Vaxcyte, Inc 10-Q for FY2021 Q1

About this 10-Q

Headline figures

Vaxcyte, Inc. (PCVX)

10-Q 2021-05-11 For: 2021-03-31

Added on April 07, 2026

Vaxcyte, Inc filed this 10-Q on May 11, 2021, covering the quarter ended March 31, 2021 (FY2021 Q1).

Large accelerated filer

Accelerated filer

Non-accelerated filer

Smaller reporting company

Emerging growth company

Quarter ended March 31, 2021, as reported in this filing, compared with the same period a year earlier where the filing states it.

Net loss: $21.22M; compared with a net loss of $27.14M a year earlier

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Delaware	46-4233385
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)
353 Hatch Drive Foster City, California	94404
(Address of principal executive offices)	(Zip Code)

		Page
PART I.	FINANCIAL INFORMATION
Item 1.	Financial Statements (unaudited)
	Condensed Balance Sheets	1
	Condensed Statements of Operations	2
	Condensed Statements of Comprehensive Loss	3
	Condensed Statements of Redeemable Convertible Preferred Stock and Stockholders’ Equity (Deficit)	4
	Condensed Statements of Cash Flows	6
	Notes to Unaudited Condensed Financial Statements	7
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	20
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	31
Item 4.	Controls and Procedures	31
PART II.	OTHER INFORMATION
Item 1.	Legal Proceedings	33
Item 1A.	Risk Factors	33
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	78
Item 3.	Defaults Upon Senior Securities	78
Item 4.	Mine Safety Disclosures	78
Item 5.	Other Information	78
Item 6.	Exhibits	79
Signatures		80

	March 31, 2021			December 31, 2020
Assets
Current assets:
Cash and cash equivalents	$	198,939		$	386,200
Short-term investments		122,180			—
Prepaid expenses and other current assets		3,595			2,804
Total current assets		324,714			389,004
Property and equipment, net		4,994			3,272
Operating lease right-of-use assets		1,028			—
Long-term investments		49,754			—
Restricted cash		871			—
Other assets		990			550
Total noncurrent assets		57,637			3,822
Total assets	$	382,351		$	392,826

Liabilities, Redeemable Convertible Preferred Stock and Stockholders' Equity (Deficit)
Current liabilities:
Accounts payable	$	31,864		$	29,785
Accrued compensation		1,007			284
Accrued manufacturing expenses		15,538			13,012
Accrued expenses (including related party accrual of $1,874 and $677 as of March 31, 2021 and December 31, 2020, respectively)		5,774			3,766
Deferred rent — current		—			14
Operating lease liabilities — current		833			—
Total current liabilities		55,016			46,861
Deferred rent — long-term		—			10
Operating lease liabilities — long-term		295			—
Other liabilities		103			112
Total liabilities		55,414			46,983

Commitments and contingencies (Note 6)
Stockholders' Equity (Deficit)
Preferred stock, $0.001 par value — 10,000,000 shares authorized at March 31, 2021 and December 31, 2020; no shares issued and outstanding at March 31, 2021 and December 31, 2020, respectively		—			—
Common stock, $0.001 par value — 500,000,000 shares authorized at March 31, 2021 and December 31, 2020; 51,338,801 and 51,071,593 shares issued and outstanding at March 31, 2021 and December 31, 2020, respectively		54			54
Additional paid-in capital		546,714			544,353
Accumulated other comprehensive loss		(47	)		—
Accumulated deficit		(219,784	)		(198,564	)
Total stockholders' equity (deficit)		326,937			345,843
Total liabilities, redeemable convertible preferred stock and stockholders' equity (deficit)	$	382,351		$	392,826

