SAN CARLOS, Calif. - Vaxcyte, Inc. (NASDAQ:PCVX), a clinical-stage vaccine innovation company, announced the pricing of its underwritten public offering which includes shares of common stock and pre-funded warrants. The company is offering 10,937,500 shares of common stock at a price of $64.00 each and pre-funded warrants to purchase 781,250 shares of common stock, with the warrants priced at $63.999 each. The proceeds from this offering are expected to be approximately $750 million before fees and expenses are deducted.
The pre-funded warrants have an exercise price of $0.001 per share. In addition to the shares and warrants being sold, Vaxcyte has granted the underwriters a 30-day option to buy up to an additional 1,757,812 shares at the public offering price, minus the underwriting discounts and commissions. The offering is expected to close on February 2, 2024, contingent upon customary closing conditions.
Several financial institutions are involved in managing the offering, with BofA Securities, Jefferies, Leerink Partners LLC, Evercore ISI, Guggenheim Securities, and Cantor functioning as joint book-running managers. Additionally, BTIG and Needham & Company are serving as lead managers. The offering is made by means of a prospectus supplement and accompanying prospectus, which are filed with the SEC and available on its website.
Vaxcyte's primary focus is on developing vaccines to prevent or treat bacterial infectious diseases. Its leading candidate, VAX-24, is a pneumococcal conjugate vaccine ready for Phase 3 trials, designed to prevent invasive pneumococcal disease. The company is also working on VAX-31, a 31-valent pneumococcal conjugate vaccine, along with other vaccine candidates for various bacterial infections.
This planned public offering aims to fund Vaxcyte's continued vaccine development efforts. The information for this article is based on a press release statement from Vaxcyte, Inc.
InvestingPro Insights
As Vaxcyte, Inc. (NASDAQ:PCVX) progresses with its public offering, the latest data from InvestingPro provides a deeper financial context for investors considering the company's stock. Vaxcyte holds a market capitalization of approximately $6.41 billion, reflecting its significant potential in the vaccine innovation space. Despite a challenging financial performance with a negative P/E ratio of -20.47, the company's strong cash position is a solid foundation for its ongoing research and development activities. Specifically, Vaxcyte's balance sheet benefits from holding more cash than debt, which is a reassuring sign for investors looking at the long-term viability of the company.
InvestingPro Tips reveal that Vaxcyte is trading near its 52-week high, with a price close to 98% of this peak, indicating a robust market confidence in the stock. This is supported by a remarkable 40% three-month price total return, showcasing significant investor interest. However, analysts have tempered expectations, with earnings revisions pointing downwards and projections of net income dropping this year. The company is not expected to be profitable within the current year, and it does not pay dividends, which might be a consideration for income-focused investors.
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