Vaxcyte, Inc. (PCVX) saw its stock price plummet by 5.05% during intraday trading on Thursday, following the disclosure of a significant regulatory risk.

The company has identified a new risk in its Innovation/R&D category, highlighting its exposure to regulatory timing risk from the U.S. Food and Drug Administration (FDA). According to the disclosure, potential FDA delays could derail Vaxcyte's development and commercialization plans for its pipeline products.

For biotechnology companies like Vaxcyte, regulatory approvals are critical milestones, and any uncertainty or potential delays in the FDA review process can significantly impact investor sentiment and stock valuation.