J.P. Morgan Shares Two Cents on Dynavax Technologies’ (DVAX) AACR Update

J.P. Morgan analyst Anupam Rama is out today with a brief research note on shares of Dynavax Technologies (NASDAQ:DVAX), as abstracts featuring data from the company’s head & neck cancer program will be presented at the American Association for Cancer Research (AACR) Annual Meeting this afternoon. Rama rates DVAX a Neutral, with a price target of $25, which implies an upside of 20% from current levels.

Rama wrote, “We wanted to provide our preliminary thoughts on the initial data provided from the phase 1b/2 trial of SD-101 + pembrolizumab in treatment-naïve head & neck cancer abstract. Indeed, with the caveat of small numbers, the overall response rate of 40% (4/10 all PRs; there was also one stable disease) beat our homerun scenario of ~30% outlined in our preview note in our view, and suggests not only activity, but efficacy that surpasses what has been recently observed in clinical trials. Of note, there were no major safety concerns within the abstract. Recall, the full poster presentation will be at AACR this afternoon. On the heels of these preliminary results as presented thus far, we believe DVAX shares should be up ~35%+ from current levels in early trading and, provided that ~30%+ response rate is confirmed in the full presentation, we believe upside should be sustained.”

“Looking forward, focus will shift to the phase 2 update of SD-101 in front-line melanoma mid-year, for which we continue to believe the bar is high (part of the basis of our Neutral rating). That said, while H&N is not currently in our model, we believe that the AACR update does validate SD-101’s multi-tumor potential (i.e., beyond melanoma),” the analyst added.

According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Anupam Rama has a yearly average return of 16.0% and a 57% success rate. Rama has a -21.6% average return when recommending DVAX, and is ranked #451 out of 4771 analysts.


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