Pipeline updates are highly awaited events in the pharma/biotech sector as they play an important role in deciding whether or not to invest in a particular company. Pipelines are of prime importance as far as pharma/biotech companies are concerned. These companies spend a significant amount in advancing their pipelines.
Dynavax Technologies Corp. (DVAX) recently received a $5.4 million milestone payment from collaboration partner AstraZeneca (AZN).
We note that Dynavax entered into a three-year research collaboration and license agreement with AstraZeneca in Sep 2006 for the discovery and development of TLR9 agonist-based therapies for the treatment of asthma and chronic obstructive pulmonary disease. The agreement was amended in Oct 2011 wherein Dynavax was responsible for initial development of AZD1419.
Dynavax and AstraZeneca have now further amended their research collaboration and license agreement. As per the amended agreement, AstraZeneca is now responsible for further clinical trials following the completion of the ongoing phase I clinical study on asthma candidate AZD1419.
We remind investors that Dynavax initiated dosing in a phase I study in Oct 2013 which is being conducted to assess the safety of inhaled doses of AZD1419 in up to 45 healthy subjects which will then be followed by up to 24 patients suffering from mild asthma.
Excluding the current payment, Dynavax is entitled to potential milestone payments of approximately $100 million. In addition, the company will receive royalties on sales of any approved products globally along with an opportunity to co-promote in the U.S.
Meanwhile, Dynavax is striving hard to get its hepatitis B vaccine candidate, Heplisav, approved in the U.S. and EU.
Since Dynavax does not have any other approved product in its portfolio, we expect investor focus to remain on Heplisav updates in the near term.
Dynavax currently carries a Zacks Rank #2 (Buy). Right now, Gilead Sciences (GILD) and Biogen Idec (BIIB) also look well placed. Both carry a Zacks Rank #1 (Strong Buy).
To read this article on Zacks.com click here.
Get all Zacks Research Reports and be alerted to fast-breaking buy and sell opportunities every trading day.
Be the first to comment