- Deep Track Capital, holding approximately 14.82% of Dynavax Technologies (DVAX, Financial), urges shareholders to elect four new directors to the board.
- The call for change stems from repeated failures in meeting sales targets for Heplisav and Dynavax's underperformance in share price relative to benchmarks.
- The impending 2025 Annual Meeting on June 11 presents a crucial chance for shareholders to instigate strategic change through new board members.
Deep Track Capital, a major shareholder in Dynavax Technologies Corporation (DVAX), has issued a formal letter to fellow shareholders advocating the election of four new board nominees at the upcoming 2025 Annual Meeting on June 11. Deep Track, which owns around 14.82% of DVAX's outstanding shares, argues that new perspectives are essential to rectify persistent underperformance issues.
According to Deep Track, Dynavax's core product, Heplisav, has fallen short of its U.S. sales target for 2024, reaching only $268 million against a projected $275 million. The U.S. market share in the fourth quarter was 44%, missing the target by 3 percentage points. These discrepancies have raised concerns about the company's strategic direction and capital allocation, prompting Deep Track to push for board changes.
Despite previous attempts to focus on Heplisav, Dynavax's stock price continues to underperform, registering a 17% decline over one year compared to a 6% drop in the Nasdaq Biotechnology Index. Deep Track believes that this stagnation is a consequence of the management's current approach and that without new voices in the boardroom, strategic issues will remain unaddressed.
Deep Track emphasizes the urgency of the situation, as this year's meeting represents a unique opportunity to influence significant change given the limited director elections scheduled before 2028. The investment firm refutes mischaracterizations of its intentions, stating its long-term commitment to Dynavax's success and the potential long-term value its nominees could bring to the board.
