CureVac vaccine not very effective Crash of a Bearer of hope

Status: 06/17/2021 12:31 p.m.

CureVac’s vaccine proves far less effective than hoped, with the biotech company’s stock plummeting. What does this mean for the vaccination campaign and German taxpayers?

From Angela Göpfert, tagesschau.de

For the company CureVac and its owners, dramatic scenes have taken place in the past few hours. The price of the Tübingen-based company listed on the US technology exchange Nasdaq had already halved in after-hours trading on the US stock exchange on Wednesday. This morning, the CureVac share then rushed in German retail by up to 52.4 percent.

Eight billion euros destroyed on the stock exchange

This destroyed around eight billion euros in market value within a few minutes. This melted down from over 15 to a good seven billion euros. The drastic course reaction shows how surprisingly, despite all previous doubts, such devastating study data as CureVac has now presented, came in the end – and how serious the consequences could be.

On Wednesday night, CureVac announced that its first-generation vaccine candidate was CVnCoV only an effectiveness of 47 percent against a Covid 19 disease of any severity. The company thus missed the intended statistical success criteria for approval.

Completely out of the vaccination campaign?

The study is to be continued, and the degree of effectiveness could change with higher case numbers. However, if the current trend continues, approval is unlikely. In this case, experts say CVnCoV would be a total flop for the company. For the German vaccination campaign, CureVac is therefore canceled until further notice. “According to these study results, it will be extremely difficult for CureVac to play a role at all in the current vaccination campaign”, told LBBW analyst Timo Kürschner tagesschau.de . According to the federal government, the setback for the Tübingen company does not upset the vaccinations in Germany. “This announcement has no effect on the speed of our vaccination campaign”said a spokesman for the federal health ministry.

Other manufacturers are still catching up

Industry observers believe that speed is just as important in vaccine development as it is in drug development. “Late bloomers like CureVac only have a chance if they have a better effect profile or fewer side effects”, explains pharmaceutical expert Kürschner.

“The more time that elapses, the more efficient the production of vaccines that have already been approved will be”says the pharmaceutical expert. “BioNTech & Co. are then more and more able to serve the required delivery quantities.” His conclusion: “We could get to a point where you actually no longer need the CureVac vaccine because the vaccination campaign is already so advanced.”

Hundreds of millions from the federal government

The severe setback for CureVac meanwhile has effects beyond the current vaccination campaign. It meets the German taxpayers – after all, the federal government has a stake of around 16 percent in the company and has supported vaccine development with a special program worth several hundred million euros. It is also a debacle for SAP co-founder Dietmar Hopp, who holds almost 50 percent of the shares.

Last but not least, the CureVac price disaster hits the countless private investors who have invested their money in the share. The paper of the company, which is legally based in the Netherlands, has been one of the most traded foreign stocks in the past few weeks on the Stuttgart Stock Exchange, where many private investors cavort.

Recently increased warning signs

Recently, there had been more and more indications that the CureVac vaccine could fail for the time being. Even when Health Minister Jens Spahn, according to media reports, deleted CureVac from the federal government’s planning for the current vaccination campaign, this could hardly affect the share.

The high market capitalization compared to rival companies was also a warning sign: Before the current price crash, CureVac had a higher market value than Novavax. The US manufacturer had already reported a Phase III study on Monday, according to which its vaccine had a has a high effectiveness of 90 percent .

Often high risk in the industry

For CureVac and its owners this is now the “Worst case” of a biotech company. At the same time, the CureVac case also shows the general risks facing the industry. Companies in this industry usually have very few active ingredients in their pipeline. If one then fails – for whatever reason – it often has fatal consequences for the entire company.

LBBW expert Kürschner also sees CureVac “a prime example of the risks involved in investing in biotech companies”. However, Kürschner does not fear negative consequences of the CureVac events for the German biotech industry. After all, there is a positive counterexample in the country. “I’m sure: BioNTech’s success story will outshine the rather negative course at CureVac.”

