product pipeline and expand market presence[4] - Research and development expenses for the nine months ended September 30, 2024, increased to EUR 108,896k from EUR 82,363k in the same period of 2023, reflecting a rise of 32%[32] Financial Position - Cash and cash equivalents rose to €550,862 thousand as of September 30, 2024, up from €402,452 thousand at the end of 2023, marking an increase of 37%[9] - Total assets increased to €854,188 thousand as of September 30, 2024, compared to €788,249 thousand at the end of 2023, showing a growth of 8.34%[9] - The accumulated deficit decreased to €1,371,035 thousand as of September 30, 2024, down from €1,565,981 thousand at the end of 2023, indicating improved financial health[9] Shareholder Information - Common shares outstanding increased from 223,988,675 on December 31, 2023, to 224,338,257 on September 30, 2024, reflecting share issuances for option exercises and RSU releases[40] - The weighted-average number of diluted common shares for the three months ended September 30, 2024, was 225,219,981, an increase from 223,914,164 in the same period of 2023[71] - The weighted-average number of diluted common shares for the nine months ended September 30, 2024, was 225,380,701, compared to 219,781,884 in the same period of 2023[71] - Dievini Hopp BioTech holding GmbH & Co. KG held approximately 37% of shares and voting rights in CureVac over the last twelve months, making it the de facto parent of the Group[72] Expenses and Liabilities - General and administrative expenses decreased to EUR 51,723k for the nine months ended September 30, 2024, down from EUR 64,106k in the same period of 2023, a reduction of 19%[35] - The increase in personnel expenses for the three months ended September 30, 2024, was primarily due to restructuring costs amounting to EUR 4,823k[33] - The Group recorded restructuring accruals of EUR 9,861k as of September 30, 2024, related to a workforce reduction of approximately 30%[63] - Trade and other payables decreased by EUR 34,617k to EUR 13,416k as of September 30, 2024, primarily due to payments to raw material suppliers[58] Taxation - Tax expenses for the three months ended September 30, 2024, increased to EUR 32,529k, primarily due to current tax expenses across various entities[65] - The effective tax rate for the nine months ended September 30, 2024, was approximately 9% for CureVac N.V., 12% for CureVac SE, and 39% for CureVac Corporate Services GmbH[67] Other Financial Information - The Company received a non-refundable upfront payment of EUR 400,000k from GSK in August 2024, which was fully recognized as revenue in Q3 2024[23] - The Company recognized EUR 508,323k in revenue from agreements with GSK for the nine months ending September 30, 2024[26] - The Company reached a development milestone of EUR 10,000k under the GSK collaboration in Q3 2024, compared to EUR 1,087k in the same period of 2023[26] - A full impairment of a production line was recognized amounting to EUR 36,641k due to strategic restructuring, included in other operating expenses[51] - The decrease in inventories was EUR 24,331k, primarily due to the write-down of raw materials that would have been recoverable under a previous collaboration with GSK[54] - Cash and cash equivalents as of September 30, 2024, included USD 25,204k and CHF 142k, exposing the Group to foreign currency exchange risk[69] - The Group acquired intangible assets worth EUR 4,094k during the nine months ended September 30, 2024, compared to EUR 2,610k in the same period of 2023, indicating a 56.8% increase[47] Legal and Compliance - CureVac incurred a cost of EUR 107k related to a settlement agreement with Antony Blanc in 2023, and paid EUR 101k under this agreement during the nine months ended September 30, 2024[74] - No significant impact from entities controlled by Dievini Hopp BioTech on the unaudited interim condensed consolidated financial statements for the nine months ended September 30, 2024[73] - No subsequent events requiring disclosure were identified after the balance sheet date up to the issuance of the financial statements[75]

