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What: Shares of biotech Dynavax Technologies (NASDAQ:DVAX) jumped as much as 20% today, and finished up 13%, after positive results on its Hepislav vaccine.
So what: The FDA said today that the vaccine works on Hepatitis B, and that it's more effective than GlaxoSmithKline's (NYSE:GSK) Engerix-B. The agency has an advisory panel meeting set for November, and will decide on its approval on February 24. One analyst, Katherine Xu, of William Blair & Co., estimates that the drug could generate as much as $775 million in annual sales at its peak.
Now what: Based on the modest bounce in the stock, investors seemed to be expecting a positive outcome here. Assuming Hepislav gets approved and makes the projected levels of sales, the stock looks poised to climb, considering the company's market cap is still under $1 billion, and it has a pipeline with potential treatments for diseases such as the flu, asthma, and Hepatitis C.
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Jeremy Bowman has no positions in the stocks mentioned above. The Motley Fool owns shares of GlaxoSmithKline. Motley Fool newsletter services recommend GlaxoSmithKline. 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.