CureVac N.V. (CVAC) shares are soaring 5.17% in Tuesday's trading session, despite reporting a year-on-year decrease in Q1 2025 revenues. The biotechnology company's stock price surge appears to be driven by its robust cash position and reaffirmed long-term financial outlook.

CureVac reported Q1 2025 revenue of EUR 900,000, marking a significant decline from the previous year. The company attributed this decrease primarily to lower revenues from GSK following the restructuring of their partnership in July 2024, which transitioned from a collaboration to a license agreement. Additionally, reduced sales to CRISPR Therapeutics contributed to the revenue decline.

Despite the revenue setback, investors seem encouraged by CureVac's strong financial position. The company reported a cash and cash equivalents balance of EUR 438.3 million as of March 31, 2025. Moreover, CureVac reaffirmed its expected cash runway into 2028, signaling confidence in its ability to fund operations and research initiatives for the long term. This financial stability appears to be overshadowing the short-term revenue challenges, leading to the significant stock price increase.