Dynavax Stock (NASDAQ:DVAX) is the talk of the small cap biotech world after climbing more than 50% over the past two trading sessions. Dynavax is a stock that we have nailed a couple of times in the past for big gains. We believe this time is no different as the bullish enthusiasm looks set to continue.
In looking at the follow Dynavax stock chart, you can see the stock just blasted through the major resistance level of $7. The next major resistance level is $10, followed by $20. Investment bank Cantor Fitzgerald still has $20 as its target price for Dynavax stock.
About Dynavax Stock
Dynavax is a commercial stage biopharmaceutical company developing and commercializing novel vaccines. The Company launched its first commercial product, HEPLISAV-B® [Hepatitis B Vaccine (Recombinant), Adjuvanted], in February 2018, following U.S. FDA approval for prevention of infection caused by all known subtypes of hepatitis B virus in adults age 18 years and older. Dynavax is also advancing CpG 1018 as a premier vaccine adjuvant through research collaborations and partnerships. For more information, visit www.dynavax.com and follow the company on LinkedIn.
Major Insider Buying
The catalyst that really got Dynavax stock going was board member Andrew Hack’s 1 million share purchase at $5. This brought his total holdings in Dynavax to 8.525 million shares. This is good enough for 7.8% of the company, which is big vote of confidence in Dynavax. Furthermore, he is interim Chairman of the Board. Does he know something that the market doesn’t? Most definitely!
Dynavax is collaborating with Sinovac Biotech (NASDAQ:SVA) on a COVID-19 vaccine. Specifically, DVAX contributed its CpG 1018 adjuvant, used in hepatitis B vaccine Heplisav-B, while SVA will contribute its coronavirus vaccine candidate. An adjuvant is designed to boost the immune response thereby enhancing the effects of the vaccine.
Last week, researchers for Sinovac indicated in an interview with Sky News that they are “99%” sure that their COVID-19 vaccine candidate will be effective against the coronavirus. Their vaccine is in Stage 2, with an intent to move into Stage 3 with a trial in the U.K., the report indicates, with the scientists at the Beijing-based company providing assurances of its success.
Note preclinical trials earlier this month in mice, rats and rhesus macaques showed that the company’s treatment was safe and provided complete protection against SARS-CoV-2 strains (in the primates), according to the SVA Chairman Weidong Yin.
A Vaccine Is Coming
Dynavax Technologies says that it expects one or more of its collaboration partners in the development of a COVID-19 vaccine will begin a Phase 1 clinical trial as soon as July, according to an SEC filing. The company says it plans to provide an update on its early-stage collaborations in meetings with analysts and investors tomorrow. Dynavax says its partners are using an adjuvant that also is used in its own Heplisav-B hepatitis B vaccine.
One of the biggest overhangs for an investor holding a biotech runner is that the company will use the higher share price for an equity offering and dilute existing shareholders. Dynavax stock completed its public offering of 14M common shares at $5.00, for gross proceeds of $70M last month.
Net proceeds will be used to fund activities associated with the ongoing commercialization of HEPLISAV-B, to advance its CpG 1018 vaccine platform, and for general corporate purposes.
Currently trading with a market cap of just $636 million, Dynavax stock is an exciting play among COVID-19 vaccine players. Considering that Dynavax has multiple partners, Dynavax could likely be the first to market with a vaccine worth billions of dollars. Dynavax stock has multi-bagger written all over it and the stock’s run could be just getting started.
Good luck to all (except the shorts)!
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Disclosure: We have no position in NASDAQ:DVAX and have not been compensated for this article.
Image by Sasin Tipchai from Pixabay