Dynavax Technologies Corporation (NASDAQ: DVAX)
Dynavax Technologies is having an incredibly rough day in the market today, and for good reason. The company has received damning news from the FDA, causing investors to drop the stock like it’s hot. Today, we’ll talk about what we’re seeing from the stock, why, and what we’ll be watching for with regard to DVAX ahead.
DVAX Takes A Dive
As mentioned above, Dynavax Technologies is by no means having the best of days in the market today. In fact, it is having one of its worst. Since the opening bell, the stock has been deep into the red, with seemingly no way to make it back to the green. At the moment (10:08), DVAX is trading at $4.40 per share after a loss of $7.21 (62.11%) thus far today.
Why The Stock Is Falling Apart
As soon as we noticed that massive declines on DVAX, the CNA Finance team started digging to see exactly what was causing the drop. It didn’t take long to dig the big story up. The company received a complete response letter with regard to HEPLISAV-B, a hepatitis B vaccine. Unfortunately, the FDA has decided against approving the treatment. In a statement, Eddie Gray, CEO at Dynavax, had the following to offer:
“The CRL is consistent with our opinion that HEPLISAV-B is approvable and we are seeking to meet with the FDA as soon as possible… However, the time and resources that will be required to gain approval leads us to consider that we may not be able to advance this program on our own and we are moving swiftly to identify a potential pharmaceutical or financial partner. We will maintain our efforts on the oncology programs, including our lead cancer immunotherapy candidate, SD-101, for which we recently announced encouraging early clinical data in metastatic melanoma.”
What We’ll Be Watching For Ahead
Unfortunately, the rejection of HEPLISAV-B is a big one that forces DVAX to think hard about how they are going to use their resources ahead. However, we will be watching for a possible partnership surrounding the treatment, which could turn things upside down again. Nonetheless, we’ll bring you the news as we dig it up!
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