Vaxcyte Announces Commencement of Proposed Public Offering of Common Stock and Pre-Funded Warrants

Rhea-AI Summary

Vaxcyte (Nasdaq: PCVX), a clinical-stage vaccine innovation company, has announced the commencement of a $1.0 billion underwritten public offering of its common stock and pre-funded warrants. The company plans to grant underwriters a 30-day option to purchase up to an additional $150.0 million of shares. BofA Securities, Jefferies, Leerink Partners, Goldman Sachs & Co. , Evercore ISI, Guggenheim Securities, and Mizuho are acting as joint book-running managers for the offering. The offering is subject to market conditions, and its completion, size, and terms are not guaranteed. A shelf registration statement has been filed with the SEC, and a preliminary prospectus supplement and accompanying prospectus will be available on the SEC's website.

Positive

• Large-scale offering of $1.0 billion indicates strong investor interest
• Additional 30-day option for underwriters to purchase $150.0 million in shares
• Involvement of multiple prominent financial institutions as joint book-running managers

Negative

• Potential dilution of existing shareholders' stock value
• Uncertainty regarding the completion, size, and terms of the offering
• Market conditions may affect the success of the offering

Insights

Financial Analyst

Vaxcyte's $1.0 billion public offering of common stock and pre-funded warrants is a significant capital raise, indicating the company's need for substantial funding. This move could dilute existing shareholders but also provides important resources for advancing their vaccine pipeline. The additional $150.0 million option for underwriters suggests confidence in market demand. The involvement of major investment banks as joint book-running managers lends credibility to the offering. However, investors should note the cautionary language regarding the offering's completion, size and terms. This capital injection could accelerate Vaxcyte's clinical programs but also increases financial obligations. The market's reaction will be important to watch, as it will reflect investor confidence in Vaxcyte's long-term potential and current valuation.

Biotech Industry Expert

This substantial capital raise by Vaxcyte underscores the capital-intensive nature of vaccine development, particularly for a clinical-stage company. The $1.0 billion target suggests Vaxcyte is preparing for significant clinical trial expansions or potential commercialization efforts. Their focus on high-fidelity vaccines for bacterial diseases addresses an important medical need, which could attract investor interest. However, the offering's size relative to Vaxcyte's market cap implies considerable dilution, which existing shareholders should carefully evaluate. The success of this offering could position Vaxcyte as a stronger player in the competitive vaccine market, potentially accelerating their development timeline. Investors should closely monitor upcoming clinical trial results and regulatory milestones to assess the potential return on this substantial investment.

Legal Expert

The regulatory compliance aspects of this offering are noteworthy. Vaxcyte's use of a shelf registration statement that became automatically effective upon filing streamlines the offering process. The company's commitment to file a preliminary prospectus supplement and accompanying prospectus with the SEC demonstrates adherence to regulatory requirements. The explicit disclaimer that the press release does not constitute an offer to sell or solicitation to buy securities shows legal prudence. The provision of multiple ways to obtain the prospectus ensures investor accessibility to important information. However, the conditional language regarding the offering's completion highlights the legal and market uncertainties involved. Investors should carefully review the full prospectus when available to understand the complete terms, risks and implications of this significant offering.

SAN CARLOS, Calif., Sept. 03, 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, today announced that it has commenced an underwritten public offering of $1.0 billion of its common stock and pre-funded warrants. All shares of common stock and pre-funded warrants to be sold in the offering will be offered by Vaxcyte. Vaxcyte intends to grant the underwriters a 30-day option to purchase up to an additional $150.0 million of shares of its common stock offered in the public offering (including shares underlying the pre-funded warrants). The offering is subject to market and other conditions, and there can be no assurance as to whether or when the offering may be completed, or as to the actual size or terms of the offering.

BofA Securities, Jefferies, Leerink Partners, Goldman Sachs & Co. LLC, Evercore ISI, Guggenheim Securities and Mizuho are acting as joint book-running 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 May 24, 2024. A preliminary prospectus supplement and accompanying prospectus relating to the offering will be filed with the SEC and will be available on the SEC’s website, located at www.sec.gov. Copies of the preliminary prospectus supplement and the accompanying prospectus relating to this offering may be obtained, when available, 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; Goldman Sachs & Co. LLC, Attention: Prospectus Department, 200 West Street, New York, NY 10282, by email at prospectus-ny@ny.email.gs.com or by phone at (866) 471-2526; 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; Guggenheim Securities, LLC, Attention: Equity Syndicate Department, 330 Madison Avenue, 8th Floor, New York, NY 10017, by telephone at (212) 518-9544, or by email at GSEquityProspectusDelivery@guggenheimpartners.com; and Mizuho Securities USA LLC, 1271 Avenue of the Americas, Third Floor, New York, NY 10021, or by email at Us-ecm@mizuhogroup.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. VAX-31 is a Phase 3-ready 31-valent, carrier-sparing pneumococcal conjugate vaccine (PCV) being developed for the prevention of invasive pneumococcal disease (IPD) in adults and infants and is the broadest-spectrum PCV candidate in the clinic today. VAX-24, the Company’s 24-valent PCV candidate, is designed to cover more serotypes than any infant PCV on-market and is currently being evaluated in a Phase 2 infant study. Both VAX-31 and VAX-24 are designed to improve upon the standard-of-care PCVs by covering the serotypes in circulation that are responsible for a significant portion of IPD and are associated with high case-fatality rates, antibiotic resistance and meningitis, while maintaining coverage of previously circulating strains that are currently contained through continued vaccination practice.

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 candidate 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:

Patrick Ryan, Executive Director, Corporate Communications
Vaxcyte, Inc.
415-606-5135
media@vaxcyte.com

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

FAQ

What is the size of Vaxcyte's (PCVX) proposed public offering?

Vaxcyte (PCVX) has announced a proposed public offering of $1.0 billion of its common stock and pre-funded warrants, with an additional 30-day option for underwriters to purchase up to $150.0 million of shares.

Who are the joint book-running managers for Vaxcyte's (PCVX) public offering?

The joint book-running managers for Vaxcyte's (PCVX) public offering are BofA Securities, Jefferies, Leerink Partners, Goldman Sachs & Co. , Evercore ISI, Guggenheim Securities, and Mizuho.

When was the shelf registration statement for Vaxcyte's (PCVX) offering filed with the SEC?

The shelf registration statement for Vaxcyte's (PCVX) offering was filed with the SEC and automatically became effective on May 24, 2024.

What type of company is Vaxcyte (PCVX)?

Vaxcyte (PCVX) is described as a clinical-stage vaccine innovation company that engineers high-fidelity vaccines to protect against bacterial diseases.