Finance Minister Ho Duc Phoc works with the General Department of Taxation. The period of 2021 – 2025 is expected to collect about 6,558,500 billion VND On the afternoon of April 23, the Ministry of Finance held a conference to report on the implementation of the task of State budget revenue management (state budget) held at the headquarters of the General Department of Taxation. Director General of the General Department of Taxation Cao Anh Tuan affirmed that the revenue structure of the tax sector is becoming more and more sustainable, with the increasing proportion of domestic revenue in the total state budget revenue (on average, in the five-year period 2011-2015, it accounts for 67 , 5% of total state budget revenue, by 2020, accounts for about 85.6% – the set target is 84-85%). Meanwhile, crude oil revenue accounts for a decreasing proportion, from 12.9% on average in 2011-2015 period to 3.6% on average in 2016-2020 period. In which, the average rate of mobilization of state budget revenue in 5 years in the 2016-2020 period will reach 25.2% of GDP (the target of 23.5% of GDP), of which mobilization from taxes and fees approximately meets the set target. 21% of GDP. Regarding the State budget revenue target for the period 2021-2025 mentioned in the draft Financial Strategy for the period of 2021-2030, which is being submitted to the Ministry of Finance’s leaders for approval, in which, the General Department of Taxation sets targets on state budget revenue for the period of 2021-2025. paragraphs 2021-2025 as follows: First, the average rate of mobilization into the state budget in the period 2021-2025 will reach about 15-16% of GDP, of which mobilization from taxes and fees is about 13-14% of GDP. Second, the proportion of domestic revenue in total state budget revenue by 2025 will reach over 85% of total state budget revenue. Third, the proportion of crude oil revenue by 2025 will decrease to 1.4% of the total state budget revenue. In which, the expected state budget revenue collected by the tax authority in the period 2021-2025 has been reported to the National Assembly at the 10th session, the 14th National Assembly is expected to be about 6,558,500 billion VND, including: Crude oil revenue. VND 108,200 billion; Domestic revenue was VND 6,450,300 billion, of which, revenue excluding land use fees, dividends & profits, lottery, and the difference between State Bank revenues and expenditures was VND 5,311,600 billion. In addition, it is expected that the 5-year 2021-2025 collection to update the 5-year financial plan 2021-2025 has been coordinated by the General Department of Taxation and functional units to submit to the Ministry of Finance for updating the 5-year financial plan. 2021-2025. Accordingly, the estimated total state budget revenue managed by tax authorities in the five years period 2021-2025 is about VND 6,844,700 billion, 1.2 times higher than that of the 2016-2020 period; 286,200 billion higher than the expected revenue in the five years from 2021-2025 to report to the 10th session of the National Assembly, XIV National Assembly (6,558,500 billion). In the field of tax administration reform, General Director of the General Department of Taxation Cao Anh Tuan affirmed that the Tax Department is determined to reduce the time to implement tax administrative procedures to strive to be one of the leading countries by 2025. Southeast Asia is ranked as having a tax advantage. In which, striving: The rate of electronic tax declaration procedures at level 3 and 4 reaches at least 95%; The rate of online public services at levels 3 and 4 integrated with national public service portals reaches at least 70%. Director General Cao Anh Tuan reported at the Conference. Consider the regulation rate according to the specific mechanism of Ho Chi Minh City Speaking at the conference, the Minister of Finance Ho Duc Phoc noted important results in the management of state budget revenues in recent years. According to the Minister, in 2020, although the socio-economic situation of the country still faces many difficulties due to the Covid-19 pandemic, but with the drastic direction of the Party, National Assembly, Government, Prime Minister The Government and the entire Finance sector in general have made great efforts to fulfill their assigned political tasks. The Minister asked the leaders of the units under the Ministry of Finance to focus on leading, directing and meeting the task requirements in the new situation. In particular, it is necessary to regularly direct, review and evaluate cadres, civil servants and public employees as a basis for staff evaluation, ensuring good completion of assigned tasks. Minister Ho Duc Phoc requested the Tax Policy Department (Ministry of Finance) to preside over and coordinate with the General Department of Taxation and the General Department of Customs to advise early on the regulation rate according to the specific mechanism of Ho Chi Minh City, in order to avoid the improper application in the implementation process makes it difficult for the state budget management. The Minister noted that in the coming time, the taxation sector needs to focus on completing the estimate, this is the most important task, focusing on building and completing tax legislation, and strengthening the management of objects to combat revenue loss, especially in the fields of potential sectors such as electronic transactions, cross-border transactions, real estate, transfer pricing, transfer transactions. Tax Departments need to link with the land registration office; coordinating with banks to combat money laundering; Residential data connection; enhance propagation and settlement of complaints for taxpayers … In the field of tax consultancy, it is necessary to review and sum up and evaluate the effectiveness of tax agents. In particular, it is necessary to organize training and management organization in accordance with regulations. For the management of state budget revenues, the Minister suggested that the Taxation branch should strengthen the implementation of electronic taxation; expanding objects of electronic tax declaration; coordinating with authorities to determine financial obligations; Need to build big data about taxpayers and apply artificial intelligence in revenue control and build an electronic invoice database through which to promptly identify and handle incorrect invoices to promptly handle them. wrong issues. In addition, it is necessary to focus on researching and developing decrees and circulars on the implementation of e-invoices, proactively implementing appropriate tax and fee solutions to contribute to solving difficulties and supporting businesses. citizen. For tax data storage, it is necessary to continue to upgrade and modernize the server system, ensure the server operates 24/24 and have security and backup systems. At the same time, strengthen tax inspection and examination based on analysis of risk assessment data; strengthening professional capacity, inspecting and strictly enforcing violations and violations of the law; Promote international cooperation to combat tax evasion, create conditions to attract investment. Minister of Finance Ho Duc Phoc especially emphasized: “Promoting the tradition of construction and development, I hope that all units in the entire Finance sector continue to strengthen discipline, solidarity, creativity, and vigorously emulation for a comprehensive victory, exceeding the financial – budget targets and tasks, determined to strive to fulfill well the tasks assigned by the Party and State “.

