Please ensure Javascript is enabled for purposes of website accessibility

Why Dynavax Stock Is Crushing It Today

By Keith Speights - Updated Feb 26, 2021 at 11:12AM

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

The biotech's better-than-expected Q4 update pointed to even better days ahead.

What happened

Shares of Dynavax Technologies (DVAX -3.40%) were soaring 18.8% as of 10:50 a.m. EST on Friday. The big gain came after the company announced better-than-expected fourth-quarter results after the market close on Thursday. 

So what

Dynavax reported fourth-quarter revenue of $19.6 million, well above the average analyst estimate of $13.1 million. And while the company posted a net loss of $15.5 million, or $0.14 per share, its bottom line trended in a positive direction from the prior-year period and was a lot better than the $0.24 loss expected by Wall Street.

Hand holding vaccine vial and syringe with a microscope, test tube rack, and scientists in the background

Image source: Getty Images.

But the main reason behind the huge jump for the biotech stock today wasn't what Dynavax accomplished in the fourth quarter. Instead, investors were excited about what's on the way.

Dynavax expects to make between $40 million and $60 million in the first quarter of this year from its CpG 1018 vaccine adjuvant. The midpoint of that range is more than the company's total revenue in 2020. Even better, CEO Ryan Spencer said that CpG 1018 could be used in up to 500 million to 1.5 billion doses of vaccine annually starting in 2022.

In the past, Dynavax's fortunes were largely dependent on its hepatitis B vaccine Heplisav-B. The vaccine is still a major growth driver for the company, but its CpG 1018 adjuvant is what's firing up investors right now -- and deservedly so.

Now what

Throughout this year, look for results from Dynavax's collaboration partners that are using CpG 1018 as an adjuvant to their experimental vaccines. The company also expects to launch Heplisav-B in Europe in the fourth quarter.

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
DVAX
$10.80 (-3.40%) $0.38

*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 service.

Stock Advisor Returns
330%
 
S&P 500 Returns
115%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 05/22/2022.

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.