Vaxcyte(US:PCVX)2025-08-06 20:17Financial Agreements and Payments - The company entered into an option agreement with Sutro Biopharma in December 2022, paying $22.5 million upfront, which included $10.0 million in cash and $7.5 million in common stock[72][73]. - On November 21, 2023, the company exercised the option, paying $50.0 million in cash as the first installment, with a second installment of $25.0 million due in May 2024[74]. - The company agreed to pay Sutro Biopharma additional milestone payments totaling up to $60.0 million upon achieving certain regulatory milestones[74]. Share Issuance and Stock Options - The company has sold 4,211,367 shares under the Amended ATM Sales Agreement at a weighted average price of $64.19 per share, generating $270.3 million in gross proceeds[81]. - The company completed an underwritten public offering on September 6, 2024, raising $1.4 billion in net proceeds after deducting issuance costs[86]. - As of June 30, 2025, the company had 10,017,589 shares available for issuance under the 2020 Equity Incentive Plan[91]. - The company issued 2,500,000 shares at $20.00 per share in January 2022, resulting in net proceeds of $107.6 million[82]. - The company has 129,816,472 shares of common stock outstanding as of June 30, 2025[80]. - The company has recorded 862,884 shares subject to outstanding options under the 2014 Plan as of June 30, 2025[92]. - As of June 30, 2025, the company had 10,465,014 stock options outstanding with a weighted average exercise price of $44.36 and an intrinsic value of $54,196,000[93]. - For the six months ended June 30, 2025, the company exercised options for 549,602 shares at a weighted average price of $13.00, resulting in an intrinsic value of $33.3 million[94]. - The total stock-based compensation expense for the six months ended June 30, 2025 was $67.5 million, compared to $39.2 million for the same period in 2024[100]. - The unrecognized stock-based compensation cost related to unvested RSUs and PSUs as of June 30, 2025 was $134.9 million, expected to be recognized over a weighted average period of 2.92 years[96]. - The weighted average grant date fair value of options granted for the six months ended June 30, 2025 was $37.66, down from $45.86 in 2024[94]. - The company had 1,964,301 unvested RSUs as of June 30, 2025, with a weighted average grant-date fair value of $66.01[96]. - The total number of stock options outstanding increased from 9,366,936 on December 31, 2024 to 10,465,014 on June 30, 2025[93]. Financial Performance - The net loss for the three months ended June 30, 2025 was $166.6 million, compared to a net loss of $128.7 million for the same period in 2024[106]. - The net loss for the six months ended June 30, 2025, was $307.3 million, compared to a net loss of $223.7 million for the same period in 2024, reflecting a 37% increase[112]. - Total operating expenses for the three months ended June 30, 2025, were $226.2 million, a 48% increase from $153.0 million in the same period of 2024[112]. - Research and development external costs for the three months ended June 30, 2025, were $144.7 million, up 42% from $101.8 million in 2024[112]. Cash and Investments - As of June 30, 2025, the company had approximately $2.8 billion in cash, cash equivalents, and investments, down from $3.1 billion as of December 31, 2024[208]. - The company reported interest income of $31.1 million for the three months ended June 30, 2025[208]. - A hypothetical 10% increase in interest rates would result in a $10.5 million impact on net assets as of June 30, 2025[208]. Foreign Currency and Inflation - Foreign currency denominated accounts payable and accrued expenses were $91.7 million as of June 30, 2025, compared to $72.4 million as of December 31, 2024[210]. - The company had foreign currency denominated property, plant, and equipment valued at $202.9 million as of June 30, 2025, an increase from $157.6 million in 2024[210]. - Inflation has increased costs, particularly in labor and research and development, but the company does not believe it had a material effect on operations during the reported periods[212]. - The company intends to evaluate alternative strategies, including hedging, to mitigate foreign currency exposure as risks increase in the future[210]. Funding and Development Programs - The company has received funding of $11.7 million for its VAX-A1 vaccine development program, with all milestones achieved as of the second quarter of 2024[101].