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Dynavax Technologies: A Surprising COVID-19 Play


  • Today, we revisit Dynavax Technologies after the company posted fourth quarter numbers last week.
  • Surprisingly, this hepatitis B vaccine concern has morphed itself into a surprising COVID-19 play that could unlock shareholder value.
  • We update our investment thesis on Dynavax given recent results and events in the paragraphs below.
  • I do much more than just articles at The Biotech Forum: Members get access to model portfolios, regular updates, a chat room, and more. Get started today »

Dynavax Technologies (NASDAQ:DVAX) is a name I have held and followed for years. I have watched it go through a long run to get its best of breed hepatitis B vaccine approved after several attempts (due mainly to FDA intransigence) and into early day of commercialization. The company posted fourth quarter results last week which we will review. More importantly, the company has all of a sudden become a significant COVID-19 play. We update our analysis on this small-cap vaccine concern in the paragraphs below.

Company Overview:

Dynavax Technologies is a small vaccine developer based in California. The company has leveraged its toll-like receptor [TLR] immune modulation platform to produce a hepatitis B vaccine (Heplisav-B) that has resulted in Hepislav-B, which is superior in a couple of important ways from long-term standard of care Entergix-B and is just starting to roll out on a large scale basis. Interestingly, the company developed an adjuvant (CpG 1018) that complements HEPLISAV-B. That adjuvant has become more important to the company's future than few imagined a few months ago as it looks like it will be core part of some COVID-19 vaccine products. The stock currently is trading at just under $9.00 a share and sports an approximate $1 billion market cap.

$600 M Potential Market Opportunity in U.S.

Source: Company Presentation

Fourth Quarter Highlights:

Last week the company posted fourth quarter results. Here are some of the highlights:

Net product revenue for Heplisav-B came in at $11.5 million. This was an 8.5% year-over-year improvement from $10.6 million for the fourth quarter of 2019. For FY2020, net product revenues came in at $36 million, a four percent increase from the same period a year ago. Given how the pandemic dominated 2020, Dynavax managed through the impacts quite well in my opinion.

Improved Protection with HEPLISA B Drives Adoption

Source: Company Presentation

They made significant progress on the cost

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This article was written by

Bret Jensen profile picture
Finding tomorrow's big winners in the lucrative biotech sector

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Analyst’s Disclosure: I am/we are long DVAX. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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