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Dynavax's Partner Doses First Patient in Coronavirus Study

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Dynavax Technologies Corporation (DVAX - Free Report) announced that its China-based collaboration partner, Clover Biopharmaceuticals, has begun a phase I study on its COVID-19 vaccine candidate that contains Dynavax’s CpG 1018 adjuvant.

Per a collaboration deal, Clover is developing S-Trimer vaccine, SCB-2019, based on Clover’s proprietary Trimer-Tag vaccine technology platform, in combination with Dynavax’s proprietary toll-like receptor 9 (TLR9) agonist adjuvant, CpG 1018. An adjuvant helps to enhance the immune response of an antigen leading to rapid development of the vaccine and broader availability to patients. An adjuvanted vaccine may also help patients with chronic conditions and less responsive to vaccination.

The phase I study will evaluate SCB-2019 alone, in combination with CpG 1018 and a different adjuvant to assess safety, reactogenicity, and immunogenicity of SCB-2019 at multiple dose levels, administered as 2 intramuscular injections. The study is being funded by the Coalition for Epidemic Preparedness Innovations.

Preliminary safety and immunogenicity data from the study are expected in August 2020.

Shares of Dynavax have increased 14.3% year to date compared with the industry’s rally of 12.8%.

The company’s CpG 1018 adjuvant has successfully demonstrated its ability to enhance the immune response of its marketed hepatitis B vaccine, Heplisav-B in patients with end-stage renal disease undergoing hemodialysis.

The company is also assessing additional opportunities to leverage its CpG 1018, and evaluating other opportunities for growth. It has established multiple research collaborations leveraging CpG 1018 to support the development of coronavirus vaccines. Dynavax has filed patent applications for the use of CpG 1018 in the COVID-19 vaccine. Several of its collaboration partners have announced clinical studies to evaluate a potential COVID-19 vaccine, which uses CpG 1018 adjuvant. Successful development of any vaccine will likely boost Dynavax revenues through milestone payments.

Meanwhile, we note that Clover is also developing SCB-2019 in combination with Glaxo’s Glaxo’s (GSK - Free Report) pandemic vaccine adjuvant technology.

Zacks Rank and Stocks to Consider

Dynavax currently has a Zacks Rank #3 (Hold).

A couple of better-ranked stocks in the biotech sector are Geron Corporation (GERN - Free Report) and Applied Genetics Technologies Corp. . Both stocks carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Geron’s loss per share estimates have narrowed from 48 cents to 28 cents for 2020 and from 38 cents to 29 cents for 2021 in the past 60 days. The company delivered a positive earnings surprise in three of the trailing four quarters, with the average beat being 11.41%.       

Applied Genetics’ loss per share estimates have narrowed from $2.32 to $2.03 for 2020 and from $2.01 to $1.59 for 2021 in the past 60 days. The company delivered a positive earnings surprise in two of the trailing four quarters, with the average beat being 1.34%.       

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