Dynavax's Proxy Battle: A Crucial Crossroads for Long-Term Value Creation

Dynavax Technologies (DVAX) stands at a pivotal moment as its proxy battle with activist investor Deep Track Capital approaches its 2025 Annual Meeting. At stake is the future of a company that has delivered a stunning 203% total stockholder return over five years, outperforming its vaccine peers by a staggering margin. This article examines why voting FOR Dynavax's board nominees is critical to preserving its trajectory of disciplined growth, strategic capital allocation, and long-term value creation—while resisting short-termism.

Financial Performance: A Decade of Strategic Resilience

Dynavax's 203% total return from May 2019 to April 2025 is no accident. The company's pivot to prioritize its vaccine business—anchored by its FDA-approved HEPLISAV-B® hepatitis B vaccine—has driven sustained growth. HEPLISAV-B now commands a 44% U.S. market share, contributing $268 million in net product revenue in 2024 alone. This success, paired with a $200 million share repurchase program (85% completed by November 2024), underscores management's ability to balance returns with reinvestment.

The data paints a clear picture: while the S&P Biotechnology Index fell -17% over the same period, Dynavax's strategic focus allowed it to capitalize on its core strengths. Even in 2025, despite a -19.81% annual decline (likely tied to broader market sentiment), the company's fundamentals—strong HEPLISAV-B sales, diversified pipeline expansion, and disciplined governance—remain intact.

Governance and Expertise: A Board Built for Biotech's Challenges

Dynavax's board is not merely a collection of directors; it is a coalition of industry veterans with decades of experience in vaccine development, regulatory affairs, and capital markets. This expertise has been instrumental in navigating challenges such as the Deep Track proxy contest, which advocates for a more aggressive capital return strategy.

Proxy advisors ISS and Egan-Jones have both endorsed Dynavax's management, citing their “long-term value creation” focus and the risks posed by Deep Track's agenda. A short-term pivot to maximize immediate returns could jeopardize critical pipeline initiatives, such as programs targeting pandemic influenza and Lyme disease, which rely on sustained R&D investment.

Risks and the Case Against Short-Termism

Deep Track's push for higher dividends or a faster share buyback ignores the biotech sector's inherent volatility. While the -19.81% 2025 stock performance reflects market uncertainty, it also highlights the dangers of prioritizing quick wins over strategic stability. The board's decision to reinvest in its CpG 1018 adjuvant technology—a foundational asset for future vaccines—has already positioned Dynavax to capitalize on emerging public health needs.

Investment Thesis: Vote FOR Dynavax's Nominees

Investors should heed the proxy advisors and vote FOR the company's director nominees on the GOLD proxy card. The current leadership has proven its ability to:
1. Execute capital allocation: Balancing shareholder returns (via repurchases) with R&D investments.
2. Defend market share: HEPLISAV-B's dominance signals strong execution in a competitive space.
3. Diversify the pipeline: New programs in pandemic preparedness and Lyme disease address high-value, unmet medical needs.

While near-term volatility persists, Dynavax's long-term story—bolstered by its vaccine expertise and governance rigor—remains compelling. Short-termism may offer fleeting gains, but sustainable value requires patience and the board's proven strategy.

Final Call: For investors seeking biotech exposure with a track record of outperformance, Dynavax's proxy battle is a defining moment. Voting FOR the current slate safeguards its growth engine and rewards shareholders who prioritize longevity over quick fixes.

Data sources: Dynavax investor presentations, SEC filings, and market performance data through June 2025.