William Blair Downgrades Dynavax to Market Perform, Acquisition Price $15.50
Written by Emily J. Thompson, Senior Investment Analyst
William Blair downgraded Dynavax (DVAX) to Market Perform from Outperform after Sanofi (SNY) announced it will acquire the company for $15.50 per share. The analyst, who believes the acquisition "makes sense" given growing regulatory concerns around vaccines and investor questions on management's strategy for value creation, calls Sanofi a "logical acquisition partner."
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Analyst Views on DVAX
Wall Street analysts forecast DVAX stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for DVAX is 20.50 USD with a low forecast of 16.00 USD and a high forecast of 25.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
3 Analyst Rating
2 Buy
1 Hold
0 Sell
Moderate Buy
Current: 15.480
Low
16.00
Averages
20.50
High
25.00
Current: 15.480
Low
16.00
Averages
20.50
High
25.00
About DVAX
Dynavax Technologies Corporation is a commercial-stage biopharmaceutical company developing and commercializing vaccines to help protect against infectious diseases. The Company has two commercial products: HEPLISAV-B vaccine (Hepatitis B Vaccine (Recombinant), Adjuvanted), and CpG 1018 adjuvant. The HEPLISAV-B vaccine is used for the prevention of infection caused by all known subtypes of hepatitis B virus in adults 18 years of age and older. HEPLISAV-B is a two-dose in-one-month adult hepatitis B vaccine. CpG 1018 adjuvant is used in HEPLISAV-B and multiple adjuvanted COVID-19 vaccines. The Company is advancing a pipeline of differentiated product candidates that leverage its CpG 1018 adjuvant to develop improved vaccines in indications with unmet medical needs. Its pipeline programs include Shingles vaccine program (Z-1018) and Plague vaccine program. Z-1018 is an investigational vaccine candidate being developed for the prevention of shingles in adults aged 50 and older.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Ocular Therapeutix Rejects Sanofi's Bid, Stock Surges 13%
- Acquisition Proposal: Ocular Therapeutix rejected Sanofi's initial takeover bid of $16 per share in September, which represented a significant premium over its then-trading price of approximately $10.50, indicating Sanofi's interest in expanding its ophthalmology footprint.
- Market Reaction: Following the acquisition news, Ocular Therapeutix's stock surged 13% in premarket trading, reflecting investor optimism regarding the potential acquisition, while OCUL shares have gained about 34% over the past year.
- Strategic Implications: If the acquisition goes through, it would bolster Sanofi's market position in ophthalmology, particularly in age-related macular degeneration treatments, and could support the development of combination therapies by integrating Ocular's existing drugs with Sanofi's portfolio.
- Acquisition Trend: Sanofi has ramped up its acquisition strategy recently, acquiring Dynavax for $2.2 billion and Blueprint Medicines for $9.1 billion, aiming to enhance its vaccine and rare disease treatment offerings.
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Dynavax (DVAX) Shares Rise 1.9% as New Bidder Emerges Post-Sanofi Deal
- New Bidder Emergence: Following the agreement with Sanofi for a $2.2 billion acquisition, Dynavax (DVAX) shares rose 1.9%, indicating market interest in potential competing bids that could affect the final deal outcome.
- Acquisition Details: Sanofi agreed to acquire Dynavax at $15.50 per share, representing a 39% premium over the closing price on December 23, reflecting market confidence in the transaction and expectations for Dynavax's future value.
- Competitive Interest: On December 28, an unidentified 'Party A' expressed continued interest in Dynavax and sent an unsolicited email to CEO Spencer, highlighting ongoing market interest and potential acquisition competition.
- Management Response: According to a proxy filing, Spencer did not respond to 'Party A's' email and informed the Board, a move that could influence the negotiation process and strategic direction for Dynavax.
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