	Three Months Ended March 31,
	2021			2020
Operating expenses:
Research and development (including related party expenses of $1,612 and $218 for the three months ended March 31, 2021 and 2020, respectively)	$	17,258		$	24,315
General and administrative		5,885			3,281
Total operating expenses		23,143			27,596
Loss from operations		(23,143	)		(27,596	)
Other income (expense), net:
Interest expense		—			(7	)
Interest income		61			135
Grant income		—			329
Foreign currency transaction gains (losses)		1,862			(3	)
Total other income (expense), net		1,923			454
Net loss	$	(21,220	)	$	(27,142	)
Net loss per share, basic and diluted	$	(0.41	)	$	(6.70	)
Weighted-average shares outstanding, basic and diluted		51,174,978			4,049,848

										Accumulated			Total
					Additional					Other			Stockholders’
	Common Stock				Paid-in		Accumulated			Comprehensive			Equity
	Shares		Amount		Capital		Deficit			Loss			(Deficit)
Balance — December 31, 2020		51,071,593	$	54	$	544,353	$	(198,564	)	$	—		$	345,843
Exercise of stock options		267,208		—		487		—			—			487
Vesting of early exercised stock options		—		—		9		—			—			9
Stock-based compensation expense		—		—		1,865		—			—			1,865
Unrealized losses on investments		—		—		—		—			(47	)		(47	)
Net loss		—		—		—		(21,220	)		—			(21,220	)
Balance — March 31, 2021		51,338,801	$	54	$	546,714	$	(219,784	)	$	(47	)	$	326,937

	Series A				Series B				Series C				Series D													Total
	Redeemable Convertible				Redeemable Convertible				Redeemable Convertible				Redeemable Convertible								Additional					Stockholders’
	Preferred Stock				Preferred Stock				Preferred Stock				Preferred Stock				Common Stock				Paid-in		Accumulated			Equity
	Shares		Amount		Shares		Amount		Shares		Amount		Shares		Amount		Shares		Amount		Capital		Deficit			(Deficit)
Balance — December 31, 2019		6,225,719	$	24,967		6,786,896	$	55,151		7,377,480	$	80,192		—	$	—		4,059,909	$	7	$	2,967	$	(109,347	)	$	(106,373	)
Exercise of stock options		—		—		—		—		—		—		—		—		28,837		—		49		—			49
Issuance of common stock related to early exercised stock options		—		—		—		—		—		—		—		—		14,819		—		—		—			—
Vesting of early exercised stock options		—		—		—		—		—		—		—		—		—		—		128		—			128
Issuance of Series D redeemable convertible preferred stock, net of issuance cost of $125		—		—		—		—		—		—		8,220,242		109,875		—		—		—		—			—
Stock-based compensation expense		—		—		—		—		—		—		—		—		—		—		372		—			372
Net loss		—		—		—		—		—		—		—		—		—		—		—		(27,142	)		(27,142	)
Balance — March 31, 2020		6,225,719	$	24,967		6,786,896	$	55,151		7,377,480	$	80,192		8,220,242	$	109,875		4,103,565	$	7	$	3,516	$	(136,489	)	$	(132,966	)

