CureVac(CVAC) - 2025 Q1 - Quarterly Report

Unaudited Interim Condensed Consolidated Financial Statements Consolidated Statements of Operations and Other Comprehensive Income (Loss) CureVac significantly reduced its net loss to €52.1 million in Q1 2025, primarily due to lower cost of sales despite decreased revenue Q1 2025 vs. Q1 2024 Statement of Operations Highlights | Metric | Three months ended March 31, 2024 (EUR k) | Three months ended March 31, 2025 (EUR k) | Change | | :--- | :--- | :--- | :--- | | Revenue | 12,373 | 893 | -92.8% | | Operating loss | (73,317) | (54,727) | +25.3% | | Net loss for the period | (70,553) | (52,084) | +26.2% | | Total comprehensive loss | (70,609) | (52,197) | +26.1% | | Net loss per share (basic and diluted) | (€0.31) | (€0.23) | +25.8% | Consolidated Statements of Financial Position As of March 31, 2025, CureVac's total assets decreased to €742.3 million, primarily due to lower cash, while total equity also declined to €646.7 million Financial Position as of March 31, 2025 | Metric | December 31, 2024 (EUR k) | March 31, 2025 (EUR k) | Change | | :--- | :--- | :--- | :--- | | Total Assets | 802,827 | 742,267 | -7.5% | | Cash and cash equivalents | 481,748 | 438,331 | -9.0% | | Total Liabilities | 106,219 | 95,578 | -10.0% | | Total Equity | 696,608 | 646,689 | -7.2% | Consolidated Statements of Changes in Shareholders' Equity Total equity decreased by €50.0 million in Q1 2025, primarily driven by the net loss for the period, partially offset by share-based payments and tax benefits - The decrease in total equity during Q1 2025 was primarily driven by the net loss of €52.1 million[8] Changes in Equity for Q1 2025 | Description | Amount (EUR k) | | :--- | :--- | | Balance as of January 1, 2025 | 696,608 | | Net loss | (52,084) | | Other comprehensive loss | (113) | | Share-based payment expense | 1,156 | | Realized tax benefits | 1,122 | | Balance as of March 31, 2025 | 646,689 | Consolidated Statements of Cash Flows CureVac significantly reduced its net cash used in operating activities to €41.4 million in Q1 2025, leading to a total cash decrease of €43.4 million Q1 2025 vs. Q1 2024 Cash Flow Summary | Metric | Three months ended March 31, 2024 (EUR k) | Three months ended March 31, 2025 (EUR k) | | :--- | :--- | :--- | | Net cash flow used in operating activities | (96,554) | (41,374) | | Net cash flow used in investing activities | (5,088) | (511) | | Net cash flow used in financing activities | (1,124) | (1,312) | | Net decrease in cash and cash equivalents | (102,766) | (43,196) | | Cash and cash equivalents, end of period | 300,152 | 438,331 | Notes to the Consolidated Financial Statements Corporate Information and Basis of Preparation CureVac, an mRNA biopharmaceutical company, underwent a 2024 restructuring to focus on oncology and infectious diseases, reclassifying manufacturing costs to R&D expenses - In 2024, the company implemented an organizational restructuring, including an approximately 30% headcount reduction, to focus resources on mRNA opportunities in oncology and infectious diseases[12] - Following the strategic change, costs related to the manufacturing organization are now recognized as 'Research and Development Expenses' instead of 'Cost of sales'[12] - The company's largest shareholder and de facto parent is dievini Hopp BioTech holding GmbH & Co. KG, holding approximately 37% of shares and voting rights[13] Notes to the Consolidated Statements of Operations This section details the income statement, highlighting a sharp revenue decline due to the new GSK agreement, a dramatic fall in cost of sales, and increased R&D expenses from reclassification 3.1 Revenue from contract with customers Revenue decreased by 92.8% to €0.9 million in Q1 2025, primarily due to the new 2024 GSK Licensing Agreement replacing prior collaboration revenue streams Revenue by Customer | Customer | Q1 2024 (EUR k) | Q1 2025 (EUR k) | | :--- | :--- | :--- | | GSK | 8,895 | 306 | | CRISPR | 3,478 | 586 | | Total | 12,373 | 893 | - The new 2024 GSK Licensing