We feel now is a pretty good time to analyse CureVac N.V.'s (NASDAQ:CVAC) business as it appears the company may be on the cusp of a considerable accomplishment. CureVac N.V., a clinical-stage biopharmaceutical company, focuses on developing various transformative medicines based on messenger ribonucleic acid (mRNA). With the latest financial year loss of €412m and a trailing-twelve-month loss of €313m, the US$2.7b market-cap company alleviated its loss by moving closer towards its target of breakeven. The most pressing concern for investors is CureVac's path to profitability – when will it breakeven? Below we will provide a high-level summary of the industry analysts’ expectations for the company.
CureVac is bordering on breakeven, according to the 5 American Biotechs analysts. They expect the company to post a final loss in 2023, before turning a profit of €64m in 2024. Therefore, the company is expected to breakeven roughly 2 years from now. In order to meet this breakeven date, we calculated the rate at which the company must grow year-on-year. It turns out an average annual growth rate of 39% is expected, which is rather optimistic! Should the business grow at a slower rate, it will become profitable at a later date than expected.
Given this is a high-level overview, we won’t go into details of CureVac's upcoming projects, though, take into account that generally biotechs, depending on the stage of product development, have irregular periods of cash flow. This means that a high growth rate is not unusual, especially if the company is currently in an investment period.
One thing we’d like to point out is that CureVac has no debt on its balance sheet, which is quite unusual for a cash-burning biotech, which usually has a high level of debt relative to its equity. The company currently operates purely off its shareholder funding and has no debt obligation, reducing concerns around repayments and making it a less risky investment.
This article is not intended to be a comprehensive analysis on CureVac, so if you are interested in understanding the company at a deeper level, take a look at CureVac's company page on Simply Wall St. We've also compiled a list of important aspects you should look at:
Historical Track Record: What has CureVac's performance been like over the past? Go into more detail in the past track record analysis and take a look at the free visual representations of our analysis for more clarity.
Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on CureVac's board and the CEO’s background.
Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore our free list of these great stocks here.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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