Dynavax Responds to Deep Track and Highlights Long-Term Value Creation Strategy
Dynavax Technologies (DVAX) has responded to Deep Track Capital's nomination of four board candidates, highlighting its strong execution and value creation strategy. The company reported record HEPLISAV-B revenue in 2024 with 26% year-over-year growth and expects to achieve 60% market share by 2030.
The company maintains a strong financial position with $714 million in cash as of year-end 2024 and has implemented a $200 million share repurchase plan, with $100 million already executed through an accelerated program. Dynavax recently secured a $30 million contract with the U.S. Department of Defense for its plague vaccine program and is advancing its shingles vaccine program.
The board has initiated refreshment changes, including appointing two new independent directors and planning board declassification. Despite multiple settlement attempts with Deep Track, negotiations have been unsuccessful, with Deep Track seeking board control without paying a control premium.
Dynavax Technologies (DVAX) ha risposto alla nomina di quattro candidati al consiglio da parte di Deep Track Capital, evidenziando la sua solida esecuzione e strategia di creazione di valore. L'azienda ha registrato entrate record di HEPLISAV-B nel 2024 con una crescita del 26% anno su anno e prevede di raggiungere una quota di mercato del 60% entro il 2030.
L'azienda mantiene una posizione finanziaria forte con 714 milioni di dollari in contante alla fine del 2024 e ha implementato un programma di riacquisto di azioni da 200 milioni di dollari, con 100 milioni già eseguiti attraverso un programma accelerato. Dynavax ha recentemente ottenuto un contratto da 30 milioni di dollari con il Dipartimento della Difesa degli Stati Uniti per il suo programma di vaccini contro la peste e sta avanzando nel programma di vaccini contro il fuoco di Sant'Antonio.
Il consiglio ha avviato cambiamenti di rinnovamento, inclusa la nomina di due nuovi direttori indipendenti e la pianificazione della declassificazione del consiglio. Nonostante i molteplici tentativi di risoluzione con Deep Track, le trattative non sono state fruttuose, con Deep Track che cerca il controllo del consiglio senza pagare un premio di controllo.
Dynavax Technologies (DVAX) ha respondido a la nominación de cuatro candidatos a la junta por parte de Deep Track Capital, destacando su sólida ejecución y estrategia de creación de valor. La compañía reportó ingresos récord de HEPLISAV-B en 2024 con un crecimiento del 26% en comparación con el año anterior y espera alcanzar una cuota de mercado del 60% para 2030.
La empresa mantiene una sólida posición financiera con 714 millones de dólares en efectivo a finales de 2024 y ha implementado un plan de recompra de acciones de 200 millones de dólares, habiendo ejecutado ya 100 millones a través de un programa acelerado. Dynavax recientemente aseguró un contrato de 30 millones de dólares con el Departamento de Defensa de EE. UU. para su programa de vacunas contra la peste y está avanzando en su programa de vacunas contra el herpes zóster.
La junta ha iniciado cambios de renovación, incluyendo la designación de dos nuevos directores independientes y la planificación de la desclasificación de la junta. A pesar de múltiples intentos de acuerdo con Deep Track, las negociaciones no han tenido éxito, con Deep Track buscando el control de la junta sin pagar una prima de control.
다이나박스 테크놀로지스 (DVAX)는 딥 트랙 캐피탈의 네 명의 이사 후보 지명에 대응하여 강력한 실행력과 가치 창출 전략을 강조했습니다. 이 회사는 2024년 HEPLISAV-B의 매출 기록을 보고하며 전년 대비 26% 성장했으며, 2030년까지 60%의 시장 점유율을 달성할 것으로 예상하고 있습니다.
회사는 2024년 연말 기준으로 7억 1,400만 달러의 현금을 보유하고 있으며, 2억 달러의 자사주 매입 계획을 시행하였고, 이미 1억 달러가 가속 프로그램을 통해 실행되었습니다. 다이나박스는 최근 미국 국방부와 3천만 달러 계약을 확보하여 페스트 백신 프로그램을 진행 중이며, 대상포진 백신 프로그램도 발전시키고 있습니다.
이사회는 두 명의 새로운 독립 이사를 임명하고 이사회 비밀 해제를 계획하는 등 변화의 새 바람을 일으켰습니다. 딥 트랙과 여러 차례의 합의 시도에도 불구하고 협상은 실패했으며, 딥 트랙은 통제 프리미엄을 지불하지 않고 이사회 통제를 원하고 있습니다.
Dynavax Technologies (DVAX) a répondu à la nomination par Deep Track Capital de quatre candidats au conseil d'administration, soulignant sa solide exécution et sa stratégie de création de valeur. L'entreprise a annoncé des revenus records pour HEPLISAV-B en 2024 avec une croissance de 26 % d'une année sur l'autre et prévoit d'atteindre une part de marché de 60 % d'ici 2030.
