Vaxcyte down after starting $1 bln stock, convertible offerings

Merck & Co

06/10/2026 13:53

** Shares of vaccine developer Vaxcyte PCVX.O down 1.7% at $72.60 before the bell as it seeks capital raise
** PCVX late Mon commenced public offerings of $500 mln in stock and pre-funded warrants, and $500 mln convertible bonds (CBs) due Oct 15, 2032
** PCVX shares on Mon surged ~31% to finish at $73.82 after co said its pneumonia vaccine, VAX-31, met all main goals in late-stage trial and produced immune responses at least comparable to Pfizer's PFE.N Prevnar 20 and Merck's MRK.N Capvaxive
** Co intends to use net offering proceeds from both offerings to fund clinical development of VAX-31 adult and pediatric programs, including ongoing VAX-31 adult Phase 3 program, trial evaluating its seasonal influenza vaccine (OPUS-2), among other purposes
** Jefferies, Leerink, BofA, Evercore, Goldman Sachs and Guggenheim joint bookrunners for equity offering; Jefferies, Leerink, BofA, Goldman Sachs and Evercore leading CBs deal
** San Carlos, California-based PCVX has ~148.8 mln shares outstanding for $11 bln market cap 
** Through Mon, stock up 60% YTD
** 9 of 10 analysts rate the stock "strong buy" or "buy", 1 "hold"; median PT $122, per LSEG

(Lance Tupper is a Reuters market analyst. The views expressed are his own)
((lance.tupper@tr.com 1-646-279-6380))