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German biopharma firm CureVac B.V. (CVAC) went public last week, selling 13.33 million shares of their common stock at $16.00 per share and raising approximately $213 million in gross proceeds.

Tubingen, Germany-based CureVac was founded to create mRNA-mediated treatment options for cancers, viral diseases including Covid-19 and gene editing-based protein therapies.

The IPO transaction represented a win for CVAC, as it also sold EUR100 million in a concurrent private placement to major shareholder Dieter Hopp.

IPO proceeds will provide the firm with the resources to advance its ambitious pipeline of messenger RNA treatments as well as a potential SARS-CoV-2 vaccine through completion of Phase 3 trials later in 2020.

Below is the current status of the firm's pipeline:

Source: CureVac Registration Statement

Source: CureVac Registration Statement

It was likely the coronavirus element of the company’s pipeline that resulted in the stock’s huge performance on its first day of trading.

CVAC finished its first day of trading at $55.60, an increase of nearly 3.5x from its IPO pricing of $16.00.

In my pre-IPO opinion (Read It), I was strongly positive on the firm’s prospects due to its ‘comprehensive partnerships with major pharmaceutical companies and top academic organizations,’ which provides significant validation for the firm’s numerous programs.

Is the stock worth $55.60 per share, or is that just a momentum play by short-term, ‘hot money’ traders?

Hard to tell at this juncture, but I’m not touching the stock at these levels, which value the Phase 1 trial stage firm at nearly $10 billion.

While I wish CVAC well, the stock looks overbought based on promise rather than demonstrated results.