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

Investors in Dynavax Technologies (DVAX) face a defining moment: vote for a board that has delivered 203% total shareholder returns since 2020—far outpacing peers’ 9% gains and the S&P Biotechnology Index’s -17% decline—or support Deep Track Capital’s radical “monetize now” agenda that risks dismantling the company’s hard-won growth engine. This is no ordinary proxy contest; it’s a choice between strategic governance rooted in science and execution versus a high-stakes gamble on short-term liquidity.

The Case for Dynavax’s Governance: Expertise, Execution, and Vision

Dynavax’s board has built a repeatable model of value creation over the past five years, leveraging its proprietary CpG 1018 adjuvant technology to drive dominance in the hepatitis B vaccine market and fuel innovation in pandemic preparedness. Key pillars of its success include:

1. HEPLISAV-B® Dominance:
2. $268M in 2024 net product revenue, with a 44% U.S. market share.
3. 36% year-over-year revenue growth in Q1 2025, underscoring sustained demand.

4. A $950M revenue run rate since 2020, fueled by pandemic-era adoption and long-term patient needs.

5. Disciplined Capital Allocation:

6. Completed 85% of its $200M share repurchase program by May 2025, returning capital to shareholders while retaining flexibility for growth.

7. Maintained a $350M+ cash position, ensuring liquidity for pipeline advancements.

8. Pipeline Momentum:

9. Pandemic influenza vaccine: Entering Phase 1/2 trials in Q2 2025, addressing a $4.4B global market.
10. Lyme disease vaccine: Targeted for clinical development by 2027, capitalizing on rising demand for tick-borne disease prevention.
11. Shingles vaccine: Leveraging CpG 1018 to improve efficacy over existing therapies.

Why Deep Track’s “Monetize Now” Play is a Recipe for Value Destruction

Deep Track’s proposal to monetize HEPLISAV-B® via royalty financing and distribute all cash to shareholders—while halting pipeline investments—is a dangerous detour. Here’s why:

• Risk to HEPLISAV-B® Leadership: A fire sale would dilute the company’s stake in its crown jewel, inviting competitors to erode its 44% market share.
• Pipeline Stagnation: Halting R&D would abandon $ billions in untapped opportunities, such as the $4.4B pandemic flu market.
• Short-Termism Costs: A one-time cash payout ignores the compounding value of a diversified vaccine portfolio. Dynavax’s 203% TSR since 2020 was built on balancing growth and returns—Deep Track’s approach sacrifices both.

The Gold Standard of Governance: Board Expertise Meets Market Realities

Dynavax’s board is not a group of Wall Street suits; it’s a scientific and commercial dream team:

• Dr. Richard Miller: Former CEO of Merck’s vaccines division, with decades of experience in regulatory approvals and global commercialization.
• Dr. Steven Hoge: Biotech veteran with expertise in adjuvant technologies, critical to advancing the CpG 1018 pipeline.
• Dr. Maria Elena Bottazzi: Renowned vaccine developer, pivotal in navigating pandemic-driven market shifts.

Their track record speaks for itself: under their leadership, Dynavax has grown HEPLISAV-B® from a niche product to a market leader while advancing a pipeline that could redefine its valuation.

Investment Thesis: Vote FOR Dynavax’s Board—Act Now

This proxy vote is a binary call on Dynavax’s future:
- FOR (Gold): Retain the board that delivered 203% returns since 2020. Safeguard HEPLISAV-B® leadership. Unlock multi-billion-dollar pipeline value.
- AGAINST (Deep Track): Accept a one-time payout that risks long-term collapse. Bet on a single transaction over a sustainable model.

The math is irrefutable: Dynavax’s disciplined strategy has outperformed peers and indices by 220%+ over five years. Voting FOR the board protects this trajectory.

Final Verdict: Growth is Not a Luxury—It’s a Necessity

In a sector as volatile as biotechnology, survival hinges on two things: execution excellence and strategic patience. Dynavax’s board has mastered both. Deep Track’s proposal offers a siren song of instant gratification but ignores the cold reality of vaccine development’s long timelines and high stakes.

Act now: Vote FOR the Dynavax board (GOLD proxy) to preserve and amplify the company’s value. The alternative—Deep Track’s myopic agenda—is a gamble shareholders cannot afford to lose.

Disclosure: This article is for informational purposes only and not a recommendation to buy or sell securities.