L'entreprise maintient une solide position financière avec 714 millions de dollars en liquidités à la fin de 2024 et a mis en place un plan de rachat d'actions de 200 millions de dollars, dont 100 millions ont déjà été exécutés via un programme accéléré. Dynavax a récemment sécurisé un contrat de 30 millions de dollars avec le département de la Défense des États-Unis pour son programme de vaccin contre la peste et fait progresser son programme de vaccin contre le zona.
Le conseil d'administration a initié des changements de renouvellement, y compris la nomination de deux nouveaux directeurs indépendants et la planification de la déclassification du conseil. Malgré plusieurs tentatives de règlement avec Deep Track, les négociations n'ont pas abouti, Deep Track cherchant à prendre le contrôle du conseil sans payer de prime de contrôle.
Dynavax Technologies (DVAX) hat auf die Nominierung von vier Vorstandsmitgliedern durch Deep Track Capital reagiert und seine starke Ausführung sowie Strategie zur Wertschöpfung hervorgehoben. Das Unternehmen berichtete von Rekordumsätzen mit HEPLISAV-B im Jahr 2024 mit einem Wachstum von 26% im Vergleich zum Vorjahr und erwartet, bis 2030 einen Marktanteil von 60% zu erreichen.
Das Unternehmen hat eine starke finanzielle Position mit 714 Millionen Dollar in bar zum Ende des Jahres 2024 und hat einen Aktienrückkaufplan über 200 Millionen Dollar implementiert, wobei bereits 100 Millionen Dollar über ein beschleunigtes Programm ausgeführt wurden. Dynavax hat kürzlich einen 30-Millionen-Dollar-Vertrag mit dem US-Verteidigungsministerium für sein Pestimpfprogramm gesichert und entwickelt sein Programm für den Gürtelrose-Impfstoff weiter.
Der Vorstand hat Erneuerungsänderungen eingeleitet, darunter die Ernennung von zwei neuen unabhängigen Direktoren und die Planung einer De-Klassifizierung des Vorstands. Trotz mehrerer Vergleichsversuche mit Deep Track waren die Verhandlungen erfolglos, da Deep Track die Kontrolle über den Vorstand ohne Zahlung einer Kontrollprämie anstrebt.
- Record HEPLISAV-B revenue growth of 26% YoY in 2024
- Strong cash position of $714 million at 2024 year-end
- $200 million share repurchase program announced
- New $30 million DoD contract for plague vaccine program
- Expected 60% market share for HEPLISAV-B by 2030
- Discontinued Tdap program due to insufficient study results
- Ongoing board dispute with major shareholder Deep Track Capital
Insights
The ongoing battle between Dynavax and Deep Track Capital represents a critical juncture in the company's strategic direction, with significant implications for shareholder value. The company's strong financial position, with
The company's multi-pronged strategy demonstrates promising momentum:
- HEPLISAV-B's
26% year-over-year revenue growth indicates strong commercial execution and market penetration - The targeted
60% market share by 2030 suggests significant revenue growth potential - The
$30 million DoD contract validates the company's technology platform and provides non-dilutive funding - The shingles vaccine program targets a multi-billion dollar market opportunity with potential for substantial returns
Deep Track's proposed strategy of abandoning portfolio diversification for a single-asset focus presents significant risks. The company's decision to discontinue the Tdap program demonstrates disciplined capital allocation, contrasting with Deep Track's more aggressive approach. The
The board refreshment initiative, adding two independent directors and planning declassification, shows proactive governance evolution. However, Deep Track's insistence on gaining board control without a premium raises serious concerns about potential value destruction through forced short-term actions versus sustainable long-term growth.
Reiterates Meaningful Board Change Already Underway
Track Record of Strong Financial Performance Underpinned by Disciplined and Balanced Capital Allocation
Dynavax has been successfully executing a clear strategic plan focused on three core priorities which is consistently delivering strong financial results and sustainable long-term value:
- Driving strong HEPLISAV-B® growth: Dynavax achieved record HEPLISAV-B annual revenue in 2024, reflecting
26% growth year-over-year, positioning the Company at the upper tier of its updated guidance range. The Company expects to achieve at least60% total market share by 2030. - Advancing a differentiated vaccine pipeline: Dynavax is advancing a pipeline of differentiated product candidates that leverage its proprietary CpG 1018® adjuvant, including its novel shingles vaccine program with potential to disrupt the multi-billion dollar global shingles vaccine market. The Company also recently announced a new
$30 million U.S. Department of Defense to advance its plague vaccine program. - Maintaining a disciplined and balanced approach to capital allocation: With the strength of the Company's financial profile, including its balance sheet with
$714 million
As part of the Company's disciplined capital plan, in November 2024, Dynavax announced its first share repurchase plan of
Meaningful Board Change Already Underway
Beginning in August 2024, the Board initiated a process to identify new directors as part of its ongoing refreshment program. As disclosed on January 27, 2025, the Board announced meaningful changes to the composition of the Board and the Company's governance profile, including the appointment of two highly qualified independent directors, two current directors stepping down at the 2025 Annual Meeting and the Board's intention to seek stockholder approval at the 2025 Annual Meeting for the declassification of the Board.
