SAN CARLOS, Calif. - Vaxcyte, Inc. (NASDAQ: PCVX), a clinical-stage vaccine company, has launched a public offering of $1.0 billion in common stock and pre-funded warrants, the company disclosed today. The underwriters will also have a 30-day option to purchase up to an additional $150 million in common stock.
This move comes as Vaxcyte continues to develop vaccines against bacterial diseases, including its lead candidates VAX-31 and VAX-24, which are aimed at preventing invasive pneumococcal disease. The offering is contingent on market conditions, and there is no certainty regarding the completion or terms of the offering.
A group of financial institutions, including BofA Securities, Jefferies, Leerink Partners, Goldman Sachs (NYSE:GS) & Co. LLC, Evercore ISI, Guggenheim Securities, and Mizuho, are managing the offering as joint book-runners.
The securities being offered are part of a shelf registration statement filed with the Securities and Exchange Commission (SEC) on May 24, 2024, which became automatically effective upon filing. The preliminary prospectus supplement and accompanying prospectus will be available on the SEC's website.
Vaxcyte's focus lies in the creation of broad-spectrum conjugate and novel protein vaccines to prevent or treat bacterial infectious diseases. The company's innovative approach leverages modern synthetic techniques, including the XpressCF™ cell-free protein synthesis platform, to potentially improve upon the efficacy and production of vaccines.
The announcement is based on a press release statement and is intended to provide information about Vaxcyte's financial activities and ongoing efforts to combat bacterial diseases through vaccine innovation.
In other recent news, Vaxcyte has reported positive topline results from a Phase 1/2 study of its pneumococcal conjugate vaccine candidate, VAX-31. The vaccine demonstrated satisfactory immunogenicity criteria for all 31 serotypes at middle and high doses. Financial services firms BTIG and Jefferies have raised their price targets for Vaxcyte to $160 and $129 respectively, maintaining Buy ratings following these promising results.
Additionally, Vaxcyte has appointed John P. Furey to its Board of Directors, who received a nonstatutory stock option grant valued at $800,000 and will receive an annual equity award worth $450,000. This is part of the recent changes in the company's corporate structure.
Vaxcyte's VAX-31 vaccine has also been rated Outperform by Mizuho, and the company plans to advance VAX-31 to a Phase 3 program for adult immunization by mid-2025. These recent developments reflect the ongoing progress and high expectations for Vaxcyte in the vaccine industry.
InvestingPro Insights
As Vaxcyte, Inc. (NASDAQ: PCVX) embarks on a significant public offering, potential investors and stakeholders may be curious about the company's financial health and market performance. According to InvestingPro data, Vaxcyte holds a market capitalization of $12.35 billion, but with a negative P/E ratio of -24.32, reflecting the company's current lack of profitability. This is further supported by a gross profit of -$75 million over the last twelve months as of Q2 2024.
InvestingPro Tips reveal that while Vaxcyte maintains a stronger cash position than debt on its balance sheet, analysts have concerns about its profitability. Two analysts have revised their earnings estimates downwards for the upcoming period, and there's a consensus that the company will not be profitable this year. Despite these challenges, Vaxcyte has demonstrated a high return over the last year, with a total price return of 52.09%.
Investors may also find reassurance in the company's liquidity, as Vaxcyte's liquid assets exceed its short-term obligations. This could be a critical factor in sustaining operations and funding research and development as the company continues to innovate in the vaccine space. For those interested in a more in-depth analysis, there are additional InvestingPro Tips available at https://www.investing.com/pro/PCVX, offering further insights into Vaxcyte's financial metrics and market standing.
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