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What Does The Dynavax Restructuring News Mean For Shareholders?

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What Does The Dynavax Restructuring News Mean For Shareholders?

Dynavax Technologies Corporation (NASDAQ: DVAX) shares dropped about 8 percent Thursday after the company announced a cut of 38 percent of its workforce and a manufacturing suspension of its only product.

The biopharmaceutical company acted to cut monthly production costs of FDA-pending HEPLISAV-B — its Hepatitis B vaccine — to less than $1 million and drop annual operating costs below $60 million. According to a press release, Dynavax estimated this arrangement to reduce 40 percent of “cash burn.”

Restructuring costs will set the company back about $3 million in the first quarter of 2017, but management asserted that the strategy will ultimately improve financial standing.

The transition is also intended to help Dynavax focus on immuno-oncology therapies. It currently has two such products in the pipeline.

Dynavax halted trading for 40 minutes following the initial restructuring announcement, and shares immediately fell when trading resumed. At last check, shares were trading down2.84 percent at $4.28.

Posted-In: Biotech News Health Care Movers General Best of Benzinga

 

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