Dynavax Technologies Corp. (DVAX) shares fell more than 20 percent yesterday after the company announced a stock offering of 17.5 million shares at $4.25/share. Also Dynavax said that its CEO, Dino Dina, was leaving the company.
Dr. Dina is a “biotech” guy. He did a great work by getting the company to where it is now. Anyways, DVAX is facing the new challenges of launching its drug, Heplisav, to the market. Company needs “commercial” leader instead of the scientist. Dr. Dina recognized that he is not the right person to “man the helm” as the company becomes a commercial rather than a research only company. Applauds to him for this decision:
[quote style="1"]Subsequent to a recommendation from Dino Dina, the Company’s Chief Executive Officer, the Company’s Board of Directors has agreed to initiate a process that they anticipate will include his succession. Dr. Dina plans to continue in his role as CEO through this process and will support the transition to his eventual successor. He will also continue as a member of the Company’s Board thereafter.[/quote]
Offering: no-one will arguing that commercialization of the drug is just as important as getting it approved by the Food and Drug Administration (look at Provenge from Dendreon – DNDN – as an example). DVAX needs cash for the anticipated launch of Heplisav’s and proceeds of $74.4 million will be used for manufacturing, marketing and hiring a sales force to this drug. No conspiracy here, cash-raising effort is the necessary step in today’s biotech world.
JPM (underwriters of the public offering) were willing to pay $4.25 per DVAX share. Here is no 100% “sure” that Dynavax stock will trade at its pre-offering levels in a few months from now, no-one stock commercial insurance will covering the risk of DVAX investments, but we are almost positive that Dynavax Technologies’s stock share price is a gift at its 9% current discount to the offering level.
2929 Seventh Street, Suite 100
Berkeley, CA 94710
Dynavax Technologies Corporation is a clinical-stage biopharmaceutical company that discovers and develops novel products to prevent and treat infectious and inflammatory diseases. Our clinical-stage product candidates include:
- Phase 3 HEPLISAV ™ Hepatitis B Vaccine
- Phase 1 Universal Flu Vaccine
- Phase 1 TLR Inhibitor for Lupus
- Phase 1 Hepatitis B Therapy