The Board has thoughtfully evolved as the Company has grown to ensure the directors have a balanced mix of skillsets and experiences that are closely tied to the Company's key priorities, including vaccine development – R&D, marketing, commercial operations, executive leadership and financial expertise.
Following the 2025 Annual Meeting, the Board will be comprised of nine directors, with six of its eight independent directors having been appointed since 2020.
Engagement with Deep Track
The Board and management team have engaged extensively with Deep Track over many years and incorporated Deep Track's feedback into the Company's decision making. Since the fall of 2024, Deep Track, and in particular, its founder, David Kroin, have become fixated on a strategy for Dynavax based on significantly flawed financial and strategic assumptions. Despite multiple attempts by the Board and management to find common ground, Deep Track has only become more insistent on a value destructive plan for Dynavax: abandoning portfolio diversification, returning any cash needed to sustain and grow the business by implementing an outsized share repurchase program and selling Dynavax as a single-asset company. Deep Track's strip-mining plan for Dynavax jeopardizes a strong platform with significant long-term growth opportunities for a near-term payoff of a considerably lower value.
To prosecute its strip-mining strategy, Deep Track initially proposed three new directors – Jeffrey Farrow, Donald Santel and Brett Erkman, a Deep Track representative. The Board's Nominating and Corporate Governance Committee interviewed each of the three candidates and determined, after consultation with the full Board, that only one, Mr. Santel, would be additive to the Board relative to the existing directors and the other independent candidates the Board was already separately considering as part of its ongoing refreshment process.
In order to avoid the distraction and cost of a potential proxy contest, the Board offered multiple highly reasonable settlement proposals that provided meaningful Board refreshment without compromising the Company's long-term prospects. Unfortunately, Deep Track has been insistent on obtaining the ability to "control" the Board without paying a control premium and expanded its list of demands throughout the negotiation process:
- The Board initially proposed a settlement that included the appointments of two independent directors, one of whom was Mr. Santel, and one of the Board's current directors stepping down. Mr. Kroin rejected this and demanded that any settlement must include, Mr. Erkman, and that Deep Track must have the opportunity to gain majority "control" of the Board by 2026. Dynavax's Board was told that independent candidates proposed by the Board "don't count" toward Deep Track's demand for control.
- Notwithstanding Mr. Kroin's alarming focus on gaining control of the Board by 2026 without paying other stockholders a control premium, the Board revised its settlement proposal to include the appointment of a third mutually agreed independent candidate and three current directors retiring by the 2026 Annual Meeting. Deep Track summarily rejected this proposal, steadfast in its insistence that it have the opportunity to take control of the Board by 2026.
- Given Deep Track's rejection of the revised settlement proposal, the Company moved forward with its planned Board and governance changes as announced on January 27, 2025. Subsequent to this announcement, the Board was still willing to reach a resolution and again offered for Mr. Santel to join the Board in the context of settlement. Deep Track was completely unresponsive for three weeks, and instead of engaging with the Company, decided to add a fourth candidate to its slate and submit a nomination notice in furtherance of its distracting and value-destructive campaign.
While the Board believes this proxy contest is unreasonable and disregards multiple constructive settlement offers by the Board, Dynavax remains committed to constructive and reasonable engagement with Deep Track, while ensuring that the best interests of all stockholders – not only those of Mr. Kroin and his fund – are protected and represented.
The Board will review Deep Track's materials and, if appropriate, present its formal recommendation regarding director nominations in its proxy statement, which will be filed with the
Goldman Sachs & Co. LLC is serving as financial advisor to Dynavax and Cooley LLP is serving as legal counsel.
WHAT IS HEPLISAV-B? HEPLISAV-B is a shot given to adults 18 years of age and older to help prevent infection caused by the hepatitis B virus.
HEPLISAV-B is usually given in the arm muscle. HEPLISAV-B is given in 2 doses, 1 month apart, by a healthcare provider.
IMPORTANT SAFETY INFORMATION If you have a history of severe allergic reaction after a previous dose of any hepatitis B vaccine, or to any ingredient of HEPLISAV-B, including yeast, do not take HEPLISAV-B.
HEPLISAV-B must be given by a medical professional, who will monitor you afterwards, to check for allergic reaction.
If you are immunocompromised, or receiving immunosuppressant therapy, you may have less of an immune response to HEPLISAV-B.
Some people have hepatitis B infection without being aware of it or showing any symptoms. If you already have hepatitis B present in your body, HEPLISAV-B may not prevent hepatitis B infection.
