American enthusiasm about Modern (NASDAQ: MRNA) began earlier this year after the biotech launched its effort to develop a new vaccine for coronavirus. CureVac (NASDAQ: CVAC) has until recently not produced much buzz in the US – for good reason. The German biotech conducted its initial public offering on the Nasdaq stock market less than two weeks ago.
Is CureVac, the relative newbie for American investors, the more attractive biotech stock to buy now? Or is Moderna the better choice? Here’s how CureVac and Moderna stack up against each other.
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Compare their coronavirus vaccines
Both CureVac and Moderna developed candidates for coronavirus vaccines that use messenger RNA (mRNA) to stimulate the body to generate antibodies. But Moderna has made great strides in terms of clinical advancement.
The U.S. National Institutes of Health initiated a Phase 1 clinical study evaluating Moderna’s COVID-19 vaccine candidate mRNA-1273 in March. Positive results from this study were announced in May, with Moderna launching its own Phase 2 study later in the month. The coronavirus vaccine candidate is currently in pivotal phase 3 testing.
CureVac reported positive preclinical results for its lead COVID-19 vaccine candidate in May. The company received approvals from German and Belgian regulatory authorities in June to begin Phase 1 testing of the experimental mRNA vaccine. No results have yet been announced from this early stage study.
It is too early to know which of these faxes will be more effective and safer. However, CureVac could have one advantage in that its COVID-19 vaccine shows promise in works at very low doses (2 to 6 micrograms) compared to Moderna’s 100 microgram dose for mRNA-1273.
Look at the rest of their pipelines
The CureVac pipeline includes three other mRNA candidates in Phase 1 assays other than its coronavirus vaccine research vaccine. Two of those candidates are experimental cancer immunotherapists. One is targeted at non-minor lung cancer, while the other targets adenoid cystic carcinoma (a rare type of cancer that begins in the glands), advanced melanoma, and cancers of the head and neck.
The candidate CV7202 against rabies vaccine of the company seems to be particularly promising. In January, CureVac announced encouraging results from a Phase 1 study of the experimental vaccine.
Modern claims a much broader pipeline. It has three candidates in phase 2 testing: cytomegalovirus (CMV) vaccine mRNA-1647, personalized cancer vaccine mRNA-4157, and AZD8601, an experimental therapy targeting coronary artery disease. Modern works together Merck mRNA-4157 to develop and with AstraZeneca AZD8601 to be developed.
The biotech pipeline also includes 10 early-stage programs. Five of them are experimental mRNA vaccines for immunization against viruses including influenza and Zika.
Money applies
Neither CureVac nor Moderna is profitable at this point. This makes the cash positions of the companies especially important.
On that front, Moderna is the clear leader. It reported cash, cash equivalents and investments totaling $ 3.1 billion as of June 30, 2020. CureVac had 43.4 million euros (approximately $ 51 million) as of March 31, 2020. It later pursued $ 640 million in private financing and gross revenues from about $ 245 million with its IPO.
CureVac is also behind Moderna in landing key supply deals for its COVID-19 vaccine. The company recently announced that it was embarking on ‘exploratory talks’ with the European Commission on a purchase of up to 225 million doses of its vaccine.
Meanwhile, Moderna has won deals with the U.S. government totaling more than $ 2.5 billion. These deals include the supply of 100 million doses of mRNA-1273 with an option for the US to purchase up to 400 million doses.
The better choice
CureVac’s market cap is less than half the size of Moderna’s. However, I still think that Moderna is the better choice between these two on bio-tech files focused on coronavirus.
Moderna’s mRNA-1273 is further in clinical trials. The biotech pipeline beats the CureVac pipeline. Moderna is also in a stronger financial position to mark its COVID-19 vaccine (assuming it wins legal approvals) and to advance its other programs.
Keep your eyes on CureVac. But for me, Moderna is still on top now.