Financial Data and Key Metrics Changes - The company reported a strong cash position of €551 million at the end of September 2024, significantly up from €402.5 million at the end of 2023, primarily due to a €400 million upfront payment from a licensing agreement with GSK [14][60]. - Revenues increased by €477.4 million to €493.9 million for the third quarter of 2024, and by €489.5 million to €520.7 million for the nine months ended 2024 compared to the same period in 2023, driven mainly by the GSK licensing agreement [61]. - Operating profit for the third quarter was €368.4 million, compared to an operating loss of €54 million for the same quarter in 2023, indicating a significant turnaround in financial performance [62]. Business Line Data and Key Metrics Changes - The oncology pipeline includes a Phase I study for glioblastoma, which has shown promising preliminary data, and a new off-the-shelf cancer vaccine program targeting squamous non-small cell lung cancer [10][27]. - In infectious diseases, a new program targeting urinary tract infections (UTIs) was launched, addressing a critical unmet medical need due to rising antibiotic resistance [11][49]. Market Data and Key Metrics Changes - The company is focusing on high unmet medical needs in oncology and infectious diseases, with a strategic emphasis on proprietary programs for non-respiratory diseases while licensing respiratory disease programs to GSK [21][41]. - The U.S. market for UTIs presents a significant opportunity, with over 50% of patients requiring antibiotic therapy and high rates of recurrence, leading to substantial direct medical costs [43]. Company Strategy and Development Direction - The company is undergoing a corporate redesign, including a 30% workforce reduction, aimed at improving operational efficiency and focusing on R&D [9][13]. - Future development priorities include advancing off-the-shelf and personalized cancer vaccines, with a strong emphasis on leveraging mRNA technology for innovative health solutions [15][30]. Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's strategic alignment and financial strength, positioning it well for ongoing growth and success in addressing major health challenges [15][68]. - The company anticipates a substantial reduction in operating expenses starting in 2025, with a focus on maintaining R&D capabilities while streamlining operations [58][67]. Other Important Information - The company has successfully terminated all remaining raw material commitments and closed contract manufacturing organizations related to its first-generation COVID-19 vaccine, ensuring no further related payments [59]. - The new Chief Financial Officer, Axel Malkomes, brings over 30 years of experience and is expected to contribute significantly to the company's strategic initiatives [19][20]. Q&A Session Summary Question: Discussion on business opportunities outside of mRNA - Management remains focused on oncology and infectious diseases, with ongoing collaborations with GSK and MD Anderson, while exploring new opportunities within these areas [71]. Question: Update on litigation - Ongoing litigation includes a U.S. court case scheduled for March 2025, with preparations underway [72]. Question: Plans for developing a combo vaccine for flu and COVID - Development efforts for a combination vaccine are ongoing, with a Phase I study starting soon and data expected next year [73]. Question: Reasoning for selecting lung cancer as a new indication - The selection is based on scientific data and the identification of novel antigens relevant to squamous non-small cell lung cancer, addressing a high unmet need [76]. Question: Recent litigation updates in Europe - European litigation is complex and ongoing, with rulings expected in the second quarter of next year [78]. Question: Comments on prior protein-based program and differentiation - The company has validated its approach with conserved antigens in UPEC bacteria, showing superior immunogenicity compared to previous programs [80][82].

