Wedbush Initiates Coverage On Dynavax With Outperform Rating

According to Wedbush, Dynavax Technologies (NASDAQ: DVAX) coverage is assumed with Outperform rating.

Wedbush reported that it is assuming coverage of DVAX with an OUTPERFORM rating and $6 fair value. “Our thesis centers on the conviction that HEPLISAV, Dynavax' lead product candidate for Hepatitis B, will report positive Phase III data in May and obtain approval in the US and EU by YE:2012. HEPLISAV benefits from remarkable efficacy in promoting seroconversion among treated patients. Not only does HEPLISAV appear to provide a significant benefit over standard-of-care in stimulating an antibody response to the Hepatitis B virus, but it also does so quicker and with fewer injections. Initially, we expect HEPLISAV to target patients whose antibody responses to current vaccines are often suboptimal (such as patients with chronic kidney disease, HIV/HCV, and also possibly diabetes mellitus). In these indications, we project revenues of $280 million by 2016 and full-year profitability by 2014. Further out, we believe it likely that HEPLISAV will also make inroads into the young and healthy population (although such patients are currently not incorporated into our valuation model).”

Dynavax Technologies closed yesterday at $2.63.