DVAX - Dynavax Technologies: Still A Believer

2024-03-24 07:39:48 ET

Summary

• Dynavax's core asset, HEPISLAV-B, saw a 69% increase in sales in FY23, making the company cash flow positive.
• The company's CpG 1018 vaccine candidates are advancing in mid-stage trials, with Heplisav potential sales reaching $400 million by FY27.
• Dynavax's stock has been trading at the lower end of its range, but with positive prospects and a strong balance sheet, it presents a solid long-term investment opportunity.
• An updated investment analysis around Dynavax Technologies follows in the paragraphs below.

Shares of vaccine maker Dynavax Technologies Corporation ( DVAX ) continue to trade at the lower end of a $12 to $15 range, which they have more or less maintained since mid-June 2023. The company's core asset (HEPISLAV-B) saw FY23 sales improve 69% over FY22 to $213.3 million, making the company cash flow positive despite the loss of revenue from CpG 1018 in Covid-19 vaccines. With three more CpG 1018 vaccine candidates advancing to or posting data from mid-stage trials in 2024 and HEPISLAV-B sales poised to reach at least $400 million by FY27, Dynavax merited an updated look after their fourth quarter results came out in late February. An analysis follows below....

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