VACC

What does Vaccitech do? 

No prizes for guessing: Vaccitech makes vaccines. More accurately, it is a clinical stage T cell immunotherapy and vaccine company, developing products to treat and prevent infectious diseases and cancers. Founded in 2016, Vaccitech is a spin-out company from the University of Oxford's Jenner Institute.

As of the end of FY2021, Vaccitech has a large pipeline of clinical and preclinical stage therapeutic and prophylactic programs.

Its therapeutic program consists of:

• VTP-300 for the treatment of chronic hepatitis B infection (CHB) — in Phase 2

• VTP-200 for the treatment of human papilloma virus infection (HPV)  — in Phase 2 

• VTP-850 for the treatment of prostate cancer — in Phase 2

• VTP-600 for the treatment of non-small cell lung cancer (NSCLC) — in Phase 1

Its prophylactic program includes:

• VTP-400 for the prevention of herpes zoster (shingles)  — in Phase 1

• VTP-500 for the prevention of Middle East respiratory syndrome (MERS) — Preclinical 

Vaccitech also developed Vaxzevria (VTP-900) in partnership with Oxford University Innovation. The drug is now authorised for the prevention of COVID-19 infection in 90 countries.

How does Vaccitech make money?

Vaccitech receives money from three revenue streams and reports in a single segment.

Service revenue 

Vaccitech’s earnings for this stream come from providing research services. The company has recently worked with biotech company Enara Bio to provide research on up to six vaccine products based on antigens discovered by Enara.

Vaccitech has also worked with BARDA, a division of the U.S. Department of Health and Human Services in the Office of the Assistant Secretary for Preparedness and Response. Vaccitech is helping BARDA develop a new influenza prophylactic.

Licence revenue

Vaccitech receives a share of certain regulatory and sales milestones and royalties on net sales of Vaxzevria. The company also receives a portion of Vaxzevria sublicensing income from AstraZeneca who has exclusive worldwide rights to develop and commercialise the vaccine.

Vaccitech’s share of royalties on the net sales of Vaxzevria is approximately 1.4%.

Research grants and contracts

Vaccitech receives funding from the government to support its therapeutic and prophylactic research.

Is Vaccitech a profitable company?

No, Vaccitech is not profitable at this time.

The company reported net losses of US$18m and US$51m for FY2020 and FY2021. At the end of FY2021, the company had accumulated a deficit of US$108.6m.

In their most recent annual report, Vaccitech stated: 

“We are a clinical-stage biopharmaceutical company with a limited operating history, and we are in the early stages of our development efforts.”

Should I buy VACC stock?

The VACC stock price hit a high of US$17.99 not long after the company went public in May 2021. Shortly afterwards, the stock began to fall. As of March 2022, VACC has fallen over 70% to a low of US$4.47.

For many investors, VACC is a highly speculative play. The clinical-stage company is losing money and there’s no way to tell if Vaccitech’s immunotherapeutic products or vaccines will work.

Vaccitech has warned:

“Investment in biopharmaceutical product development is highly speculative because it entails substantial upfront capital expenditures and significant risk that any potential product candidate will fail to demonstrate adequate efficacy or an acceptable safety profile, obtain marketing authorization and become commercially viable.”

Is VACC an ADR?

Yes, as Vaccitech is a British company, VACC stocks are ADRs. These ADRs are listed on the Nasdaq.

What is an ADR?

An ADR is an American Depository Receipt. ADRs are equities that trade on American exchanges but represent stocks in a foreign corporation. ADRs make it easier for non-U.S. companies to access U.S. capital markets.

Who owns VACC stock?

As of March 2022, Vaccitech’s top five largest shareholders are Oxford Science Enterprises (23.66%), M&G Alternatives Investment Management (11.05%), M&G Investment Management Limited (5.85%), GV Management Company (4.58%) and Tencent Holdings Limited (3.84%).

Vaccitech C-level figures William Enright (CEO), Thomas Evans (Chief Scientific Officer) and Graham Griffiths (Chief Business Officer) are also significant shareholders holding 3.38%, 0.34% and 0.31%, respectively.

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