Voting FOR Dynavax's Directors: A Prudent Bet on Long-Term Biotech Value

The upcoming shareholder vote at Dynavax Technologies (DVAX) is no ordinary corporate governance check—it's a defining moment for investors seeking to preserve and amplify long-term value. Institutional Shareholder Services (ISS) has unequivocally endorsed the re-election of Dynavax's current board, rejecting Deep Track Capital's campaign to replace directors with outsiders. This recommendation underscores the peril of Deep Track's “strip-mining” strategy, which prioritizes short-term gains over the company's proven track record of shareholder returns and its promising pipeline. Voting FOR Dynavax's directors is not just a vote of confidence in management—it's a strategic bet on sustained growth in a sector where expertise and patience pay dividends.

The Case for Dynavax's Proven Leadership

Dynavax's board has delivered 203% total shareholder returns since 2020, outpacing peers in a volatile biotech landscape. This performance is no accident: it stems from a deliberate focus on executing its core mission—developing life-saving therapies using its proprietary immunostimulatory sequence (ISS) technology. The stock's five-year journey—from a 2020 low of $2.27 to a 2021 high of $20.94—reflects the board's ability to capitalize on breakthroughs like its hepatitis B vaccine, HEPLISAV-B, which generated $277 million in annual revenue in 2024.

Why Deep Track's “Strip-Mining” Threatens Value

Deep Track's proposal to replace Dynavax's biotech-savvy directors with outsiders signals a dangerous shift toward short-termism. Their advocacy for a “total shareholder return (TSR) metric” ignores the realities of biotech innovation, where clinical trial timelines and regulatory hurdles demand patience. ISS rightly dismissed this approach as flawed, noting that Deep Track's TSR analysis excluded critical factors like the company's pipeline progress and strategic partnerships.

Replacing Dynavax's board with inexperienced outsiders would jeopardize:
1. HEPLISAV-B's Commercial Momentum: The vaccine's 15% annual revenue growth since 2021 hinges on disciplined execution, not cost-cutting.
2. Diversified Pipeline: Late-stage candidates in allergy and chronic inflammatory therapies—built under current leadership—are poised to drive multi-year growth.
3. Regulatory Credibility: Dynavax's 2023 FDA approvals for expanded HEPLISAV-B indications were secured through deep industry expertise, not financial engineering.

A Biotech Industry in Flux Demands Steady Hands

The biotech sector is bifurcating: companies with strong pipelines and seasoned leadership (like Dynavax) are outperforming those chasing quick profits. ISS's rejection of Deep Track's strategy reflects a broader recognition that biotech value creation is a marathon, not a sprint.

Consider the risks of disruption:
- Opportunity Cost: Redirecting capital to short-term initiatives could stall pipeline advancements.
- Talent Exodus: A leadership overhaul might deter top scientists and executives critical to clinical trials.
- Market Sentiment: Shareholder uncertainty could amplify the stock's volatility (as seen in 2025's 23% YTD decline).

The Bottom Line: Vote FOR Sustained Value

Dynavax's board has a track record of turning R&D into revenue. Its 203% five-year returns and HEPLISAV-B's dominance in its category are proof of this. Voting AGAINST Deep Track's nominees would preserve a governance structure that:
- Balances innovation with financial discipline.
- Prioritizes long-term pipeline growth over quick wins.
- Aligns with ISS's trust in management's strategic vision.

Investors who value stability and growth in a high-risk sector should heed ISS's advice. Voting FOR Dynavax's directors isn't just about today's stock price—it's about securing a seat at the table of a company primed to redefine biotech value for years to come.

Act Now: Exercise your vote to protect Dynavax's trajectory—before short-termism derails its potential.