Vaxcyte, Inc. (PCVX) completed a $500 million underwritten public offering of common stock and pre‑funded warrants, with a 30‑day option for underwriters to purchase an additional $75 million of shares. The offering was priced at $50.00 per share, slightly below the trading price at the time of pricing, a common strategy to secure demand in a secondary offering.
The capital raised will strengthen Vaxcyte’s cash position as the company continues to invest heavily in the late‑stage development of its 31‑valent pneumococcal conjugate vaccine, VAX‑31, and other pipeline assets. VAX‑31 is the broadest‑spectrum PCV candidate in the clinic, currently in Phase 3 trials for adults and Phase 2 for infants, with top‑line data expected in 2026 and a planned Biologics License Application in 2027.
Vaxcyte’s financial statements show a cumulative deficit of approximately $1.9 billion and a quarterly burn rate that has exceeded $200 million, driven largely by research and development expenses that rose to $209.9 million in the third quarter of 2025. The company’s trailing‑twelve‑month operating cash flow was negative $542.15 million, underscoring the need for additional funding to sustain operations through the critical Phase 3 and regulatory submission phases.
The offering will also support the company’s manufacturing expansion, including a custom fill‑finish line in North Carolina, positioning Vaxcyte to meet commercial demand if VAX‑31 receives regulatory approval. Management emphasized that the capital raise is a necessary step to maintain the company’s long‑term growth prospects in a highly competitive vaccine market dominated by established players such as Pfizer and GSK.
Analysts have maintained positive ratings on Vaxcyte, citing the company’s strong pipeline progress and the potential market impact of a broader‑spectrum pneumococcal vaccine. The capital raise is viewed as a prudent move to extend the company’s runway into mid‑2028, given its current cash balance of roughly $2.7 billion as of September 30, 2025.
The equity sale will dilute existing shareholders, but the infusion of capital is expected to support Vaxcyte’s strategic objectives and enhance its competitive position in the pneumococcal vaccine market.
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