Cowen Defends Dynavax Technologies Corporation (DVAX) Following FDA Setback

In a research report issued this morning, Cowen Phil Nadeau reiterated an Outperform rating on shares of Dynavax Technologies Corporation (NASDAQ:DVAX), with a price target of $45, following the news that the FDA had cancelled its upcoming ADCOM meeting for the company’s Hepatitis-B vaccine, sending shares down nearly 32% on Friday.

Taking a defensive approach, Nadeau noted, “With Dynavax’s stock down 32% on Friday, and now trading with an enterprise value of only $281MM, its valuation would suggest that Heplisav is likely to be denied FDA approval a second time. We think such weakness is an over-reaction. We are encouraged that the FDA has decided a second VRBPAC review is not necessary, and that contrary to the market’s interpretation on Friday, this is not because there are review issues that preclude an AdCom at this time. We think this has more positive than negative implications, contrary to Friday’s market reaction. This implies to us that there are perhaps no issues serious enough to warrant a VRBPAC review, that whatever questions the FDA has can be resolved without an AdCom.”

“With Heplisav’s most recent HBV-23 Phase 3 trial meeting all of its efficacy and safety end points, we think it less likely that the FDA could say the issues in the prior Complete Response Letter have not been satisfied (and deny approval) without a VRBPAC discussion. However, with the HBV-23 trial achieving its objectives, we think it more likely that the FDA will conclude the CRL has been satisfied and approve Heplisav without an AdCom,” the analyst added.

According to, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Phil Nadeau has a yearly average return of 1.0% and a 45% success rate. Nadeau has a 20.2% average return when recommending DVAX, and is ranked #1829 out of 4147 analysts.

Out of the 3 analysts polled by TipRanks, 2 rate Dynavax Technologies stock a Hold, while 1 rates the stock a Buy. With a return potential of 202.5%, the stock’s consensus target price stands at $33.


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