Vaxcyte Announces Closing of $690 Million Public Offering Including Full Exercise of Underwriters’ Option to Purchase Additional Shares

Rhea-AI Summary

Vaxcyte (Nasdaq: PCVX) announced the completion of an underwritten public offering of 17,812,500 shares of common stock at $32.00 per share, along with pre-funded warrants for 3,750,000 shares at $31.999 each. The offering raised approximately $690 million in gross proceeds. The transaction included the underwriters' full exercise of their option for an additional 2,812,500 shares. BofA Securities and others acted as joint book-running managers. Vaxcyte focuses on innovative vaccines to combat bacterial diseases, with its lead candidate VAX-24 targeting invasive pneumococcal disease.

Positive

• Raised approximately $690 million in gross proceeds from the public offering.
• Funds are intended to support Vaxcyte's vaccine development efforts, including its lead candidate VAX-24.

Negative

• Dilution of existing shareholders due to the issuance of new shares.

SAN CARLOS, Calif., Oct. 28, 2022 (GLOBE NEWSWIRE) -- Vaxcyte, Inc. (Nasdaq: PCVX), a clinical-stage vaccine innovation company engineering high-fidelity vaccines to protect humankind from the consequences of bacterial diseases, announced today the closing of its previously announced underwritten public offering of 17,812,500 shares of common stock at a public offering price of $32.00 per share and pre-funded warrants to purchase 3,750,000 shares of common stock at a public offering price of $31.999 per underlying share. This includes the exercise in full by the underwriters of their option to purchase up to 2,812,500 additional shares of common stock at the public offering price per share, less underwriting discounts and commissions. The aggregate gross proceeds to Vaxcyte from this offering were approximately $690.0 million, before deducting underwriting discounts and commissions and other offering expenses payable by Vaxcyte.

BofA Securities, Jefferies, SVB Securities, Evercore ISI and Guggenheim Securities acted as joint book-running managers for the offering. Cantor acted as lead manager for the offering. Needham & Company and BTIG acted as co-managers for the offering.

A shelf registration statement relating to the offered securities was filed with the Securities and Exchange Commission (SEC), and was automatically effective upon filing on July 2, 2021. A final prospectus supplement and accompanying prospectus relating to the offering has been filed with the SEC and is available on the SEC’s website, located at www.sec.gov. Copies of the final prospectus supplement and the accompanying prospectus relating to this offering may be obtained from BofA Securities NC1-004-03-43, Attention: Prospectus Department, 200 North College Street, 3rd Floor, Charlotte, North Carolina 28255 or by email at dg.prospectus_requests@bofa.com; Jefferies LLC, Attention: Equity Syndicate Department, 520 Madison Avenue, New York, New York 10022, by telephone at 1-877-821-7388, or by email at Prospectus_Department@Jefferies.com; SVB Securities LLC, Attention: Syndicate Department, 53 State Street, 40th Floor, Boston, MA 02109, by email at syndicate@svbsecurities.com or by phone at (800) 808-7525, ext. 6105; Evercore Group L.L.C., Attention: Equity Capital Markets, 55 East 52nd Street, 35th Floor, New York, New York 10055, by telephone at 1-888-474-0200 or by email at ecm.prospectus@evercore.com; and Guggenheim Securities, LLC, Attention: Equity Syndicate Department, 330 Madison Avenue, 8th Floor, New York, New York 10017, by telephone at (212) 518-9544, or by email at EquityProspectusDelivery@guggenheimpartners.com.

This press release shall not constitute an offer to sell or a solicitation of an offer to buy these securities nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

About Vaxcyte
Vaxcyte is a vaccine innovation company engineering high-fidelity vaccines to protect humankind from the consequences of bacterial diseases. The Company is developing broad-spectrum conjugate and novel protein vaccines to prevent or treat bacterial infectious diseases. Vaxcyte’s lead candidate, VAX-24, is a 24-valent, broad-spectrum pneumococcal conjugate vaccine being developed for the prevention of invasive pneumococcal disease. Vaxcyte is re-engineering the way highly complex vaccines are made through modern synthetic techniques, including advanced chemistry and the XpressCF™ cell-free protein synthesis platform, exclusively licensed from Sutro Biopharma, Inc. Unlike conventional cell-based approaches, the Company’s system for producing difficult-to-make proteins and antigens is intended to accelerate its ability to efficiently create and deliver high-fidelity vaccines with enhanced immunological benefits. Vaxcyte’s pipeline also includes VAX-XP, a PCV with coverage of 31 strains; VAX-A1, a prophylactic vaccine candidate designed to prevent Group A Strep infections; and VAX-PG, a therapeutic vaccine candidate designed to slow or stop the progression of periodontal disease. Vaxcyte is driven to eradicate or treat invasive bacterial infections, which have serious and costly health consequences when left unchecked.

Contacts:

Andrew Guggenhime, President and Chief Financial Officer
Vaxcyte, Inc.
650-837-0111
investors@vaxcyte.com

Janet Graesser, Vice President, Corporate Communications and Investor Relations
Vaxcyte, Inc.
917-685-8799
media@vaxcyte.com

FAQ

What is Vaxcyte's public offering amount and details?

Vaxcyte completed a public offering of 17,812,500 shares at $32.00 per share, raising approximately $690 million.

What is the purpose of Vaxcyte's recent funding?

The funding will support the development of Vaxcyte's vaccine candidates, including VAX-24.

What impact does the public offering have on Vaxcyte's shareholders?

The public offering may lead to share dilution for existing shareholders due to the increase in total shares outstanding.

Who managed Vaxcyte's public offering?

BofA Securities, Jefferies, SVB Securities, Evercore ISI, and Guggenheim Securities served as joint book-running managers.