Because multiple doses over a longer period can reduce patient adherence rates and it's particularly important to provide vaccination protection to at-risk patient populations, Dynavax Technologies designed HEPLISAV-B so that it can be taken in just two doses over a one month period and so that it works more effectively in patient populations like diabetics.
The final stretch
The independent monitors had already given Dynavax Technologies the OK to continue its phase 3 trial of HEPLISAV-B twice previously, so this third evaluation isn't too surprising.
Regardless, the fact that monitors are giving Dynavax Technologies the green light to continue its late stage trial suggests that there haven't been any new safety concerns that could derail any potential filing for regulatory approval.
That's good news for investors, but we'll still need to wait a bit longer to find out if HEPLISAV-B delivers results that match up favorably to Engerix-B. Dynavax Technologies hopes to complete this trial by October, which means that it should release top-line trial results for investors to digest sometime early next year.
Overall, I'm intrigued by HEPLISAV-B's potential to improve patient treatment, but I'm admittedly concerned about its $27 million in quarterly expenses. Granted, Dynavax Technologies has $98 million in cash at quarter end (plus another $29 million since then thanks to stock sales) and that should keep the lights on until the company is ready for a potential filing of HEPLISAV-B, but I'm still not quite convinced (yet) that HEPLISAV-B's peak sales potential justifies much more of a premium to its current market cap. For that reason, I'm unwilling to chase this stock higher.
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The article Why Shares in Dynavax Technologies Corp Are Soaring 10% Higher Today originally appeared on Fool.com.
Todd Campbell has no position in any stocks mentioned. Todd owns E.B. Capital Markets, LLC. E.B. Capital's clients may have positions in the companies mentioned. The Motley Fool recommends Johnson & Johnson. Try any of our Foolish newsletter services free for 30 days . We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy .
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