	Three Months Ended March 31,
	2021			2020
Cash flows from operating activities:
Net loss	$	(21,220	)	$	(27,142	)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization		347			384
Stock-based compensation expense		1,865			372
Change in fair value of redeemable convertible preferred stock warrant		—			179
Amortization of operating right-of-use assets		180			—
Net amortization of premiums on investments		151			—
Changes in operating assets and liabilities:
Prepaid expenses and other current assets		(557	)		(951	)
Other assets		(441	)		(89	)
Operating lease liabilities		(105	)		—
Accounts payable		2,185			(723	)
Accrued compensation		723			(65	)
Accrued manufacturing expenses		2,525			13,159
Accrued expenses		1,142			1,245
Deferred rent and other long-term liabilities		—			(2	)
Net cash used in operating activities		(13,205	)		(13,633	)
Cash flows from investing activities:
Purchases of property and equipment		(1,246	)		(349	)
Purchases of investments		(172,145	)		—
Net cash used in investing activities		(173,391	)		(349	)
Cash flows from financing activities:
Payments of capital lease obligations		—			(60	)
Proceeds from issuance of redeemable convertible preferred stock, net of issuance costs		—			109,875
Proceeds from exercise of common stock options		487			49
Proceeds from issuance of common stock related to early exercised stock options		—			36
Payments of deferred offering costs		—			(103	)
Net cash provided by financing activities		487			109,797
Effect of exchange rate changes on cash and cash equivalents		(281	)		—
Net increase (decrease) in cash, cash equivalents and restricted cash		(186,390	)		95,815
Cash, cash equivalents and restricted cash, beginning of period		386,200			58,976
Cash, cash equivalents and restricted cash, end of period	$	199,810		$	154,791
Supplemental disclosure of cash flow information:
Cash paid for interest	$	—		$	7
Supplemental disclosures of non-cash investing and financing activities:
Purchases of property and equipment recorded in accounts payable and accrued expenses	$	1,537		$	35
Issuance costs for initial public offering included in accounts payable and accrued expenses	$	—		$	142

		March 31, 2021
	Fair Value Hierarchy Level	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
Assets		(in thousands)
Cash and cash equivalents:
Cash	Level 1	$	26,226	$	—	$	—		$	26,226
Money market funds⁽¹⁾	Level 1		113,718		—		—			113,718
Commercial paper⁽¹⁾	Level 2		58,997		—		(2	)		58,995
Total cash and cash equivalents		$	198,941		—	$	(2	)		198,939
Investments:
U.S. Treasury securities	Level 1		35,431		—		(5	)		35,426
Commercial paper	Level 2		89,931		—		(12	)		89,919
Corporate debt	Level 2		37,517		—		(28	)		37,489
U.S. government agency securities	Level 2		9,100		—		—			9,100
Total investments			171,979		—		(45	)		171,934

Total assets measured at fair value		$	370,920	$	—	$	(47	)	$	370,873

		December 31, 2020
	Fair Value Hierarchy Level	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
Assets		(in thousands)
Cash and cash equivalents:
Cash	Level 1	$	4,788	$	—	$	—		$	4,788
Money market funds⁽¹⁾	Level 1		381,412		—		—			381,412
Total assets measured at fair value		$	386,200	$	—	$	—		$	386,200

	March 31, 2021
	Fair Value
Due in less than one year	$	122,180
Due in one to five years		49,754
Total	$	171,934

	March 31,			December 31,
	2021			2020
	(in thousands)
Furniture and equipment	$	397		$	397
Computers and computer software		111			111
Lab equipment		7,027			4,739
Leasehold improvements		1,903			1,903
Construction in progress		—			219
Total property and equipment		9,438			7,369
Less: accumulated depreciation and amortization		(4,444	)		(4,097	)
Property and equipment, net	$	4,994		$	3,272

	March 31,
	2021
Cash paid for operating lease liabilities	$	223
Right-of-use assets recognized in exchange for new lease obligations		1,028
Current operating lease liabilities		833
Non-current operating lease liabilities		295
Weighted-average remaining lease term (in years)		0.89
Weighted-average discount rate		6.50	%

Years ending December 31,	(in thousands)
Remainder of 2021⁽¹⁾	$	(251	)
2022		487
2023		379
2024		388
2025		398
Thereafter		—
Total future undiscounted lease payments		1,401
Less: Imputed interest		(273	)
Total lease liabilities	$	1,128

				Options Outstanding
Stock Option Activity	Options Available for Grant			Number of Options			Weighted- Average Exercise Price Per Share		Weighted- Average Remaining Contractual Term (Years)		Aggregate Intrinsic Value
Balances — December 31, 2020		4,651,149			5,121,549		$	4.99
Additional shares authorized		2,553,579			—
Options granted		(79,000	)		79,000		$	26.56
Options exercised		—			(267,208	)	$	1.82
Options forfeited		136,924			(136,924	)	$	21.73
Balances — March 31, 2021		7,262,652			4,796,417		$	5.05		7.95	$	73,165
Vested and expected to vest — March 31, 2021					4,796,417		$	5.05		7.95	$	73,165
Exercisable at March 31, 2021					2,141,639		$	2.37		6.97	$	37,225

