Vaxcyte price target lowered to $90 from $140 at Needham

Needham lowered the firm’s price target on Vaxcyte (PCVX) to $90 from $140 and keeps a Buy rating on the shares after the company announced topline data from the Phase 2 trial evaluating pneumococcal conjugate vaccine VAX-24 in infants. Post-dose 3 data showed that the mid-dose hit non-inferiority on 20 of 24 serotypes, which fit the firm’s “at minimum” scenario of 4 ST misses, but was below “relatively high Street expectations” as investors were likely looking for 0-2 ST misses for PD3 and PD4, the analyst says. It is now “clear that some dose optimization on individual serotypes is needed for VAX-24,” which introduces a measure of uncertainty, says the analyst, who cites increased macro and development risk for the firm’s lowered target.