Get the Latest Investment Ideas Delivered Straight to Your Inbox. Subscribe


Trial Results of New Pneumococcal Vaccine Compelling
Research Report

Share on Stocktwits


Data show the vaccine elicited better immune responses in adults ages 50 and up than the standard of care vaccine, noted a BTIG report.

Vaxcyte Inc. (PCVX:NASDAQ) released data on the use of VAX-24 in the Phase 2 trial's age 65 and up subgroup, and they "look compelling," reported BTIG analyst Dr. Thomas Shrader in an April 17 research note. VAX-24 is the biotech's lead, broad-spectrum, 24-valent pneumococcal conjugate vaccine (PCV) candidate, being evaluated to prevent invasive pneumococcal disease.

"Based on what we see, the VAX-24 results look more than good enough to drive the recommendation of the Centers for Disease Control's Advisory Committee on Immunization Practices (ACIP) to immunize adults over 50, and we see this recommendation to be the biggest value driver for the story," Shrader wrote.

The current market opportunity for PCV is already "huge," added Shrader. However, it would be expanded, and in a significant way, were the ACIP to broaden its universal PCV recommendation (currently for adults 65 and up).

Attractive Potential Return

BTIG has a Buy rating and a US$69 per share target price on Vaxcyte, currently trading at US$42.57.

The difference between these prices reflects a potential 89% return for investors in the company.

Immune Response, Safety Shown

In the Phase 2 study in adults aged 65 and older, VAX-24 demonstrated robust opsonophagocytic activity (OPA)  immune responses for all 24 serotypes at all three doses investigated, Shrader relayed.

The analyst emphasized that with 2.2 micrograms (2.2 mcg) of VAX-24, immune responses were at least an estimated 30% better than PCV20 when compared to data from the prior Phase 2 study in adults ages 50 to 64. PCV20 is the current standard of care for patients over age 65.

"There is no reason to think this [30%] estimate won't hold up for any antigen tested if you test enough patients," the analyst added.

These data bode well for approval of VAX-24, which has fast-track status in the U.S., and for the ACIP lowering its recommended minimum age for getting a PCV. Vaxcyte plans to advance the 2.2 mcg dose to Phase 3.

Shrader also pointed out that "a new vaccine doesn't need to be 'better' or rigorously superior for all serotypes to be approved. It needs to be non-inferior against most serotypes but also bring some new coverage."

VAX-24 does this, he noted, and according to full six-month safety data, has a favorable tolerability and safety profile.

"The Phase 1/2 data derisked VAX-24 by 'hitting' on every serotype included in the vaccine (superior on 20, non-inferior on four)," added Shrader. 

What's Next for Pipeline

This year, catalysts are expected with three of Vaxcyte's vaccine candidates, Shrader noted and listed the events. Regarding VAX-24, the company expects to receive feedback from vaccine regulators in H2/23.

Also, within that same time period, Vaxcyte is slated to submit an investigational new drug (IND) application for VAX-31, its 31-valent PCV, for use in adults (though it is being evaluated for use in infants as well).

Sometime this year, Vaxcyte should hear back on its IND filing for VAX-A1, its vaccine candidate for group A strep in adults and infants.

Want to be the first to know about interesting Biotechnology / Pharmaceuticals investment ideas? Sign up to receive the FREE Streetwise Reports' newsletter. Subscribe

1) Doresa Banning wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor. She or members of her household own securities of the following companies mentioned in the article: None. She or members of her household are paid by the following companies mentioned in this article: None.

2) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: None. Click here for important disclosures about sponsor fees. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security. As of the date of this article, an affiliate of Streetwise Reports has a consulting relationship with: None. Please click here for more information. 

3) Comments and opinions expressed are those of the specific experts and not of Streetwise Reports or its officers. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.

4) The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal  disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.

5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the decision to publish an article until three business days after the publication of the article. The foregoing prohibition does not apply to articles that in substance only restate previously published company releases.  

6) This article does not constitute medical advice. Officers, employees and contributors to Streetwise Reports are not licensed medical professionals. Readers should always contact their healthcare professionals for medical advice.

Disclosures For BTIG Research, Vaxcyte Inc., April 17, 2023

Analyst Certification: I, Thomas Shrader, hereby certify that the views about the companies and securities discussed in this report are accurately expressed and that I have not received and will not receive direct or indirect compensation in exchange for expressing specific recommendations or views in this report. I, Sung Jun Hong, hereby certify that the views about the companies and securities discussed in this report are accurately expressed and that I have not received and will not receive direct or indirect compensation in exchange for expressing specific recommendations or views in this report.