	Three Months Ended March 31,						Change
	2021			2020			$			%
	(in thousands)
Operating expenses:
Research and development	$	17,258		$	24,315		$	(7,057	)		(29.0	)%
General and administrative		5,885			3,281			2,604			79.4	%
Total operating expenses		23,143			27,596			(4,453	)		(16.1	)%
Loss from operations		(23,143	)		(27,596	)		4,453			(16.1	)%
Other income (expense), net:
Interest expense		—			(7	)		7			(100.0	)%
Interest income		61			135			(74	)		(54.8	)%
Grant income		—			329			(329	)		(100.0	)%
Foreign currency transaction gains (losses)		1,862			(3	)		1,865		*
Total other income (expense), net		1,923			454			1,469			323.6	%
Net loss	$	(21,220	)	$	(27,142	)	$	5,922			(21.8	)%

	Payments Due by Period
	Less							More
	than			1 - 3		3 - 5		than
	1 Year			Years		Years		5 Years		Total
	(in thousands)
Operating lease obligations⁽¹⁾	$	(69	)	$	781	$	689	$	—	$	1,401
Total	$	(69	)	$	781	$	689	$	—	$	1,401

	Impact on Net Assets as of March 31, 2021			Impact on Net Loss for the Three Months Ended March 31, 2021
Hypothetical Change in Currency Exchange Rates	(in thousands)
10% increase	$	(1,804	)	$	(2,702	)
10% decrease	$	1,804		$	2,702


		Incorporated by Reference
Exhibit Number	Description	Schedule Form	File Number	Exhibit	Filing Date

3.1	Amended and Restated Certificate of Incorporation of Vaxcyte, Inc., as amended	8-K	001-39323	3.1	June 16, 2020

3.2	Amended and Restated Bylaws of Vaxcyte, Inc.	8-K	001-39323	3.2	June 16, 2020

10.1+*	Development and Manufacturing Services Agreement by and between the Registrant and Lonza Ltd, dated October 21, 2016, as amended.

10.2	Lease Agreement by and between the Company and ARE-San Francisco No. 63, LLC, dated as of January 21, 2021	8-K	001-39323	10.1	January 21, 2021

31.1*	Certification of Principal Executive Officer Pursuant to Rules 13a-14(a) and 15d-14(a) under the Securities Exchange Act of 1934, as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

31.2*	Certification of Principal Financial Officer Pursuant to Rules 13a-14(a) and 15d-14(a) under the Securities Exchange Act of 1934, as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

32.1†	Certification of Principal Executive Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

32.2†	Certification of Principal Financial Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

101.INS	Inline XBRL Instance Document: the instance document does not appear in the interactive Data File because its XBRL tags are embedded within the Inline XBRL document

101.SCH	Inline XBRL Taxonomy Extension Schema Document

101.CAL	Inline XBRL Taxonomy Extension Calculation Linkbase Document

101.DEF	Inline XBRL Taxonomy Extension Definition Linkbase Document

101.LAB	Inline XBRL Taxonomy Extension Label Linkbase Document

101.PRE	Inline XBRL Taxonomy Extension Presentation Linkbase Document

104	Inline XBRL for the cover page of the Quarterly Report on Form 10-Q included in the Exhibit 101 Inline XBRL Document Set.

	Vaxcyte, Inc.

Date: May 11, 2021	By:	/s/ Grant E. Pickering
		Grant E. Pickering
		Chief Executive Officer

Date: May 11, 2021	By:	/s/ Andrew Guggenhime
		Andrew Guggenhime
		President and Chief Financial Officer