Please ensure Javascript is enabled for purposes of website accessibility

Why Dynavax Shares Are Jumping Today

By Keith Speights – Updated Jun 19, 2020 at 11:33AM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

An early-stage clinical study has begun evaluating a COVID-19 vaccine candidate that features Dynavax's adjuvant.

What happened

Shares of Dynavax Technologies (DVAX 0.00%) were jumping 11.4% as of 11:13 a.m. EDT on Friday after the company announced that the first participants have been dosed in a phase 1 study evaluating Clover Biopharmaceuticals' COVID-19 vaccine SCB-2019. The vaccine contains Dynavax's CpG 1018 adjuvant to boost immune responses.

So what

Investors continue to be intensely interested in the prospects for COVID-19 vaccines. Nearly any announcement of progress with coronavirus vaccine development is a catalyst for the biotech stocks involved. That's what happened with Dynavax today.

Gloved hand holding syringe with "Covid-19 vaccination" printed on the label

Image source: Getty Images.

To be sure, any good news for SCB-2019 is good news for Dynavax. The biotech signed a deal in March with Clover, a private company, to evaluate SCB-2019 with Dynavax's CpG 1018 adjuvant. While SCB-2019 is unproven at this point, CpG 2018 isn't. The adjuvant is already used with Dynavax's Heplisav-B hepatitis B vaccine.

It's still very early, though. Clover and Dynavax have a long way to go before SCB-2019 can be declared a success. Meanwhile, there are 13 other coronavirus vaccine candidates already in clinical testing, with at least three of them in phase 2 studies, putting them well ahead of Clover and Dynavax.

Now what

Dynavax stated that preliminary results from Clover's phase 1 study should be available in August. Investors will certainly want to closely watch how promising the results for SCB-2019 are. Dynavax's CpG 2018 adjuvant is also being used in three other experimental COVID-19 vaccines.

Keith Speights has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Dynavax Technologies Corporation Stock Quote
Dynavax Technologies Corporation
$10.24 (0.00%) $0.00

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
S&P 500 Returns

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 09/24/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.