Revenue Performance - Revenue for Q2 2024 was €14,436 thousand, a 90.2% increase from €7,579 thousand in Q2 2023[1] - Total revenue for the first half of 2024 reached €26,809 thousand, compared to €14,708 thousand in the same period of 2023, marking an 82.0% increase[1] - Revenue from collaboration agreements with GSK accounted for EUR 17,622k in the first half of 2024, up from EUR 12,756k in the same period of 2023, reflecting a 38.5% increase[13] - For the six months ended June 30, 2024, the Company recognized total revenues of EUR 26,809k, a 82.2% increase compared to EUR 14,708k for the same period in 2023[12] Losses and Expenses - Operating loss for Q2 2024 was €73,620 thousand, slightly higher than €71,801 thousand in Q2 2023[1] - Net loss for Q2 2024 was €72,543 thousand, compared to €67,414 thousand in Q2 2023, reflecting a 7.5% increase in losses[1] - Total comprehensive loss for Q2 2024 was €72,566 thousand, compared to €67,416 thousand in Q2 2023, reflecting a 7.5% increase in comprehensive losses[1] - Research and development expenses for Q2 2024 were €31,093 thousand, compared to €30,868 thousand in Q2 2023, indicating a slight increase[1] - The Company reported finance income of €2,533 thousand in Q2 2024, down from €6,197 thousand in Q2 2023[1] - The Company reported a total cost of sales of EUR 82,412k for the six months ended June 30, 2024, compared to EUR 46,489k for the same period in 2023, representing a 77.2% increase[16] - Research and development expenses increased to EUR 58,918k for the six months ended June 30, 2024, from EUR 55,118k in the same period of 2023, marking a 5.1% increase[18] - Share-based payment expenses for the six months ended June 30, 2024, totaled EUR 1,731k, down 62% from EUR 4,572k in the same period of 2023[24] Financial Position - Cash and cash equivalents decreased to €202,515 thousand as of June 30, 2024, down from €402,452 thousand at the end of 2023[3] - Total assets decreased to €556,836 thousand as of June 30, 2024, from €788,249 thousand at the end of 2023[3] - The accumulated deficit increased to €1,709,077 thousand as of June 30, 2024, compared to €1,565,981 thousand at the end of 2023[3] - The Company had contract liabilities of EUR 84,815k as of June 30, 2024, down from EUR 92,680k at December 31, 2023, indicating an 8.5% decrease[15] - The Group's trade receivables increased to EUR 18,769k as of June 30, 2024, compared to EUR 14,326k at December 31, 2023, reflecting a 31.4% increase[15] - Trade and other payables decreased by EUR 40,520k to EUR 7,513k as of June 30, 2024, from EUR 48,033k as of December 31, 2023[35] Strategic Developments - A new licensing agreement with GSK was entered into in July 2024, granting GSK full control over developing and manufacturing vaccine candidates for seasonal influenza and COVID-19[13] - CureVac and GSK entered a new licensing agreement, with CureVac receiving an upfront payment of EUR 400m and potential additional payments of up to EUR 1,050m in milestones and royalties[47] - The new agreement with GSK allows CureVac to retain exclusive rights to additional undisclosed infectious disease targets and the freedom to independently develop mRNA vaccines[47] - CureVac announced a strategic restructuring, including a workforce reduction of approximately 30%, aimed at focusing on high-value mRNA projects in oncology and other areas[48] - The restructuring is expected to decrease operational expenses by more than 30% from 2025 onward, including a reduction of personnel costs by approximately EUR 25m[48] - CureVac anticipates incurring one-time restructuring charges of approximately EUR 15m, subject to various assumptions[48] Milestones and Agreements - The Company achieved a development milestone of EUR 5,000k under the GSK I collaboration in Q2 2024, contributing EUR 1,711k to revenue recognition for the first half of 2024[13] - In August 2024, CureVac invoiced a EUR 10m development milestone payment to GSK for the start of a Phase 2 study of an investigational influenza A (H5N1) vaccine candidate[49] - The avian influenza program is fully controlled by GSK under the new licensing agreement, with the vaccine candidate based on CureVac's proprietary second-generation mRNA backbone[49] Shareholder Information - The number of common shares issued and outstanding as of June 30, 2024, was 224,314,013, an increase from 223,988,675 as of December 31, 2023[23] - Dievini