Topic: How To Invest

Pat, what is your take on Dynavax Technologies?

Article Excerpt

Dynavax Technologies Corp., $22.22, symbol DVAX on Nasdaq (Shares outstanding: 28.9 million; Market cap: $667.2 million; www.dynavax.com), develops drugs and vaccines that aim to treat and prevent infectious diseases by strengthening the immune system. The company’s main focus is on Heplisav-B, a hepatitis B vaccine. Hepatitis refers to inflammation of the liver, as well as a group of viral infections that also affect the liver. Dynavax shares rose as high as $54 in 2012, when Phase III clinical trials—the stage prior to commercialization—showed some positive results. However, the U.S. Food and Drug Administration (FDA) and its European counterpart felt the sample size Dynavax used was too small to warrant approval. That caused the shares to drop as low as $10 in mid-2013. They have risen steadily since then to today’s price. The company now has a much larger Phase III trial underway, with 8,300 subjects. It should release the results later this year or in early 2016. Heplisav-B’s main advantage is that…