Vaxcyte signs $1 billion manufacturing deal with Thermo Fisher

Published 30/09/2025, 13:46
Vaxcyte signs $1 billion manufacturing deal with Thermo Fisher

SAN CARLOS, Calif. - Vaxcyte, Inc. (NASDAQ:PCVX), a $4.5 billion market cap biotechnology company with strong analyst support and a consensus "Buy" rating, announced Tuesday a new agreement with Thermo Fisher Scientific to establish fill-finish commercial manufacturing for its pneumococcal conjugate vaccines in the United States.

The agreement, valued at up to $1 billion, will provide custom commercial fill-finish capacity for Vaxcyte’s broad-spectrum pneumococcal conjugate vaccines at Thermo Fisher’s Greenville, North Carolina facility. According to InvestingPro data, Vaxcyte maintains a healthy financial position with more cash than debt on its balance sheet and a strong current ratio of 11.1x.

This manufacturing expansion is part of Vaxcyte’s long-term U.S. commercial supply strategy and represents a significant investment in domestic biomanufacturing capabilities.

"The decision to significantly expand our fill-finish manufacturing capacity in the United States represents an effort to expand our end-to-end supply strategy and align with the increasing focus on domestic biomanufacturing," said Grant Pickering, Chief Executive Officer and Co-founder of Vaxcyte.

Vaxcyte’s lead vaccine candidate is VAX-31, a 31-valent pneumococcal conjugate vaccine currently advancing to a Phase 3 adult clinical program while also being evaluated in a Phase 2 infant clinical program. The company’s pipeline also includes VAX-24, a 24-valent pneumococcal conjugate vaccine candidate.

The agreement aims to strengthen Vaxcyte’s U.S. supply chain and enhance commercial readiness for its vaccine candidates, according to the company’s press release statement.

Vaxcyte is a clinical-stage vaccine innovation company focused on developing vaccines against bacterial diseases. The company is headquartered in the United States. With analyst price targets ranging from $38 to $163, investors seeking deeper insights into Vaxcyte’s potential can access comprehensive analysis through InvestingPro’s detailed research reports, which offer expert analysis of the company’s financials, market position, and growth prospects.

In other recent news, Vaxcyte has advanced its VAX-31 pneumococcal vaccine to the final stage of an infant study. This study is comparing Vaxcyte’s 31-valent pneumococcal conjugate vaccine candidate to Prevnar 20, the current standard of care for preventing invasive pneumococcal disease. Additionally, Guggenheim has adjusted its price target for Vaxcyte, lowering it from $160 to $116, while maintaining a Buy rating. The adjustment is due to timeline shifts in Vaxcyte’s VAX-31 vaccine programs. Meanwhile, Goldman Sachs has initiated coverage on Vaxcyte with a Neutral rating and set a price target of $38. The investment bank highlighted Vaxcyte’s vaccine discovery and development platform, noting its potential in the $8 billion pneumococcal vaccine market. These developments reflect Vaxcyte’s ongoing efforts and the attention it is receiving from major financial institutions.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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