Hopp BioTech holding GmbH & Co. KG holds approximately 37% of CureVac's shares and voting rights, making it the de facto parent of the Group[43] Tax and Other Expenses - The effective income tax rate for the six months ended June 30, 2024, was approximately 6.1%, reflecting the use of loss carryforwards[39] - Basic loss per share for the three months ended June 30, 2024, was EUR 0.32, compared to EUR 0.30 for the same period in 2023[41] - The impairment expense recognized due to the termination of a license agreement amounted to EUR 3,248k, included in research and development expenses[29] - CureVac incurred a cost of EUR 107k related to a settlement agreement with former executive Antony Blanc, with EUR 92k paid during the six months ended June 30, 2024[46]

Core Viewpoint - Wall Street anticipates a year-over-year increase in earnings for CureVac N.V. (CVAC) due to higher revenues, with a focus on how actual results compare to estimates impacting stock price [1] Earnings Expectations - CureVac is expected to report a quarterly loss of $0.28 per share, reflecting a year-over-year change of +15.2% [3] - Revenues are projected to be $10.07 million, which is an increase of 22.1% from the same quarter last year [3] Estimate Revisions - The consensus EPS estimate has remained unchanged over the last 30 days, indicating stability in analyst expectations [4] - The Most Accurate Estimate for CureVac is higher than the Zacks Consensus Estimate, resulting in an Earnings ESP of +7.14%, suggesting a bullish outlook from analysts [10] Earnings Surprise Prediction - A positive Earnings ESP reading is a strong indicator of a potential earnings beat, especially when combined with a Zacks Rank of 1 (Strong Buy), 2 (Buy), or 3 (Hold) [8] - CureVac currently holds a Zacks Rank of 3, indicating a likelihood of beating the consensus EPS estimate [11] Historical Performance - In the last reported quarter, CureVac was expected to post a loss of $0.22 per share but actually reported a loss of $0.34, resulting in a surprise of -54.55% [12] - Over the past four quarters, CureVac has only beaten consensus EPS estimates once [13] Conclusion - CureVac is viewed as a compelling candidate for an earnings beat, but investors should consider other factors before making investment decisions [16]

Core Insights - The Zacks Rank stock-rating system effectively utilizes earnings estimate revisions to classify stocks, with Zacks Rank 1 stocks achieving an average annual return of +25% since 1988 [2][4] - The recent upgrade of CureVac to Zacks Rank 2 indicates a positive shift in its earnings outlook, which is expected to positively influence its stock price [5][9] Earnings Estimate Revisions - CureVac's earnings estimates have seen a significant increase, with the Zacks Consensus Estimate rising by 111.6% over the past three months [13] - For the fiscal year ending December 2024, CureVac is projected to earn $0.07 per share, reflecting a 105.5% increase from the previous year's reported figure [7] Market Positioning - The upgrade to Zacks Rank 2 places CureVac in the top 20% of Zacks-covered stocks based on earnings estimate revisions, suggesting potential for near-term stock price appreciation [14] - The Zacks rating system maintains a balanced approach, ensuring that only the top 5% of stocks receive a 'Strong Buy' rating, which highlights the significance of CureVac's position within this framework [8][10]

Financial Performance - Total revenue for the three months ended March 31, 2024, was EUR 12,373k, an increase from EUR 7,129k in the same period of 2023, representing a growth of approximately 74.5%[55]. - The basic loss per share for the three months ended March 31, 2024, was EUR 0.31, compared to EUR 0.27 for the same period in 2023[20]. - Net loss for the period increased to EUR 70,553k for the three months ended March 31, 2024, from EUR 57,419k in the same period of 2023, representing an increase of about 22.8%[55]. - Total comprehensive loss for the period was EUR 70,609k for the three months ended March 31, 2024, compared to EUR 57,400k in the same period of 2023, indicating an increase of approximately 22.9%[55]. - The operating loss for the three months ended March 31, 2024, was EUR 73,317k, compared to an operating loss of EUR 60,355k in the same period of 2023, indicating a deterioration of approximately 21.5%[55]. Cash and Cash Equivalents - Cash and cash equivalents