Specifically, the analyst sees meaningful upside prospects waiting in the wings for this biotech firm: from DVAX’s first commercial product HEPLISAV-B launching in January to immune-oncology program SD-101 data coupled with Keytruda due in the first half of this year at a key oncology conference.
Spotlighting these catalysts as crucial for the company, the analyst reiterates an Overweight rating on DVAX stock while bumping up the price target from $25 to $27, which implies a close to 52% upside from current levels. (To watch Olson’s track record, click here)
“Following the launch of HEPLISAV-B in the U.S. and upcoming data for Phase 2 studies of SD-101, in combination with Keytruda in immuno-oncology (I-O) indications expected in 1H18, we believe significant upside opportunities remain in the near-term for the company,” cheer Piros.
“HEPLISAV-B was recommended by the CDC for use in the vaccination of adults, which the company believes is critical to drive broad insurance coverage and adoption,” highlights the analyst, who notes a drug supply of more than 250,00 vials on the table coupled with an extra 750,000 vials worth of raw material. The analyst adds, “We believe this is supply is sufficient for over two years.”
Regarding the I-O data, Piros comments, “We note that AACR is taking place in Chicago from April 14-18 (with abstracts available on March 14), and that ASCO is taking place in Chicago from June 1-5 (with abstracts available on May 16). The company ‘…believes that data from these trials in head and neck cancer and melanoma will support the initiation of a Phase 3 study in the second half of the year.'”
On back of domestic tax reform, the analyst is tweaking his tax rate down from 35% to 21%. Considering the Hepatitis B vaccine launch, the analyst angles for $7 million in sales this year. By the close of 2017, Dynavax posted $191.9 million in cash, gaining an extra $100 million in the first quarter of this year thanks to a $175 million term loan deal. The DVAX team has the choice to seek out another $75 million of this loan.
TipRanks paints a confident picture on Wall Street for this drug maker. Out of 5 analysts polled in the last 3 months, 4 are bullish on DVAX stock and just 1 plays it safe on the sidelines. With a healthy return potential of nearly 69%, the stock’s consensus target price stands at $29.80.