10 Largest Biotech Hedge Funds and Their Top Stock Picks

3. Vaxcyte, Inc. (NASDAQ:PCVX)

Number of Hedge Fund Investors  in Q2 2024: 37

RA Capital’s Q2 2024 Investment Stake: $619 million

Vaxcyte, Inc. (NASDAQ:PCVX) is a small California based biotechnology company developing anti bacterial treatments. Since it is another pre clinical stage biotechnology company, the firm is yet to generate sales turnover or turn a profit. Its two leading drug candidates are VAX-24 and VAX-31. Both of these target pneumonia causing bacteria, and as of now, VAX-31 is Vaxcyte, Inc. (NASDAQ:PCVX)’s leading drug candidate that is currently in Phase1/2 clinical trials. This makes it a central part of Vaxcyte, Inc. (NASDAQ:PCVX)’s hypothesis, a fact that was clear as daylight in September 2024. The firm had hoped to announce the data for the trial in September 2024 and it delivered well. Vaxcyte, Inc. (NASDAQ:PCVX)’s stock shot up by a whopping 48% after the data release to a record high. This was because the drug matched the efficacy profile of Pfizer’s treatment with the robust results increasing Vaxcyte, Inc. (NASDAQ:PCVX)’s chance to play in a $10 billion market. Vaxcyte, Inc. (NASDAQ:PCVX)’s management also expects to bring VAX-31 into phase three trials next year, with data expected a year later.

Vaxcyte, Inc. (NASDAQ:PCVX)’s management shared details for the phase three trial during the Q4 2023 earnings call:

“And we are in the final stages of manufacturing the product needed for several of the potential Phase 3 studies, including the pivotal non-inferiority study. In advance of the potential initiation of this VAX-24 study in the second half of this year, we expect to announce the topline safety, tolerability, and immunogenicity data from our VAX-31 adult Phase 1/2 study in the third quarter.

This timing and the overlapping timeline for the completion of the VAX-24 and VAX-31 adult Phase 3 studies provide us the opportunity to make a strategic decision regarding which adult program we now move into Phase 3, following the VAX-31 data readout. As we advance VAX-24, we intend to initiate the pivotal non-inferiority study in the second half of this year and the balance of the Phase 3 studies, which are shorter in duration than the non-inferiority study in 2025 and 2026. If we advance VAX-31, we expect to initiate the full complement of the Phase 3 studies in 2025 and 2026. Regardless of which program, we move forward we expect to initiate the final Phase 3 studies in 2026. And subject to the results of these studies, submit a BLA shortly following the completion of the last study.”