SAN CARLOS, Calif. - Vaxcyte, Inc. (NASDAQ:PCVX), a clinical-stage biotech firm focused on vaccine innovation, announced the completion of a significant public offering that raised approximately $1.5 billion. The company, known for its work on vaccines against bacterial diseases, sold over 12 million shares of common stock at $103 each, alongside pre-funded warrants to purchase additional shares.
The offering, which concluded this week, also saw the full exercise of an option by underwriters to acquire an additional 1.89 million shares. The transaction's success reflects investor confidence in Vaxcyte's mission to develop vaccines that combat various bacterial infections.
Leading investment banks, including BofA Securities, Jefferies, Leerink Partners, and Goldman Sachs (NYSE:GS) & Co. LLC, served as joint book-running managers for the offering. The sale was made possible by a shelf registration statement filed with the Securities and Exchange Commission on May 24, 2024, which became automatically effective upon filing.
Vaxcyte's vaccine pipeline includes several promising candidates, such as VAX-31, a 31-valent pneumococcal conjugate vaccine (PCV) ready for Phase 3 trials. VAX-24, another PCV with coverage for 24 serotypes, is currently undergoing a Phase 2 infant study. Both vaccines aim to improve on current PCVs by targeting serotypes associated with high case-fatality rates, antibiotic resistance, and meningitis.
The company employs modern synthetic techniques, including a cell-free protein synthesis platform, to develop its vaccines. This method is designed to expedite the production of complex proteins and antigens, potentially enhancing the efficacy of the vaccines.
The funds raised from this offering are expected to support the continued development of Vaxcyte's vaccine candidates and further the company's goal to address serious bacterial infections that pose significant health risks. This news is based on a press release statement from Vaxcyte, Inc.
In other recent news, Vaxcyte has been making significant strides with its pneumococcal conjugate vaccine candidate, VAX-31. Encouraging Phase 1/2 trial results led to an increased price target for Vaxcyte to $140 by BofA Securities, $160 by BTIG, and $129 by Jefferies, all of which maintained a Buy rating. The vaccine showed promising immunogenicity results in adults over 50, meeting statistical criteria for all 20 serotypes it shares with Pfizer’s Prevnar-20. Vaxcyte plans to progress VAX-31 into Phase 3 trials for adult indication by mid-2025.
Vaxcyte also announced a public offering of $1.0 billion in common stock and pre-funded warrants, managed by financial institutions including BofA Securities, Jefferies, and Goldman Sachs & Co. LLC. This coincides with the company's ongoing efforts to develop vaccines against bacterial diseases.
Furthermore, the company appointed John P. Furey to its Board of Directors, indicating recent changes in the company's corporate structure. These developments reflect the ongoing progress and high expectations for Vaxcyte in the vaccine industry.
InvestingPro Insights
Vaxcyte, Inc. (NASDAQ:PCVX) has recently completed a substantial public offering, signaling strong market confidence in its innovative vaccine development programs. The company's financial health and stock performance metrics, as provided by InvestingPro, offer further insights into its current market position. With a market capitalization of $12.45 billion, Vaxcyte stands as a significant player in the biotech industry. Despite the lack of profitability over the last twelve months, with an operating income of approximately -$577.16 million and a gross profit of -$75 million, the company's stock has seen impressive returns, including an increase of 120.67% over the past year.
InvestingPro Tips indicate that Vaxcyte holds more cash than debt on its balance sheet, which is a positive sign for investors looking for a company with a solid financial base. Additionally, the company's liquid assets exceed its short-term obligations, suggesting a comfortable liquidity position. These factors may contribute to the investor optimism reflected in the successful public offering.
However, it is worth noting that analysts do not anticipate Vaxcyte to be profitable this year, and two analysts have revised their earnings downwards for the upcoming period. Moreover, the stock is currently trading near its 52-week high and at a high Price / Book multiple of 6.27, which, along with an RSI suggesting overbought territory, could signal a cautious approach for potential investors.
For those interested in a deeper analysis, InvestingPro offers additional tips on Vaxcyte, which can be found at https://www.investing.com/pro/PCVX. These insights could provide valuable context for the company's recent financial moves and help investors make more informed decisions.
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