Illustration. Source: Internet According to the US Federal Revenue Service (IRS), virtual currency needs to be taxed as an asset. When using virtual currency to trade, it also means that this type of asset is being sold. On the other hand, if the user is paid in bitcoins then that amount is valued as a taxable revenue. Almost every cryptocurrency transaction is taxable and requires registration. Despite the fact that bitcoin and other cryptocurrencies are virtual, they have a sizable impact on taxes in practice. Tax debtors will incur both interest and penalties, possibly even criminal prosecution in some cases. How does the IRS control the virtual currency tax? According to Mark Luscombe – a federal tax analyst at Wolters Kluwer Tax & Accounting, any business transactions over $ 600, whether issued to a non-employee or paid to an employee are required to be reported to the IRS. Additionally, at each individual income tax return, any federal taxpayer must honestly answer the question: “At any time in 2020, have received, sold, sent, or exchanged Or is there a financial gain in any virtual currency? “. Together with the US Department of Justice, the tax authorities are taking measures to ensure that people comply with regulations on taxes. The IRS has launched a “virtual currency tax compliance” campaign aimed at reaching and inspecting taxpayers extensively. In addition, the IRS sent documents to 10,000 people to remind citizens of their crypto-related tax obligations, urge them to check and revise their previous declarations if they owe taxes, interest or penalties. . States of the United States have tax electronic money transactions are not ? Cryptocurrency transactions in the US can be taxed. Most states do not have specific crypto legislation, meaning the majority of states will comply with the federal lead in income tax regulations. Any money people make from crypto investments or income payments will count towards the total personal income. Most states use the AGI (an individual’s gross income adjusted for allowable discounts) that federally regulates do. Cryptocurrency transactions continue to be taxed in 2021 By 2021, crypto dealers must report all of their business profits and losses. The tax on virtual currency will depend on the difference between a person’s virtual investment and earnings. If your virtual currency investment increases in value by the time the asset is sold, your earnings will be taxed as regular income. If the investment period is longer than one year, it is subject to capital gains tax. In addition, there is a loss on the sale, the loss of fixed capital can be offset by the gains that are incurred in other investments. The difference when using virtual money to pay Using bitcoin to pay also means that users are selling this property. Trading in bitcoin is likely to receive profit or loss in return. The IRS notes that Bitcoin’s rate is not anchored to any other currency, but entirely dependent on market supply and demand. Bitcoin is currently one of the purest free-market assets because it is freely traded in huge volumes globally without any control. Unlike credit cards, the cost of sending Bitcoin is completely voluntary by the sender (not the receiver). The higher the fee for sending Bitcoin, the more pre-processed the transaction is by the network. The fee for paying in Bitcoin is much cheaper than paying by credit card or wire transfer. The cost of sending money through Bitcoin is independent of the number of deposits, making Bitcoin very attractive to those who want to send money in bulk.