Health and Healthcare

Biotech Implosion: Dynavax (DVAX)

Down_arrow_red_2Dynavax Technologies Corp. (NASDAQ: DVAX) is the latest biotech implosion as shares are down some 75% today.  The company gave an update on an FDA clinical hold on its investigational vaccine HEPLISAV with partner Merck & Co. (NYSE: MRK).

The companies have received communication from the FDA regarding theirresponse to the agency’s request for safety information pertaining tothe clinical hold on the two Investigational New Drug Applications forHEPLISAV.  Obviously, it isn’t good.

The FDA advised that the balance of risk versus potential benefit nolonger favors continued clinical evaluation of HEPLISAV in healthyadults and children, which might as well be the kiss of death for atrial program.  The FDA did advise that there may be potential for anacceptable risk versus benefit profile for HEPLISAV in patients withrenal failure.  For that effort, the FDA has requested additionalinformation from the companies before considering furtherclinical studies in those patients.

Dynavax and Merck are going to evaluate the FDA’s response inconsidering the next steps, but the clinical hold on the two U.S. INDApplications for HEPLISAV remains in effect.

The reason this is so bad is that Merck has been reviewing all of itsclinical trial relationships to focus on those which will have thegreatest upside and the greatest chance for broad acceptance.  Even ifthis would be able to be a profitable product for Dynavax, the fear isthat Merck may determine it isn’t worth its efforts. 

At the last quarterly report, Dynavax had almost $64 million in cash andequivalents and its total assets were $96.9 million after adding in $5million for goodwill and intangibles.  Its total liabilities werelisted as $83.1 million.  It has also been burning about $15 million inR&D per quarter on average for the last year.

The new market cap here only $11.3 million after a 75% price drop downto $0.28.  Before today its 52-week trading range was $0.97 to $6.55.Traders are obviously coming to the conclusion that there will be closeto nothing left at this company.

Jon C. Ogg
October 22, 2008

100 Million Americans Are Missing This Crucial Retirement Tool

The thought of burdening your family with a financial disaster is most Americans’ nightmare. However, recent studies show that over 100 million Americans still don’t have proper life insurance in the event they pass away.

Life insurance can bring peace of mind – ensuring your loved ones are safeguarded against unforeseen expenses and debts. With premiums often lower than expected and a variety of plans tailored to different life stages and health conditions, securing a policy is more accessible than ever.

A quick, no-obligation quote can provide valuable insight into what’s available and what might best suit your family’s needs. Life insurance is a simple step you can take today to help secure peace of mind for your loved ones tomorrow.

Click here to learn how to get a quote in just a few minutes.

Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.