Dynavax directors favored over Deep Track slate

Published 04/06/2025, 22:06
Dynavax directors favored over Deep Track slate

EMERYVILLE, Calif. - Dynavax Technologies Corporation (NASDAQ:DVAX), a biopharmaceutical firm focused on innovative vaccine development currently trading near its 52-week low at $9.89, reiterated its support for its current board of directors today, following recommendations from advisory firms Glass Lewis, ISS, and Egan Jones. According to InvestingPro data, the company maintains strong liquidity with a current ratio of 11.93, indicating robust short-term financial health. These firms have suggested that stockholders vote in favor of all Dynavax nominees at the upcoming Annual Meeting of Stockholders on June 11, 2025.

Glass Lewis acknowledged Dynavax’s strategic shift in 2019 towards vaccine development, noting it has "meaningfully contributed to shareholder value creation." The advisory firm also recognized the balanced board composition and sector-specific expertise of the current directors. Dynavax’s HEPLISAV-B® vaccine has become the market leader in the U.S. adult hepatitis B vaccine market since its launch, achieving a 44% market share and $268 million in net product revenue in 2024.

Dynavax’s board has been actively refreshed, with a majority of independent directors appointed since 2020, enhancing accountability and oversight. The company emphasizes that its director nominees have the necessary expertise to guide Dynavax through a critical year, contrasting with Deep Track’s candidates, who are perceived to lack equivalent experience in biotechnology and vaccine operations.

The company has been executing a capital allocation strategy that has reportedly delivered a 203% total return to stockholders over the past five years, outperforming its peers and the S&P Biotechnology Select Industry Index. As part of its capital return strategy, Dynavax has completed over 85% of its $200 million share repurchase program authorized in November 2024.

Dynavax cautions stockholders against Deep Track’s plan, which it views as focused on short-term gains at the expense of long-term value. The company’s statement, based on a press release, urges stockholders to support the re-election of its director nominees: Brent MacGregor, Scott Myers, Lauren Silvernail, and Elaine Sun.

Dynavax is a commercial-stage biopharmaceutical company that has developed two commercial products, including the HEPLISAV-B® vaccine and CpG 1018® adjuvant, used in various COVID-19 vaccines. The company’s strategy and performance have been endorsed by advisory firms, and it is poised to continue its focus on delivering long-term stockholder value. Based on InvestingPro’s comprehensive analysis, the company currently trades at Fair Value, with analyst price targets ranging from $11.10 to $31.00. For detailed financial health metrics and exclusive insights, access the full Pro Research Report, available for DVAX and 1,400+ other US stocks on InvestingPro.

In other recent news, Dynavax Technologies Corporation reported a significant miss in its Q1 2025 earnings per share, posting an EPS of -$0.77 compared to the forecasted $0.04. Despite this, the company saw a 34% increase in revenue year-over-year, largely driven by a 36% rise in net sales of its HEPLISAV-B vaccine. Dynavax maintained its full-year revenue guidance, expecting net product sales to reach the top half of its $305 million to $325 million range. Meanwhile, Citizens JMP adjusted its price target for Dynavax from $33.00 to $31.00, while retaining a Market Outperform rating, citing a strong start to the second quarter.

Additionally, the company is advancing its research and development efforts, with plans to initiate trials for pandemic influenza and Lyme disease vaccines. In corporate governance news, Deep Track Capital, a significant shareholder, is advocating for changes in Dynavax’s board, citing dissatisfaction with the company’s performance and strategic direction. Proxy advisory firm Glass Lewis has recommended voting for two of Deep Track’s director nominees, highlighting concerns about Dynavax’s capital allocation strategy. The upcoming Annual Meeting on June 11, 2025, will be a pivotal event for Dynavax as shareholders decide on board composition and strategic direction.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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