Dynavax Technologies Q2 Loss Wider than Expected, Sales Beat

Zacks

Dynavax Technologies Corporation (DVAX) reported a loss of 9 cents per share in the second quarter of 2014, flat with the year-ago quarter but wider than the Zacks Consensus Estimate of a loss of 6 cents.

Dynavax reported revenues of $3.1 million, down 10.1% from the year-ago period but way ahead of the Zacks Consensus Estimate of $2.0 million.

Quarter in Detail

Collaboration revenues came in at $2 million, up 49.8% from the year-ago quarter.

Grant revenue decreased 27.8% to $1 million from the year-ago quarter.

Research and development expenses increased 84.6% to $23.6 million in the second quarter of 2014 due to the initiation of the pivotal phase III trial, HBV-23 and significant subject enrollment for the trial. General and administrative expenses declined 46.5% to $4.1 million.

Pipeline Update

Dynavax is developing a hepatitis B vaccine, Heplisav, for adults. However, Heplisav's road to approval has been bumpy. Dynavax has received setbacks both in the U.S. and Europe in getting Heplisav approved.

In Apr 2014, Dynavax commenced a new phase III study (HBV-23) on Heplisav. HBV-23 is a large safety and immunogenicity study, which is designed to address the complete response letter (CRL) issued by the FDA in Feb 2013. The phase III study will evaluate the overall safety and immunogenicity of Heplisav as compared to GlaxoSmithKline’s (GSK) Engerix-B in adults in the age group of 18 to 70 years.

Dynavax expects all subjects to be enrolled by the end of 2014 and all follow-up visits to be completed by the fourth quarter of 2015.

We note that Dynavax is also developing AZD1419 for the treatment of asthma, in partnership with AstraZeneca (AZN). 4 weekly doses of AZD1419 or placebo were delivered by inhalation to 45 healthy volunteers in a phase I study. The study showed that ascending doses of up to 15.4 mg/week for 4 weeks were well tolerated. Secondary endpoints assessing pharmacodynamics were also met.

Dynavax carries a Zacks Rank #3 (Hold). Right now, Actelion (ALIOF) looks well placed with a Zacks Rank #1 (Strong Buy).

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