Company–Specific Regulatory Disclosures BTIG LLC expects to receive or intends to seek compensation for investment banking services in the next 3 months from: Vaxcyte, Inc. (PCVX) BTIG LLC had an investment banking services client relationship during the past 12 months with: Vaxcyte, Inc. (PCVX) BTIG LLC managed or co-managed a public offering of securities in the past 12 months for: Vaxcyte, Inc. (PCVX) BTIG LLC has received compensation for investment banking services in the past 12 months from: Vaxcyte, Inc. (PCVX) Other Disclosures Additional Information Available Upon Request General Disclosures Research reports produced by BTIG LLC (“BTIG”) are published for and intended to be distributed solely to BTIG institutional and corporate clients. Recipients of BTIG reports will not be considered clients of BTIG solely because they may have received such BTIG report. To the extent recipient accesses BTIG research, whether on a BTIG research website or through a third-party platform, BTIG is able to search, filter, download and review information on the readership of BTIG’s research, including the specific research consumed and the name, company name, email address and, in certain circumstances, the location of the individual who accessed the research (the “Readership Information”). Recipient consents to BTIG’s receipt of the Readership Information, including receipt of that information from a third party. The research analyst(s) responsible for the preparation of this report receives compensation based upon a variety of factors, including the quality and accuracy of research, internal/client feedback, and overall Firm revenues. BTIG reports are based on public information and BTIG considers the same to be reliable, comprehensive information, but makes no representation or warranty that the reports are accurate or complete. BTIG opinions and information provided in this report are as of the date of the report and may change without notice. An issuer may be classified as “Under Review” or “Research Restricted”. In these cases, investors should consider any previous investment recommendation and/or rating to a subject company/issuer to no longer be current and should not be relied upon nor considered a solicitation. This research report is not an offer to buy or sell or solicitation of an offer to buy or sell any security in any jurisdiction where such an offer or solicitation would be illegal. This research report was not drafted specifically for any particular individual or entity and is not a personal recommendation to participate in any particular trading strategy or transaction. Any recipient of this research report should obtain independent advice specific to their personal circumstances before undertaking any investment activity and must make their own independent evaluation of any securities or financial instruments. Facts, views or opinions presented in this report have not been reviewed by, and may not reflect information known to, employees or other professionals in the “BTIG Group” (BTIG Group includes, but is not limited to, BTIG and its parents, subsidiaries and/ or affiliates). BTIG Group employees, including Sales Representatives and Traders, may provide oral or written commentary or advice that may be inconsistent with the opinions and/or views expressed in this research report. BTIG Group employees and/or its affiliates not involved in the preparation of this research report may have investments in securities or derivatives of securities of companies mentioned in this report that are inconsistent with the views discussed in this report. Investors in securities products bear certain risks in conjunction with those investments. The value of, and income from, any investments may vary because of changes in interest rates or foreign exchange rates, securities prices or market indexes, operational or financial conditions of companies or other factors within or beyond the companies’ control. Recipient of the research reports should be aware that investments in securities may pose significant risks due to the inherent uncertainty associated with relying on forecasts of various factors that can affect the earnings, cash flow and overall valuation of a company. Any investment in securities should be undertaken only upon consideration of issues relating to the recipient’s overall investment portfolio and objectives (such as diversification by asset class, industry or company) as well as time horizon and liquidity needs. Further, past performance should not be taken as an indication or guarantee of future performance, and no representation or warranty, express or implied, is made regarding future performance. There may be time limitations on the exercise of options or other rights in any securities transactions. Investing in foreign markets and securities, including ADRs, is subject to additional risks such as currency fluctuation, limited information, political instability, economic risk, and the potential for illiquid markets. Investing in emerging markets may accentuate these risks. Non-U.S. reporting issuers of foreign securities, however, may not make regular or complete public disclosure relating to their financial condition or the securities that they issue. The trademarks and service marks contained herein are the property of their respective owners. Third-party data providers make no warranties or representations of any kind relating to the accuracy, completeness, or timeliness of the data they provide and shall not have liability of any damages of any kind relating to such data. The report or any portion hereof may not be reprinted, sold or redistributed without the written consent of BTIG. This report is intended only for use by the recipient. The recipient acknowledges that all research and analysis in this report are the property of BTIG and agrees to limit the use of all publications received from BTIG within his, or her or its, own company or organization. No rights are given for passing on, transmitting, re transmitting or reselling the information provided. Jurisdiction and Dissemination BTIG is a U.S. broker-dealer and member of FINRA and SIPC. BTIG Australia Limited ACN 128 554 601, member of ASIC and ASX; BTIG Hong Kong Limited, an Exchange Participant of SEHK and licensed and regulated by the SFC; BTIG Ltd, member of the LSE, authorized and regulated by the FSA; and BTIG Singapore Pte Ltd, registered and licensed with MAS; are all separate but affiliated entities of BTIG. Unless governing law permits otherwise, you must contact a BTIG entity in your home jurisdiction for further information, or if you want to use our services in effecting a transaction. Issued and approved for distribution in the UK and EEA by BTIG Ltd. to eligible counterparties and professional clients only. Issued and distributed in Australia to “wholesale clients” only by BTIG Australia Limited. In Singapore and Hong Kong, further information may be obtained from BTIG Singapore Pte Ltd and BTIG Hong Kong Limited, respectively.

Want to read more about Biotechnology / Pharmaceuticals investment ideas?
Get Our Streetwise Reports Newsletter Free and be the first to know!

A valid email address is required to subscribe