Earnings Results Analysis: Dynavax Technologies Corporation (NASDAQ: DVAX)

EMERYVILLE, Calif., November 19, 2019 – Shares of Dynavax Technologies Corporation (NASDAQ: DVAX) showed no change to $5.83. The company traded total volume of 718.940K shares as contrast to its average volume of 1.31M shares. The company has a market value of $488.90M and about 83.86M shares outstanding.

For the second quarter of 2019, Dynavax Technologies Corporation (DVAX) reported net product revenue of $8.30M, compared to $1.30M for the second quarter of 2018. Net product revenue for the six months ended June 30, 2019, was $13.90M, compared to $1.40M for the six months ended June 30, 2018. Product revenue from sales is recorded at the net sales price, which reflects reductions for estimated product returns, chargebacks, discounts and other fees.

Cost of Sales – Product: Cost of sales – product, for the second quarter of 2019 was $2.10M, compared to $5.20M for the second quarter of 2018. Cost of sales – product, for the six months ended June 30, 2019, was $3.90M, compared to $5.40M for same period in 2018. The quarter ended June 30, 2018 included costs relating to excess capacity at the company’s manufacturing facility in Düsseldorf, Germany, which were previously included in research and development expense. The 2018 excess capacity charge is a result of costs associated with resuming operating activities at the Düsseldorf facility after receiving regulatory approval of pre-filled syringes (“PFS”) of HEPLISAV-B in late March 2018. Included in cost of sales – product for both periods are fill, finish and overhead costs for HEPLISAV-B incurred after U.S. Food and Drug Administration (FDA) approval. A higher percentage of HEPLISAV-B inventory sold in 2019 used components manufactured after FDA approval compared to 2018, when most of the expense associated with product sold was expensed to research and development prior to approval. The company expects HEPLISAV-B cost of sales will increase in future periods, both in absolute dollars and as a percentage of product revenue, as we produce and then sell inventory that reflects the full cost of manufacturing the product.

R&D Expenses: Research and development expenses for the second quarter of 2019 were $16.20M, compared to $16.30M for the second quarter of 2018. Research and development expenses for the six months ended June 30, 2019, were $37.40M, compared to $35.20M for the same period in 2018. In May 2019, the company announced a strategic organizational restructuring to align its operations around its vaccine business and significantly curtail further investment in immuno-oncology research and development.

SG&A Expenses: Selling, general and administrative expenses for the second quarter of 2019 were $17.90M, compared to $15.70M for the second quarter of 2018. Selling, general and administrative expenses for the six months ended June 30, 2019 were $36.20M, compared to $32.50M for the same period in 2018. The increase was due primarily to additional personnel in support of HEPLISAV-B commercial activities.

Net Loss: Net loss for the second quarter of 2019 was $42.70M, or $0.66 per basic and diluted share, compared to a net loss of $39.40M, or $0.63 per basic and diluted share, for the second quarter of 2018. Net loss for the six months ended June 30, 2019, was $82.40M, or $1.28 per basic and diluted share, compared to a net loss of $78.40M, or $1.26 per basic and diluted share for the six months ended June 30, 2018.

Cash Position: Cash, cash equivalents and marketable securities totaled $140.50M at June 30, 2019.

The Company offered gross profit margin of 37.90%. ROE was recorded as -408.00% while beta factor was 0.56. The stock, as of recent close, has shown the weekly upbeat performance of 10.84% which was maintained at -36.28% in this year.

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