Vaxcyte Prices $1 Bln In Concurrent Equity, Convertible Notes Offerings

(RTTNews) - Vaxcyte, Inc. (PCVX), a clinical-stage vaccine company, announced the pricing of 7.41 million shares of common stock and pre-funded warrants to purchase 0.4 million shares, and $500 million in aggregate principal amount of 1.50% convertible senior notes due 2032.

Vaxcyte expects combined gross proceeds of approximately $1 billion, comprising about $500 million from the common stock and pre-funded warrant offering and $500 million from the notes offering.

The common shares are being offered at $64.00 per share, while the pre-funded warrants are priced at $63.999 per warrant. The pre-funded warrants have an exercise price of $0.001 per share. In addition, Vaxcyte has granted the underwriters of the common stock and pre-funded warrant offering a 30-day option to purchase up to an additional 1.17 million shares at the offering price and a separate 30-day option to purchase up to an additional $75 million principal amount of notes, solely to cover over-allotments.

Vaxcyte plans to use the net proceeds to fund clinical development of its VAX-31 adult and pediatric programs, expand manufacturing capacity and inventory ahead of a potential U.S. commercial launch, and support medical affairs and commercial preparations. The funds will also support early-stage vaccine programs and general corporate purposes.

The offerings are expected to close on October 9, 2026, subject to customary closing conditions.

The equity and notes offerings are being conducted independently, with neither offering conditional on the completion of the other.

Jefferies, Leerink Partners, BofA Securities, Evercore ISI, Goldman Sachs & Co. LLC and Guggenheim Securities are acting as joint book-running managers for the common stock and pre-funded warrant offering.

On Monday, the company announced positive topline results from the OPUS-1 pivotal adult Phase 3 trial evaluating the safety, tolerability and immunogenicity of VAX-31 for the prevention of invasive pneumococcal disease (IPD) and pneumococcal pneumonia. According to the company, in the trial VAX-31 met all prespecified primary endpoints across age groups studied compared to Prevnar 20 (PCV20) and/or Capvaxive (PCV21).

Results from the OPUS-2 and OPUS-3 adult phase 3 trials are expected in the first half of 2027, with a BLA submission planned for the first half of 2028.

PCVX has traded between $39.87 and $90.75 over the past 52 weeks. The stock closed Tuesday's trade at $66.70, down 9.65%.

In overnight trading, PCVX is down 1.05% at $66.00.

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