How Vaxcyte's (PCVX) $1 Billion Thermo Fisher Deal Could Shape Its US Vaccine Supply Chain

• Vaxcyte announced a new agreement with Thermo Fisher Scientific to bring additional fill-finish commercial manufacturing for its broad-spectrum pneumococcal conjugate vaccines to the US, representing a commitment of up to US$1 billion at the Greenville, North Carolina facility.
• This move reinforces Vaxcyte’s long-term goal of securing robust, domestic supply chains for its vaccine portfolio as it advances commercial readiness.
• We will explore how expanding domestic manufacturing capacity with Thermo Fisher could strengthen Vaxcyte’s investment narrative in the US market.

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What Is Vaxcyte's Investment Narrative?

To be a shareholder in Vaxcyte right now, conviction centers on whether the company can progress its broad-spectrum pneumococcal vaccine pipeline to commercialization while managing rising losses and zero revenue to date. The Thermo Fisher partnership marks a tangible step forward in supply chain reliability and commercial readiness, potentially laying important groundwork ahead of the next key catalyst: pivotal Phase 3 trial results and future regulatory milestones. This manufacturing expansion may not immediately move the needle on short-term catalysts, like clinical data or FDA approvals, but it can reduce one of the company’s largest operational risks: inadequate US production capacity if or when products are approved. However, Vaxcyte’s forecast to remain unprofitable for several years means dilutive financing, spending on scale-up, and uncertain timelines are still front and center among the biggest risks, even with the new agreement in place.

On the other hand, the need for further capital raises is information every investor should keep in mind.

Upon reviewing our latest valuation report, Vaxcyte's share price might be too optimistic.

Exploring Other Perspectives

The Simply Wall St Community’s four fair value forecasts for Vaxcyte span from just over US$11 to above US$111, reflecting widely differing outlooks among participants. Amid major upcoming catalysts and persistent financial risks, this diversity underscores how sharply views on future performance can vary. Explore these perspectives to weigh where you stand today.

Explore 4 other fair value estimates on Vaxcyte - why the stock might be worth over 2x more than the current price!

Build Your Own Vaxcyte Narrative

Disagree with this assessment? Create your own narrative in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Vaxcyte research is our analysis highlighting 1 key reward and 2 important warning signs that could impact your investment decision.
• Our free Vaxcyte research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Vaxcyte's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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