- Deep Track Capital criticizes Institutional Shareholder Services (ISS) for inadequate analysis of Dynavax Technologies (DVAX, Financial) board performance.
- The investment firm highlights Dynavax’s recent market struggles and governance issues, urging shareholders to consider their board nominees.
- Dynavax’s market share declined to 43% in Q1 2025, below targets, further impacting stock value.
Deep Track Capital, one of the significant shareholders of Dynavax Technologies Corporation (DVAX), has publicly criticized the recent recommendation by Institutional Shareholder Services (ISS) concerning the election of directors at Dynavax’s 2025 Annual Meeting. Deep Track, holding approximately 14.82% of Dynavax's outstanding shares, argues that ISS's report lacks comprehensive analysis and fails to address critical issues related to the company’s board performance.
The firm highlighted several key concerns, including the stagnation of Dynavax’s Heplisav market share, which fell to 43% in the first quarter of 2025, short of the board's set target of 47%. Additionally, Dynavax's share price plummeted by 11% following the release of disappointing Q1 results, pointing to ongoing issues with corporate governance and strategic execution.
Deep Track further criticized the board's inability to capitalize on cash reserves or to enhance shareholder value through better capital allocation. Despite Dynavax extracting significant value during the pandemic, shares have declined 23% year-to-date, showcasing a consistent pattern of underperformance relative to peers like the Nasdaq Biotech Index.
In light of these challenges, Deep Track urges Dynavax shareholders to vote for their slate of director nominees who possess the necessary expertise to transform the company's strategic direction and governance. Deep Track asserts that its candidates can provide the innovative insights needed to tackle the existing operational challenges and drive long-term shareholder value.