The most common side effects include pain at the injection site, tiredness, and headache.
HEPLISAV-B was not studied in pregnant or nursing women. Tell your provider if you are pregnant or plan to become pregnant or are breast feeding.
Vaccination with HEPLISAV-B may not protect all individuals.
Talk to your healthcare provider to determine if HEPLISAV-B is right for you.
Please see full Prescribing Information
About Dynavax
Dynavax is a commercial-stage biopharmaceutical company developing and commercializing innovative vaccines to help protect the world against infectious diseases. The Company has two commercial products, HEPLISAV-B® vaccine [Hepatitis B Vaccine (Recombinant), Adjuvanted], which is approved in the
Forward-Looking Statements
This press release contains "forward-looking" statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which are subject to a number of risks and uncertainties. All statements that are not historical facts are forward-looking statements. Forward-looking statements can generally be identified by the use of words such as "anticipate," "believe," "continue," "could," "estimate," "expect," "forecast," "intend," "will," "may," "plan," "project," "potential," "seek," "should," "think," "toward," "will," "would" and similar expressions, or the negatives thereof, or they may use future dates. Forward-looking statements made in this document include statements regarding the Company's plans to submit a declassification proposal at its 2025 Annual Meeting, expected contributions from newly appointed directors, the planned resignation of certain directors, expectations regarding delivering value for our stockholders, and our future growth and long-term performance. Actual results may differ materially from those set forth in this press release due to the risks and uncertainties inherent in our business, including, the risk that circumstances surrounding or leading up to our 2025 Annual Meeting may change, risks relating to our ability to commercialize and supply HEPLISAV-B, and risks related to the implementation of our long-term growth objectives, as well as other risks detailed in the "Risk Factors" section of our Quarterly Report on Form 10-Q for the three months ended September 30, 2024 and periodic filings made thereafter, as well as discussions of potential risks, uncertainties and other important factors in our other filings with the U.S. Securities and Exchange Commission. These forward-looking statements are made as of the date hereof, are qualified in their entirety by this cautionary statement and we undertake no obligation to revise or update information herein to reflect events or circumstances in the future, even if new information becomes available. Information on Dynavax's website at www.dynavax.com is not incorporated by reference in our current periodic reports with the SEC.
Important Additional Information and Where to Find It
The Company intends to file a proxy statement, an accompanying proxy card (which in the case of a contested meeting would be the GOLD universal proxy card) and other relevant documents with the SEC in connection with the solicitation of proxies for the Company's 2025 annual meeting of stockholders (the "2025 Annual Meeting"). STOCKHOLDERS OF THE COMPANY ARE STRONGLY ENCOURAGED TO READ SUCH PROXY STATEMENT, ACCOMPANYING PROXY CARD AND OTHER RELEVANT DOCUMENTS FILED WITH, OR FURNISHED TO, THE SEC CAREFULLY AND IN THEIR ENTIRETY WHEN THEY BECOME AVAILABLE AS THEY WILL CONTAIN IMPORTANT INFORMATION. Stockholders will be able to obtain a copy of the Company's proxy statement, accompanying proxy card, any amendments or supplements to the proxy statement and any other relevant documents filed by the Company with the SEC at no charge at the SEC's website at www.sec.gov. Copies will also be available at no charge at the Company's website at https://investors.dynavax.com/sec-filings.
Participants in the Solicitation
This press release is neither a solicitation of a proxy or consent nor a substitute for any proxy statement or other filings that may be made with the SEC. Dynavax, its directors and certain of its executive officers may be deemed to be participants in the solicitation of proxies for the 2025 Annual Meeting. Information about Dynavax's directors and executive officers , including their respective direct or indirect interests, by security holdings or otherwise, is available in the Company's proxy statement on Schedule 14A for its 2024 annual meeting of stockholders, filed with the SEC on April 11, 2024 (available here). To the extent holdings of Dynavax securities reported in the proxy statement have changed, such changes have been or will be reflected on Statements of Change in Ownership on Forms 3, 4 or 5 filed with the SEC. Updated information regarding the identity of potential participants and their direct or indirect interests, by security holdings or otherwise, will be set forth in the Company's proxy statement for the 2025 Annual Meeting and other relevant documents filed with the SEC in connection with the 2025 Annual Meeting when they become available. These documents are or, when they become available, will be available free of charge at the SEC's website at www.sec.gov.
For Investors:
Paul Cox
pcox@dynavax.com
510-665-0499
or
MacKenzie Partners, Inc.
Bob Marese/John Bryan
Toll-Free: 1-800-322-2885
Email: DVAX@mackenziepartners.com
For Media:
Collected Strategies
Dan Moore / Tali Epstein
Dynavax-CS@collectedstrategies.com
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SOURCE Dynavax Technologies
FAQ
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