Markets

Here's Why Dynavax Is Surging 6.1% Today

What happened

Dynavax's (NASDAQ: DVAX) shares are climbing 6.1% as of 3:35 p.m. EDT on Tuesday after the company announced the first patients have been dosed in an early stage trial evaluating a COVID-19 vaccine containing its CpG 1018 adjuvant.

So what

Medicago, a private company owned by Mitsubishi Tanabe Pharma (OTC: MTZXF) and Philip Morris International (NYSE: PM), is evaluating whether Dynavax's adjuvant enhances immune responses to its plant-derived COVID-19 vaccine.

A syringe resting next to a jig saw puzzle piece displaying the word vaccine.

Image source: Getty Images.

The phase 1 trial is enrolling 180 people to evaluate three dose levels of Medicago's plant-derived coronavirus-like particle COVID-19 vaccine. Participants will receive either Medicago's vaccine on its own or in combination with Dynavax's adjuvant or an adjuvant made by competitor GlaxoSmithKline (NYSE: GSK).

The healthcare company expects preliminary safety and efficacy data from this trial in October. If successful, Medicago plans to initiate a phase 3 trial soon thereafter.

Now what

Dynavax isn't developing its own vaccine, but it has inked deals with other companies to incorporate its adjuvant into their efforts, giving it multiple shots on goal.

There's no telling if Dynavax's adjuvant will work, but the fact it's already used in Dynavax's FDA-approved hepatitis B vaccine -- Heplisav-B -- is encouraging. 

Nonetheless, since a flurry of COVID-19 vaccine research is under way and it remains to be seen which projects pan out or if one vaccine works better than another, investors might want to approach Dynavax cautiously until more data is available. 

10 stocks we like better than Dynavax Technologies
When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*

David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and Dynavax Technologies wasn't one of them! That's right -- they think these 10 stocks are even better buys.

See the 10 stocks

 

*Stock Advisor returns as of June 2, 2020

 

Todd Campbell has no position in any of the stocks mentioned. His clients may have positions in the companies mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

In This Story

DVAX GSK PM

Latest Markets Videos

    The Motley Fool

    Founded in 1993 in Alexandria, VA., by brothers David and Tom Gardner, The Motley Fool is a multimedia financial-services company dedicated to building the world's greatest investment community. Reaching millions of people each month through its website, books, newspaper column, radio show, television appearances, and subscription newsletter services, The Motley Fool champions shareholder values and advocates tirelessly for the individual investor. The company's name was taken from Shakespeare, whose wise fools both instructed and amused, and could speak the truth to the king -- without getting their heads lopped off.

    Learn More