Vaxcyte edges lower after $1 billion raise to fund pneumococcal vaccine
PCVX•Vaxcyte secured $1 billion through an equity offering and convertible notes to fund development of its VAX-31 pneumococcal vaccine programs. Its shares edged lower in premarket trading after the raise.
1. Funding VAX-31 development
Vaxcyte priced about 7.8 million shares and pre-funded warrants at $64 each for $500 million in gross proceeds, alongside a $500 million offering of 1.5% convertible notes due Oct. 15, 2032. The notes have a conversion price of $89.60, a 40% premium to the equity offering price. The company intends to use net proceeds to fund VAX-31 adult and pediatric clinical development, including its ongoing adult Phase 3 program. VAX-31 recently met all main goals in a late-stage trial and produced immune responses at least comparable to Pfizer’s Prevnar 20 and Merck’s Capvaxive.
