Vaxcyte Announces Closing of $862.5 Million Public Offering Including Full Exercise of Underwriters’ Option to Purchase Additional Shares

Rhea-AI Summary

Vaxcyte, Inc. (PCVX) closed its underwritten public offering of common stock, generating approximately $862.5 million in gross proceeds. The offering included over 12.6 million shares of common stock and pre-funded warrants to purchase additional shares, with joint book-running managers and lead managers overseeing the process. The company filed a shelf registration statement with the SEC, and the final prospectus supplement and accompanying prospectus are available on the SEC's website.

Insights

Financial Analyst

The completion of Vaxcyte, Inc.'s substantial public offering, raising approximately $862.5 million, signifies a robust capital infusion for the company. This influx of funds is critical, as it provides Vaxcyte with the financial flexibility to advance its pipeline of high-fidelity vaccines. Investors may view this successful capital raise as a positive indicator of market confidence in the company's potential to deliver on its clinical promises.

It's worth noting that the underwriters fully exercised their option to purchase additional shares, which can be interpreted as a strong demand for the offering. This level of demand could potentially lead to a favorable perception among investors regarding the company's valuation and future prospects. However, it's also important to consider that the introduction of over 12 million new shares could lead to dilution of existing shareholders' equity.

Market Research Analyst

From a market perspective, Vaxcyte's successful fundraising through a public offering could indicate a healthy appetite for biotech investments, despite the inherent risks associated with the sector. The participation of multiple reputable financial institutions as joint book-running managers and lead managers reflects a strong underwriting process and potentially broadens the investor base.

The capital raise may also have a ripple effect on the biotech sector, possibly encouraging other firms to consider public offerings. However, the long-term impact on Vaxcyte's stock will depend on how effectively the company deploys the raised capital towards its R&D and whether it can meet its clinical development milestones.

Medical Research Analyst

The significance of Vaxcyte's successful capital raise extends beyond immediate financial implications. The funds are likely earmarked for the progression of their vaccine pipeline, which is poised to address various bacterial diseases. The development and commercialization of such vaccines could have far-reaching public health benefits, potentially reducing the burden of disease and associated healthcare costs.

For stakeholders, the key will be monitoring the company's ability to translate this capital into tangible clinical outcomes. The efficacy and safety data from upcoming trials will be critical in assessing the potential impact of their vaccine candidates on the market and in the healthcare industry.

SAN CARLOS, Calif., Feb. 02, 2024 (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 12,695,312 shares of common stock at a public offering price of $64.00 per share and pre-funded warrants to purchase 781,250 shares of common stock at a public offering price of $63.999 per underlying share. This includes the exercise in full by the underwriters of their option to purchase up to 1,757,812 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 $862.5 million, before deducting underwriting discounts and commissions and other offering expenses payable by Vaxcyte.

BofA Securities, Jefferies, Leerink Partners LLC, Evercore ISI, Guggenheim Securities and Cantor acted as joint book-running managers for the offering. BTIG and Needham & Company acted as lead 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 NC1-022-02-25, Attention: Prospectus Department, 201 North Tryon Street, Charlotte, North Carolina 28255-0001 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; Leerink Partners LLC, Attention: Syndicate Department, 53 State Street, 40th Floor, Boston, MA 02109, by email at syndicate@leerink.com or by phone at (800) 808-7525, ext. 6105; and 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.

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 Phase 3-ready 24-valent, broad-spectrum, carrier-sparing pneumococcal conjugate vaccine (PCV) being developed for the prevention of invasive pneumococcal disease. VAX-31, the Company’s next-generation 31-valent PCV, is the broadest-spectrum PCV candidate in the clinic today.

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-A1, a prophylactic vaccine candidate designed to prevent Group A Strep infections; VAX-PG, a therapeutic vaccine candidate designed to slow or stop the progression of periodontal disease; and VAX-GI, a vaccine program designed to prevent Shigella. Vaxcyte is driven to eradicate or treat invasive bacterial infections, which have serious and costly health consequences when left unchecked.

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

Jennifer Zibuda, Senior Director, Investor Relations
Vaxcyte, Inc.
860-729-8902
investors@vaxcyte.com

FAQ

How many shares were included in Vaxcyte's underwritten public offering?

Vaxcyte's underwritten public offering included 12,695,312 shares of common stock.

What was the public offering price per share for Vaxcyte's underwritten public offering?

The public offering price per share was $64.00 for common stock and $63.999 for pre-funded warrants.

Who were the joint book-running managers for Vaxcyte's offering?

BofA Securities, Jefferies, Leerink Partners LLC, Evercore ISI, Guggenheim Securities, and Cantor acted as joint book-running managers for the offering.

How much gross proceeds did Vaxcyte generate from the offering?

Vaxcyte generated approximately $862.5 million in gross proceeds from the underwritten public offering.

Where can the final prospectus supplement and accompanying prospectus be obtained?

Copies of the final prospectus supplement and the accompanying prospectus can be obtained from the SEC's website or directly from the managing firms involved in the offering.