CureVac stock downgraded to neutral by UBS after BioNTech acquisition

Published 26/06/2025, 08:00
CureVac stock downgraded to neutral by UBS after BioNTech acquisition

Investing.com - UBS downgraded CureVac (NASDAQ:CVAC) from Buy to Neutral on Thursday, lowering its price target to $5.50 from $12.00 following the company’s acquisition by BioNTech (NASDAQ:BNTX). According to InvestingPro data, CureVac maintains an EXCELLENT financial health score, with impressive gross profit margins of 87.6% and a strong 78% return over the past six months.

BioNTech announced on June 12 an agreement to acquire CureVac in an all-stock transaction valued at approximately $5.46 per share, representing a 55% premium to CureVac’s three-month volume weighted average price of about $3.53 as of June 11, 2025. The current trading price suggests the stock is fairly valued according to InvestingPro analysis, with 12 additional ProTips available to subscribers.

The deal values CureVac at a total equity value of approximately $1.25 billion and combines two companies with mRNA technology platforms. CureVac currently has mRNA oncology and infectious disease programs in its pipeline, including Phase 1 Part B data expected from its shared antigen immunotherapy CVGBM in glioblastoma in the second half of 2025. The company’s strong balance sheet shows a healthy current ratio of 7.65, with more cash than debt, positioning it well for continued R&D investment.

UBS noted that ongoing intellectual property litigation between the two companies in both the US and EU continues despite the acquisition agreement. An EU infringement hearing is scheduled for July 1, and a US trial is set for September 8. Get comprehensive insights and detailed analysis about CureVac’s litigation risks and financial outlook with InvestingPro’s exclusive research reports, available for over 1,400 US stocks.

The investment bank identified a potential risk to its Neutral view, citing that the similarity between the two companies’ platforms and assets could potentially complicate transaction approval.

In other recent news, CureVac has been at the center of several notable developments. BioNTech announced a definitive agreement to acquire CureVac in an all-stock transaction valued at approximately $1.25 billion, with the deal receiving regulatory clearance from U.S. and German authorities. This acquisition is expected to enhance BioNTech’s mRNA-based cancer immunotherapy research and development capabilities. Meanwhile, Jefferies downgraded CureVac’s stock from buy to hold, adjusting the price target to $5.00 due to this acquisition announcement. On the earnings front, JMP Securities maintained a Market Outperform rating with a $10.00 price target, noting CureVac’s slight outperformance in recent quarterly results and a robust cash reserve of €438 million.

In regulatory news, CureVac received FDA clearance for its Investigational New Drug application for CVHNLC, an mRNA-based therapy targeting lung cancer. The Phase 1 clinical study will assess the therapy’s safety and efficacy in combination with pembrolizumab. Additionally, CureVac’s management and supervisory boards have undergone changes, with new appointments and reappointments approved at the Annual General Meeting. The company also secured the reappointment of KPMG as its external auditor for the financial year 2026. These developments underscore CureVac’s ongoing progress in mRNA-based therapies and strategic corporate decisions.

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