Shares of CureVac (CVAC) - Get CureVac Report dropped on Tuesday after the drugmaker said it was ending development of an mRNA-based Covid-19 vaccine and withdrawing its application to the European Medicines Agency for emergency use of the product.
Instead, the company said it will focus its Covid-19 vaccine efforts toward developing second-generation mRNA vaccine candidates in collaboration with GlaxoSmithKline (GSK) - Get GlaxoSmithKline plc Sponsored ADR Report.
"The global fight against Covid-19 continues, and we remain committed to making a difference with a safe and efficacious vaccine," CureVac Chief Executive Franz-Werner Haas said in a statement.
"This goal has not changed, but the requirements to effectively address the virus and emerging variants have changed."
CureVac shares at last check fell 5.6% to $40.77. The stock on Tuesday has traded as low as $37.54, down 13%.
Based on its communications with the EMA, the company said, the earliest potential approval for its Covid vaccine would have come in the second quarter of 2022.
Meanwhile, partner GSK, the U.K. health-care giant, says it has seen strong improvement in the its second-generation mRNA vaccines over the now abandoned previous vaccine.
Shares of the Tubingen, Germany, drug company jumped earlier this year after it reported progress with trials of its Covid vaccine candidate. The company had been planning a Phase 1 clinical trial to start in the fourth quarter.