Daily Management Review

Cost of COVID-19 vaccine developer drops 50% after failed trial


German pharma company CureVac lost more than half its market value after its coronavirus vaccine showed only 47% efficacy. The company's development was previously backed by Elon Musk.

The German pharmaceutical company CureVac has lost more than half of its market value after its coronavirus vaccine demonstrated only 47% efficacy in an interim trial. This was reported by Bloomberg.
CureVac shares were down more than 52% in trading in Germany and the company's value declined by nearly $9.6 billion, the agency wrote. The stock was down 43.88% at the premarket in the United States. Most of CureVac's shares are traded on the Nasdaq, Bloomberg notes.
CureVac recruited about 40,000 volunteers from 10 countries in Latin America and Europe to participate in a study of its vaccine. In a second interim study, the company identified 134 cases of COVID-19 infection. CureVac declined to say how many people got sick among those who received the vaccine or how many received a placebo, Bloomberg reported.
CureVac's development is based on matrix RNA technology and turns body cells into "vaccine production factories," Bloomberg notes. Vaccines based on this technology have been created by Moderna as well as Pfizer and BioNtech. Moderna reported efficacy of its vaccine above 94% last year, and Pfizer and BioNtech reported efficacy above 91% in April.
Tesla and SpaceX founder Ilon Musk had an optimistic outlook on the CureVac vaccine, Bloomberg recalls. In April, he wrote on Twitter that the company appeared to be "months away from regulatory approval". Later, however, he deleted that tweet. Last summer, the billionaire reported that Tesla was building RNAi "microfactories" for CureVac as part of a "third-party project".

source: bloomberg.com