Investor Deep Track Launches Proxy Fight at Dynavax, Nominates 4 Directors

In a move that could reshape the leadership and strategic direction of Dynavax Technologies Corporation (DVAX), investor Deep Track Capital has launched a proxy fight, nominating four directors to stand for election at the company's 2025 Annual Meeting of Stockholders. Deep Track, which owns approximately 13.53% of Dynavax's outstanding shares, has expressed concerns about the company's misguided acquisition strategy and the need for truly independent voices on the board.

Deep Track's letter to fellow shareholders, dated February 19, 2025, details its concerns and outlines the reasons behind its nomination of four candidates: Jeffrey Farrow, Donald Santel, Brett Erkman, and a shareholder representative. The investor group believes that the current board's poor governance, reactive entrenchment maneuvers, and unwillingness to work constructively have prevented Dynavax from maximizing the benefit of Heplisav for shareholders and patients.

The nominees bring valuable shareholder perspective, independence, life sciences background, capital allocation experience, and operational expertise to the Dynavax boardroom. Deep Track argues that its slate of director nominees would collectively bring a valuable shareholder perspective and necessary life sciences background, capital allocation experience, and operational expertise to the Dynavax Board.

Deep Track's proposed strategy for Dynavax focuses on maximizing the potential of Heplisav-B, the company's hepatitis B vaccine, and abandoning external asset acquisitions. The investor group believes that focusing on Heplisav could result in nearly $2 billion of cash being returned to shareholders by the end of 2030. By abandoning external asset acquisitions, Deep Track aims to reduce distractions and avoid value-destroying acquisitions.

However, Deep Track's plan also carries potential risks, such as loss of diversification and missed opportunities. The long-term growth prospects of Dynavax will depend on how effectively the company can manage these risks and capitalize on the potential benefits of this strategy.

The proxy fight at Dynavax highlights the ongoing debate between investors and management regarding the best path forward for the company. As the annual meeting approaches, shareholders will have the opportunity to weigh in on the future direction of Dynavax by casting their votes for the board nominees they believe will best drive long-term stockholder value.