Agreement replaced all previous financial considerations from prior collaboration agreements, leading to a significant change in revenue recognition, with only €306k recognized under this new agreement in Q1 2025[18] 3.2 Cost of sales Cost of sales dramatically decreased to €0.9 million in Q1 2025, primarily due to the reclassification of manufacturing costs to R&D and a prior-year provision for a CMO dispute - The significant decrease in cost of sales is primarily due to the change in corporate strategy, resulting in the reclassification of manufacturing organization costs to R&D expenses[22] - Cost of sales in Q1 2024 included a significant increase in a provision related to a dispute with a contract manufacturing organization (CMO)[22][31] 3.3 Research and development expenses R&D expenses increased by 35% to €37.6 million in Q1 2025, mainly due to the reclassification of manufacturing costs and higher IP litigation expenses R&D Expense Breakdown | Category | Q1 2024 (EUR k) | Q1 2025 (EUR k) | | :--- | :--- | :--- | | Personnel | (9,058) | (18,122) | | Patents and fees | (4,459) | (5,767) | | Third-party services | (4,684) | (6,155) | | Total | (27,825) | (37,593) | - The increase in R&D expenses is attributed to the reclassification of manufacturing costs (especially personnel) and higher expenses for IP litigations[23] 3.4 General and administrative expenses General and administrative expenses decreased to €16.4 million in Q1 2025, primarily due to reduced personnel and third-party service expenses following the 2024 workforce reduction - The decrease in G&A expenses was primarily due to reduced personnel expenses related to the workforce reduction from the 2024 strategic restructuring[24] Equity and Share-Based Payments As of March 31, 2025, common shares outstanding increased to 225.2 million, while share-based payment expenses more than doubled to €1.2 million in Q1 2025 Change in Common Shares Outstanding | Date | Common Shares Issued and Outstanding | | :--- | :--- | | December 31, 2024 | 224,338,257 | | March 31, 2025 | 225,159,362 | Share-Based Payment Expense | Period | Total Expense (EUR k) | | :--- | :--- | | Q1 2024 | (487) | | Q1 2025 | (1,156) | - In Q1 2025, the Group granted a total of 5,898,413 options to key employees, the Executive Board, and Supervisory Board members under its LTIP[27][28] Liabilities, Provisions, and Taxes Other liabilities and provisions decreased in Q1 2025 due to restructuring provision utilization, contrasting with a significant prior-year charge from a CMO dispute - The decrease in other liabilities in Q1 2025 was primarily due to the usage of restructuring provisions amounting to €1,259k for severance payments[30] - The comparative period in 2024 was affected by an additional charge of €17,000k recorded in cost of sales related to a dispute with a former contract manufacturing organization (CMO), Celonic[31] - The income tax expense for Q1 2025 was €429k, primarily attributable to deferred tax expenses of CureVac N.V[32] Earnings Per Share Basic and diluted net loss per share improved to €0.23 in Q1 2025, with potentially dilutive securities excluded due to the company's net loss position Earnings Per Share Comparison | Metric | Q1 2024 | Q1 2025 | | :--- | :--- | :--- | | Net loss per share (basic and diluted) | (€0.31) | (€0.23) | | Weighted average shares (basic) | 224,349,604 | 225,150,339 | - For Q1 2025, 7,199,489 share options and RSUs were excluded from the diluted EPS calculation because their effect would have been antidilutive[36] Related Party Disclosures dievini Hopp BioTech holding GmbH & Co. KG, the de facto parent, holds approximately 37% of CureVac's shares, with related party transactions having no significant financial impact in Q1 2025 - dievini Hopp BioTech holding GmbH & Co. KG is the de facto parent of the Group, holding approximately 37% of shares and voting rights[37] - Transactions with dievini and its related entities had no significant impact on the financial statements for the three months ended March 31, 2025[38]