Goldman Sachs downgraded Dynavax Technologies Corporation (NASDAQ:DVAX) reflecting updated views and recent competitive dynamics for vaccines.

Goldman Sachs analyst Paul Choi has downgraded Dynavax to Sell from Neutral and cut the price target from $15 to $12. He notes growing competition in the shingles vaccine market, which could reduce the potential value of the Z-1018 program and add uncertainty to its long-term revenue.

Potential convenience improvements come from GSK Plc's (NYSE:GSK) Shingrix with the company's pre-filled syringes, which have been accepted for review by both the FDA and EMA (U.S. decision expected by 20 June).

Dynavax is conducting a Phase 1/2 trial to evaluate the safety, tolerability, and immunogenicity of Z-1018 compared to GSK's Shingrix in 441 healthy adults aged 50 to 69.

Choi also points to uncertain demand for repeat hepatitis B vaccinations in the 2030s, which may impact Heplisav-B's outlook beyond its peak sales. Despite its market share gains, questions remain about the FDA and ACIP's regulatory stance on vaccines in the U.S.

Last month, Dynavax announced preliminary HEPLISAV-B net product revenue of $268 million for 2024, up 26% year-over-year.

HEPLISAV-B net product revenue reached $71 million for the fourth quarter of 2024, up 39%.

In May 2024, the FDA issued a Complete Response Letter stating that the application did not provide sufficient data to fully evaluate the effectiveness or safety of a four-dose regimen of HEPLISAV-B. 

Dynavax is expected to report fourth-quarter earnings on 20 February.

As per data from Benzinga Pro, analysts estimate Q4 adjusted EPS of $0.04, with sales of $72.92 million.

Analysts forecast 2024 sales of $278.13 million and adjusted EPS of $0.12.

Price Action: DVAX stock is down 4.13% at $12.66 at last check Tuesday.

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This article Goldman Sachs Turns Bearish On Vaccine Maker Dynavax Amid Shingles And Hepatitis B Uncertainty originally appeared on Benzinga.com

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