Dynavax Technologies Corporation (NASDAQ:DVAX) announced that it has entered into a note purchase agreement with one or more funds of Deerfield Management Company, L.P, pursuant to which Dynavax has agreed to sell, and Deerfield has agreed to purchase, $100 million principal amount of Dynavax’s 10.375% Senior Secured Notes. Dynavax would receive the $100 million upon approval from the U.S. Food and Drug Administration (FDA) of HEPLISAV-B™, Dynavax’s investigational adult hepatitis B vaccine, and satisfaction of other conditions. Dynavax intends to use the net proceeds from the offering for general corporate purposes, including the commercialization of HEPLISAV-B. The Biologics License Application for HEPLISAV-B is currently being reviewed by the U.S. Food and Drug Administration, which has established a Prescription Drug User Fee Act (PDUFA) action date of December 15, 2016.
“This non-dilutive financing is an important element of our plans for HEPLISAV-B, subject to approval by the FDA, and advancing our immuno-oncology programs. We are pleased to have the support of Deerfield, a premier financing partner in life sciences that provides growth capital for biopharmaceutical companies like Dynavax,” said Eddie Gray, chief executive officer of Dynavax.
The notes will mature on the fifth anniversary of the purchase date, will be secured by Dynavax’s assets and can be prepaid under certain conditions and atDynavax’s discretion at any time. (Original Source)
Shares of Dynavax are currently trading at $10.02, down $0.03 or -0.25%. DVAX has a 1-year high of $29.86 and a 1-year low of $9.80. The stock’s 50-day moving average is $11.27 and its 200-day moving average is $15.00.
On the ratings front, Dynavax has been the subject of a number of recent research reports. In a report issued on September 6, Cowen analyst Phil Nadeau reiterated a Buy rating on DVAX, with a price target of $45, which implies an upside of 348% from current levels. Separately, on the same day, William Blair’s Y Katherine Xu maintained a Buy rating on the stock .
According to TipRanks.com, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, Phil Nadeau and Y Katherine Xu have an average return of 0.1% and 0.0% respectively. Nadeau has a success rate of 39% and is ranked #2398 out of 4188 analysts, while Xu has a success rate of 40% and is ranked #2607.
Dynavax Technologies Corp. is a clinical-stage biopharmaceutical company that uses toll-like receptor TLR biology to discover and develop novel vaccines and therapeutics. The company’s development programs are organized under its three areas of focus: vaccine adjuvants, cancer immunotherapy, and autoimmune and inflammatory diseases. Its lead product candidate is HEPLISAV, a Phase III investigational adult hepatitis B vaccine. The company’s other products under pipeline are SD-101, DV1179 Autoimmune Disease and AZD1419 Asthma Therapy.