What happened
Dynavax Technologies (DVAX 4.06%), a biotech considered by some to be a coronavirus stock, outpaced the broader market on Wednesday. The company's shares rose by 5.6%, on the back of a significant price-target increase from an analyst.
So what
That analyst is Edward White of H.C. Wainwright, who this morning lifted his price target on the stock to $28 from the previous $23, while maintaining his buy recommendation.
Image source: Getty Images.
This didn't occur out of the blue. On Tuesday, India's Biological E announced that its coronavirus vaccine candidate Corbevax had received approval for emergency use from that country's pharmaceutical regulator, the Drugs Controller General. Corbevax utilizes Dynavax's CpG 1018 adjuvant to maximize its effectiveness. An adjuvant is a substance used in vaccines to create a stronger immune response from the body.
The American company's involvement in the Indian jab should be a compelling piece of business.
Dynavax quoted its CEO Ryan Spencer as saying, "We have secured the capacity to deliver on our commitment to supply CpG 1018 adjuvant to Biological E to meet their needs for their existing contract with the Indian government for 300 million doses, as well as any additional adjuvant required to fulfill future demand in 2022 and beyond."
Now what
The Corbevax authorization isn't White's only reason for upping his target price on Dynavax stock. He pointed out that the biotech is presently involved in three other coronavirus vaccine projects. As ever in the biotech world, there's no guarantee that any will come to market, but this shows that CpG 1018 is a compelling product that should benefit Dynavax as long as the coronavirus remains a threat.
