aibioVaxcyte raises about $1.1 billion in stock and convertible notes after phase 3 win
Tickers PCVX
The company sold shares at $64 and $575 million of 1.50% notes due 2032, adding to $2.5 billion it held at the end of June.
Key facts
- Company
- Vaxcyte, Inc. (NASDAQ: PCVX)
- News type
- Financings
- Primary source
- Vaxcyte (SEC 8-K)
Vaxcyte closed two concurrent offerings on October 9, 2026 that brought in about $1.1 billion in net proceeds: roughly $544.3 million from common stock and pre-funded warrants and $558.7 million from 1.50% convertible senior notes due 2032.
The raise followed by four days the company's report that VAX-31, its 31-valent pneumococcal vaccine, met all prespecified primary endpoints in the OPUS-1 phase 3 trial.
The details
Vaxcyte sold 7,412,500 shares at $64.00 each and pre-funded warrants for 400,000 shares at $63.999, through underwriters led by Jefferies and Leerink Partners. Underwriters bought the shares from Vaxcyte at $60.64. They also exercised in full, on October 7, an option to purchase another 1,171,875 shares.
The notes offering was $500 million plus a $75 million over-allotment, also exercised in full on October 7, for $575 million in principal. The notes pay 1.50% a year, semi-annually starting April 15, 2027, and mature on October 15, 2032. Before July 15, 2032, holders can convert only on certain events. Vaxcyte can redeem the notes from October 22, 2029 if its stock trades above 130% of the conversion price for a set period.
Both deals used Vaxcyte's existing shelf registration on Form S-3.
Context
The money adds to a large existing balance. Vaxcyte had $2,507.7 million in cash, cash equivalents and investments at June 30, 2026. Spending is high and rising: operating activities used $513.1 million in the first half of 2026, and second-quarter R&D expense was $267.9 million, much of it for manufacturing to support a possible launch.
Vaxcyte still has a long road to sales. It plans to report OPUS-2 and OPUS-3 results in the first half of 2027, run a manufacturing consistency study, and submit its BLA in the first half of 2028.
What it means for investors
Selling stock right after a positive phase 3 readout is a common move, and Vaxcyte used the moment to raise both equity and low-coupon debt. The equity piece added about 9 million shares and warrant shares. The convertible notes delay that dilution and may never convert if the shares stay below the conversion price, but they add $575 million of debt that comes due in 2032 if not converted or redeemed.
The case for raising now is the cost of what comes next. Vaccine manufacturing at commercial scale is expensive, and Vaxcyte has committed to dedicated manufacturing capacity at Lonza in Switzerland. Before third-quarter spending, the June 30 balance plus the October proceeds comes to about $3.6 billion. At the first-half 2026 burn rate that would cover several years, though spending will likely rise as launch nears.
The company has no products approved for sale and has not generated product revenue.
What to watch
Vaxcyte reports OPUS-2 and OPUS-3 adult data and infant phase 2 data in the first half of 2027. The BLA submission is planned for the first half of 2028.