decreased from EUR 402,452k as of December 31, 2023, to EUR 300,152k as of March 31, 2024, a decline of 25.5%[36]. - Cash and cash equivalents at the end of the period were EUR 617,519k, up from EUR 300,152k at the end of the same period in 2023, marking an increase of approximately 105.8%[39]. - The company reported a net cash flow used in operating activities of EUR (99,586)k for the three months ended March 31, 2024, compared to EUR (96,554)k in the same period of 2023, showing a slight increase in cash outflow[39]. Share Issuance and Equity - The company issued 317,005 common shares between January and March 2024, increasing total outstanding shares to 224,305,680 as of March 31, 2024[7]. - The follow-on public offering in February 2023 raised EUR 219,832k from the sale of 27,027,028 common shares at USD 9.25 per share, with additional offering costs of EUR 14,580k[8]. - The total equity decreased from EUR 516,941k as of December 31, 2023, to EUR 446,913k as of March 31, 2024, a decline of 13.5%[36]. - CureVac's total equity as of March 31, 2024, was EUR 446,913k, a decrease from EUR 713,399k as of March 31, 2023[59]. Expenses and Provisions - Research and development expenses increased to EUR 27,825k for the three months ended March 31, 2024, compared to EUR 24,251k in the same period of 2023, reflecting a rise of about 10.6%[55]. - Research and development expenses decreased to EUR 19,119k for the three months ended March 31, 2024, from EUR 23,287k in the prior year, primarily due to reimbursements from GSK[96][95]. - The company recognized an increase in provisions related to arbitration claims by EUR 17,000k, following a ruling that awarded 65% of Celonic's claims[17]. - Other liabilities and provisions increased by EUR 8,960k during the three months ended March 31, 2024, mainly due to higher provisions[82]. Assets and Liabilities - The company reported a decrease in trade and other payables from EUR 48,033k as of December 31, 2023, to EUR 18,457k as of March 31, 2024, a reduction of 61.6%[16]. - Inventories increased from EUR 24,801k as of December 31, 2023, to EUR 26,207k as of March 31, 2024, an increase of 5.7%[36]. - Trade receivables increased to EUR 14,644k as of March 31, 2024, from EUR 14,326k as of December 31, 2023, reflecting a growth of about 2.2%[45]. - Prepaid expenses and other current assets as of March 31, 2024, amounted to EUR 22,820k, a decrease from EUR 23,763k as of December 31, 2023[105]. - The Company had tax receivables of EUR 6,813k as of March 31, 2024, down from EUR 12,881k as of December 31, 2023[105]. Agreements and Collaborations - The company invoiced EUR 5,000k to GSK for a development milestone related to a Phase 1 study of an investigational influenza A vaccine candidate[27]. - Revenue recognized under collaboration agreements with GSK for the three months ended March 31, 2024, was EUR 8,895k, compared to EUR 6,473k in the same period of 2023, reflecting an increase of about 37.3%[44]. - The company entered into a co-development and licensing agreement with The University of Texas MD Anderson Cancer Center in April 2024 to develop novel mRNA-based cancer vaccines[92]. Share-Based Payments and RSUs - Share-based payment expenses for the three months ended March 31, 2024, were EUR 487k, down from EUR 1,578k in the same period of 2023[99]. - As of March 31, 2024, the Group awarded a total of 92,701 RSUs to Supervisory Board members and 646,914 RSUs to the Executive Board and various key employees[102]. - A total of 295,390 RSUs were settled up to March 31, 2024[102]. - No options were exercised under the New VSOP plan within the three months ended March 31, 2024[103]. - Diluted earnings per share calculations excluded share options and RSUs of 1,413,112 as of March 31, 2024, due to their antidilutive effect[109]. Other Financial Information - The company acquired intangible assets amounting to EUR 4,078k during the three months ended March 31, 2024, significantly higher than EUR 134k in the same period of 2023[78]. - The increase in property, plant, and equipment during the three months ended March 31, 2024, was EUR 1,284k, compared to EUR 3,206k for the same period in 2023[104]. - The Group incurred a cost of EUR 107k related to a settlement agreement with former executive Antony Blanc in 2023, with EUR 76k paid during the three months ended March 31, 2024[111].

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