Vaxcyte(US:PCVX)2025-11-04 21:13Financial Agreements and Commitments - 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[73][74]. - 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[76]. - The company agreed to pay Sutro Biopharma additional milestone payments totaling up to $60.0 million in cash upon the occurrence of certain regulatory milestones[76]. - The total non-cancelable purchase commitments related to manufacturing services and raw materials due to key manufacturing partners amount to $631.7 million, with $283.5 million due in the remainder of 2025[80][79]. Stock and Equity - As of September 30, 2025, the company had issued and outstanding 130,029,111 shares of common stock, an increase from 124,893,034 shares as of December 31, 2024[82]. - The company raised $1.4 billion in net proceeds from an underwritten public offering on September 6, 2024, selling 12,087,378 shares at a price of $103.00 per share[89]. - The company has $129.7 million remaining for future sales under the Amended ATM Sales Agreement, having sold 4,211,367 shares at a weighted average price of $64.19 per share for aggregate gross proceeds of $270.3 million[84]. - The 2020 Equity Incentive Plan has 8,848,520 shares of common stock available for issuance as of September 30, 2025, following an increase of 6,244,651 shares effective January 1, 2025[95]. - The company has no shares of preferred stock issued or outstanding as of September 30, 2025[81]. - As of September 30, 2025, the company had 11,018,025 stock options outstanding with a weighted average exercise price of $43.65 and an intrinsic value of $72.07 million[97]. - For the nine months ended September 30, 2025, the company exercised options for 568,497 shares at a weighted average price of $13.15, resulting in an intrinsic value of $33.7 million[98]. - The company granted 1,743,601 restricted stock units (RSUs) during the nine months ended September 30, 2025, with a weighted average grant-date fair value of $49.12 per share[101]. - As of September 30, 2025, the unrecognized stock-based compensation cost related to unvested RSUs and performance stock units (PSUs) was $141.9 million, expected to be recognized over 2.99 years[102]. - The weighted average grant date fair value of options granted for the nine months ended September 30, 2025 was $32.60, compared to $46.46 for the same period in 2024[98]. - The total stock-based compensation expense for the nine months ended September 30, 2025 was $102.8 million, compared to $60.5 million for the same period in 2024[106]. - The company has a total of 2,084,007 shares available under the 2020 Employee Stock Purchase Plan as of September 30, 2025[104]. Financial Performance - The company reported a net loss of $212.8 million for the three months ended September 30, 2025, compared to a net loss of $103.1 million for the same period in 2024[112]. - The net loss for the nine months ended September 30, 2025, was $520.1 million, compared to $326.8 million for the same period in 2024, reflecting a 59% increase[118]. - For the three months ended September 30, 2025, total operating expenses were $242.4 million, compared to $139.9 million for the same period in 2024, representing a 73.3% increase[118]. - Research and development external costs for the three months ended September 30, 2025, were $161.3 million, up from $82.3 million in 2024, indicating a 96% increase[118]. - Total other income for the nine months ended September 30, 2025, was $129.3 million, compared to $80.5 million for the same period in 2024, marking a 60.5% increase[118]. Cash and Investments - As of September 30, 2025, the company had approximately $2.7 billion in cash, cash equivalents, and investments, down from $3.1 billion as of December 31, 2024[220]. - A hypothetical 10% increase in interest rates would impact net assets by $9.6 million and net loss by $8.3 million for the nine months ended September 30, 2025[220]. Foreign Currency and Inflation - Foreign currency denominated accounts payable and accrued expenses were $138.5 million as of September 30, 2025, compared to $72.4 million as of December 31, 2024[222]. - The company had foreign currency denominated property, plant, and equipment valued at $214.1 million as of September 30, 2025, up from $157.6 million in 2024[222]. - Inflation has increased costs related to labor and research and development contracts, although the company does not believe it had a material effect on operations during the reported periods[224]. - The company intends to evaluate alternative strategies, including hedging, to mitigate foreign currency exposure as risks increase in the future[222].