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Will Dynavax's (DVAX) Growth Momentum Continue in 2022?
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Dynavax (DVAX - Free Report) has had a good run in the past year, with shares gaining 28% against the industry’s decline of 40.6%.
Image Source: Zacks Investment Research
Growth in sales of its Hepatitis B Vaccine, HEPLISAV-B, and advancement of its CpG 1018 adjuvant as a premier vaccine adjuvant with a diverse portfolio of COVID-19 vaccine developers boosted performance in 2021.
The trend is expected to continue in 2022. Last month, Dynavax outlined its strategic priorities for the year and announced a new candidate in its pipeline – a herpes zoster virus (shingles) vaccine candidate.
Dynavax expects year-over-year revenue growth for HEPLISAV-B and CpG 1018 adjuvant to drive its profitability in 2022.
HEPLISAV- B sales are expected to get a boost on upgraded recommendations from the CDC's Advisory Committee on Immunization Practices advice that all adults aged 19-59 be vaccinated against Hepatitis-B. This creates a significantly expanded market opportunity, which the company estimates to be $800 million in the United States by 2027.
CpG 1018 is the adjuvant used in HEPLISAV-B. Dynavax developed CpG 1018 adjuvant to provide an enhanced vaccine immune response, which has been demonstrated in HEPLISAV-B and in multiple COVID-19 vaccine candidates.
The company also plans to expand CpG 1018 adjuvant supply business for COVID-19 vaccines. The recent late-stage data from partnered programs consistently demonstrated the value of CpG 1018 adjuvant across multiple vaccine platforms. It also expects additional regulatory authorization for partners' COVID-19 vaccines in the first half of 2022.
Dynavax signed a commercial supply agreement with Biological E to use CpG 1018 adjuvant in the commercial production of the latter's COVID-19 vaccine candidate Corbevax, which was recently approved for emergency use by the Drugs Controller General of India. Additionally, Valneva SE (VALN - Free Report) is developing inactivated COVID-19 vaccine candidateVLA2001 using Dynavax's CpG 1018 adjuvant.
In October, Valneva reported positive top-line data on VLA2001 in Cov-Compare, a comparative immunogenicity phase III study trial in approximately 4,000 adults. The trial successfully met both co-primary endpoints of superior neutralizing antibody titer levels compared to the active comparator vaccine, AstraZeneca’s AZD1222 (ChAdOx1-S), and neutralizing antibody seroconversion rate above 95%.
Dynavax also plans to further advance its pipeline. Top-line data is expected in the first half of 2022 from its ongoing Tdap-1018 phase I study evaluating the safety, tolerability and immunogenicity in adults with adolescent data expected in the second half of 2022.
Top-line data from a phase I study evaluating the safety, tolerability and immunogenicity of its investigational shingles vaccine candidate adjuvanted with CpG 1018 is expected by the end of 2022. Per the company, the current shingles vaccine market is approximately $2 billion and is expected to grow over time.
Strong pipeline progress also sets the momentum for growth in the year.
Vir Biotechnology’s earnings per share estimates for 2022 have increased $6.52 in the past 60 days. VIR beat estimates in two of the last four quarters, missing the same on the other two occasions, the average surprise being 12.95%.
The consensus estimate for 2022 earnings for Vertex has increased $1.01 over the past 60 days to $14.33. Shares of VRTX gained 10% in the past year.
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Will Dynavax's (DVAX) Growth Momentum Continue in 2022?
Dynavax (DVAX - Free Report) has had a good run in the past year, with shares gaining 28% against the industry’s decline of 40.6%.
Growth in sales of its Hepatitis B Vaccine, HEPLISAV-B, and advancement of its CpG 1018 adjuvant as a premier vaccine adjuvant with a diverse portfolio of COVID-19 vaccine developers boosted performance in 2021.
The trend is expected to continue in 2022. Last month, Dynavax outlined its strategic priorities for the year and announced a new candidate in its pipeline – a herpes zoster virus (shingles) vaccine candidate.
Dynavax expects year-over-year revenue growth for HEPLISAV-B and CpG 1018 adjuvant to drive its profitability in 2022.
HEPLISAV- B sales are expected to get a boost on upgraded recommendations from the CDC's Advisory Committee on Immunization Practices advice that all adults aged 19-59 be vaccinated against Hepatitis-B. This creates a significantly expanded market opportunity, which the company estimates to be $800 million in the United States by 2027.
CpG 1018 is the adjuvant used in HEPLISAV-B. Dynavax developed CpG 1018 adjuvant to provide an enhanced vaccine immune response, which has been demonstrated in HEPLISAV-B and in multiple COVID-19 vaccine candidates.
The company also plans to expand CpG 1018 adjuvant supply business for COVID-19 vaccines. The recent late-stage data from partnered programs consistently demonstrated the value of CpG 1018 adjuvant across multiple vaccine platforms. It also expects additional regulatory authorization for partners' COVID-19 vaccines in the first half of 2022.
Dynavax signed a commercial supply agreement with Biological E to use CpG 1018 adjuvant in the commercial production of the latter's COVID-19 vaccine candidate Corbevax, which was recently approved for emergency use by the Drugs Controller General of India. Additionally, Valneva SE (VALN - Free Report) is developing inactivated COVID-19 vaccine candidateVLA2001 using Dynavax's CpG 1018 adjuvant.
In October, Valneva reported positive top-line data on VLA2001 in Cov-Compare, a comparative immunogenicity phase III study trial in approximately 4,000 adults. The trial successfully met both co-primary endpoints of superior neutralizing antibody titer levels compared to the active comparator vaccine, AstraZeneca’s AZD1222 (ChAdOx1-S), and neutralizing antibody seroconversion rate above 95%.
Dynavax also plans to further advance its pipeline. Top-line data is expected in the first half of 2022 from its ongoing Tdap-1018 phase I study evaluating the safety, tolerability and immunogenicity in adults with adolescent data expected in the second half of 2022.
Top-line data from a phase I study evaluating the safety, tolerability and immunogenicity of its investigational shingles vaccine candidate adjuvanted with CpG 1018 is expected by the end of 2022. Per the company, the current shingles vaccine market is approximately $2 billion and is expected to grow over time.
Strong pipeline progress also sets the momentum for growth in the year.
Zacks Rank & Other Stocks to Consider
Dynavax currently carries a Zacks Rank #2 (Buy). Other top-ranked stocks in the sector include Vir Biotechnology (VIR - Free Report) and Vertex Pharmaceuticals (VRTX - Free Report) . While Vir sports a Zacks Rank #1 (Strong Buy), Vertex carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Vir Biotechnology’s earnings per share estimates for 2022 have increased $6.52 in the past 60 days. VIR beat estimates in two of the last four quarters, missing the same on the other two occasions, the average surprise being 12.95%.
The consensus estimate for 2022 earnings for Vertex has increased $1.01 over the past 60 days to $14.33. Shares of VRTX gained 10% in the past year.