Vaxcyte's shares hit record high after early data on pneumococcal vaccine
Updates shares in paragraphs 5 and 10, details on public offering in paragraph 6
Sept 3 (Reuters) -Vaxcyte's PCVX.O shares surged as much as 48%to a record high on Tuesday after the company saidits experimental pneumococcal vaccine showed promising results in an early-stage study, with a safety profile similar to rival Pfizer's PFE.N shot.
Vaxcyte said some doses of vaccine VAX-31 showed immune responses that exceeded expectations for 20 serotypes, or variations of the pneumococcal bacteria, which it had in common with Pfizer's Prevnar 20 vaccine.
Pneumococcal disease is a serious bacterial infection caused by bacteria called streptococcus pneumoniae. It spreads through direct contact with respiratory secretions such as saliva and mucus.
Vaxcyte's stock rose to$119.27, its highest level since its Nasdaq debut in 2020. It closed up 36.4%.
On Tuesday, the vaccine developer added more than $4 billion to its market capitalization.
Separately, the company said it has commenced an underwritten public offering of $1 billion of its common stock and pre-funded warrants.
The company, which does not have any approved product on the market, was testing the vaccine in 1,015 healthy adults aged 50 and above to prevent invasive pneumococcal disease.
Jefferies analyst Roger Song said the results were "straightforwardly impressive," adding that "VAX-31, if successful, will take up the lion's share in a growing $10 billion plus future pneumococcal conjugate vaccine market."
In the study, all doses of VAX-31 showed a safety profile similar to Prevnar 20 and robust immune responses for all 31 serotypes of the bacteria through the full six-month evaluation period, Vaxcyte said.
Shares of Pfizer closed down 2.45% at $28.31.
Based on results from the early-stage trial, Vaxcyte plans to advance the vaccine to a late-stage study in adults, with data expected in 2026.
Reporting by Sneha S K, additional reporting by Sriparna Roy in Bengaluru; Editing by Shreya Biswas and Maju Samuel
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