CureVac B.V. (CVAC) stock is soaring 5.17% in Tuesday's trading session, despite reporting a significant year-on-year decrease in Q1 2025 revenues. The biotech company's shares are rallying on the back of its robust financial position and positive long-term outlook.

CureVac reported Q1 2025 revenue of EUR 900 thousand, down from the previous year. The company attributed this decline primarily to lower revenues from GSK following the restructuring of their partnership in July 2024 from a collaboration into a license agreement, as well as reduced sales to CRISPR Therapeutics. Despite the revenue drop, investors appear to be focusing on CureVac's strong financial health.

The company highlighted its strong cash and cash equivalents position of EUR 438.3 million as of March 31, 2025. More importantly, CureVac reaffirmed its expected cash runway into 2028, providing a significant buffer for its ongoing operations and research initiatives. This extended runway, coupled with the substantial cash reserves, seems to have boosted investor confidence in the company's ability to fund its operations and potential breakthroughs in the coming years, driving the stock's impressive gain today.