Dynavax Technologies Corporation (DVAX) Is Looking at a “Long Commercial Life” Ahead for Its Just-Approved Hepatitis B Vaccine

Cowen believes Dynavax has an asset on its hands that fulfills a valuable unmet need.

As Dynavax Technologies Corporation (NASDAQ:DVAX) at last “crosses the finish line” with Hepatitis B vaccine Heplisav-B, Cowen analyst Phil Nadeau praises the drug that makes this biotech firm “undervalued” on the heels of a post-“tumultuous” FDA review approval; complete with positive label.

In reaction to the news, the analyst maintains an Outperform rating on DVAX stock with a price target of $30, which implies a close to 50% upside from current levels. (To watch Nadeau’s track record, click here)

Not only did the company garner a green light with its vaccine, but the label likewise has Nadeau enthusiastic: “The label appears favorable, as it includes results from secondary efficacy endpoints vs. Engerix-B, data on patients with diabetes, and a relatively benign treatment of the adverse event data.”

Overall, “Heplisav’s torturous FDA review – which has spanned 5 years, 2 CRLs, and 2 VRBPAC meetings (not including a third that was cancelled) – has ended with the HBV vaccine’s approval. This marks an important milestone in Dynavax’s history, and management should be congratulated for its persistence and determination. Just as important, the FDA’s deliberations have resulted in a very favorable label. The label portrays Heplisav’s safety to be similar to that of Engerix-B, with no warnings or precautions for any class of adverse events. […] Moreover, the label does include data on diabetic patients, which should help drive penetration of this part of the market. With Heplisav’s label favorable, we expect it to become the market-leading HBV vaccine over time,” Nadeau concludes, noting his consultants find “Heplisav meets an unmet need,” while simultaneously “impressed” the vaccine lessens how many required injections and office visits patients will need.

By 2022, the analyst projects Heplisav will garner Dynavax $265 million in revenue, leading a “long commercial life” and fostering “much shareholder value.”

Wall Street loves this stock, earning a stellar analyst consensus rating, as TipRanks analytics demonstrate DVAX as a Strong Buy. Out of six analysts polled in the last 12 months, five are bullish on Dynavax stock, while one is sidelined. With a return potential of nearly 15%, the stock’s consensus target price stands at $23.40.

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