Dynavax Technologies Corporation (DVAX - Snapshot Report) reported a loss of 9 cents per share in the second quarter of 2013, a penny narrower than the Zacks Consensus Estimate of a loss of 10 cents per share, but flat year over year.
Dynavax reported revenues of $3.4 million, up 26.4% from the year-ago period and above the Zacks Consensus Estimate of $3 million.
Collaboration revenues came in at $1.4 million, down 16.4% from the year-ago quarter.
Grant revenue from Dynavax’ contract for adjuvant development awarded by the National Institutes of Health grew 58.1% to $1.4 million from the year-ago quarter.
Research and development expenses came in at $12.8 million in the second quarter of 2013, up 12.5% driven primarily by the purchase of components for hepatitis B vaccine candidate, Heplisav.
General and administrative expenses surged 28.1% to $7.6 million. Incremental severance expenses contributed to the increase.
We remind investors that Dynavax is developing Heplisav, in collaboration with GlaxoSmithKline (GSK - Analyst Report). Heplisav is currently under review in the US and Europe.
However, Dynavax received a setback in its efforts to get the candidate approved in the U.S. in Jun 2013 when the U.S. Food and Drug Administration (FDA) asked for additional safety data to approve its Biologic License Application (BLA).
Dynavax had conducted a meeting with the agency in Jun 2013 to discuss the Complete Response Letter (CRL) issued by the latter in Feb 2013 refusing to approve Heplisav in patients in the age group of 18-70 without further evaluation of safety.
Dynavax currently does not have any approved product in its portfolio. We expect investor focus to remain on Heplisav updates in the near term.
Apart from Heplisav, Dynavax is also developing AZD1419, for the treatment of asthma, in partnership with AstraZeneca (AZN - Analyst Report).
Dynavax carries a Zacks Rank #2 (Buy). Right now, Anika Therapeutics Inc. looks more attractive with a Zacks Rank #1 (Strong Buy).