Jefferies Encourages Investors to Buy Shares of Dynavax Technologies (DVAX) on Weakness

Although investors are raising concerns with two new disclosures in the new Phase 3 data for Heplisav, Jefferies is maintaining its Buy rating and $4 price target on shares of Dynavax Technologies (NASDAQ: DVAX).

The firm notes that the two major concerns are the lack of statistical comparability among the three lots of vaccine tested, and a slight imbalance in autoimmune events in the Heplisav arm.

This comes as the company announced that the three Heplisav lots for determining manufacturing consistency missed the pre-defined criteria for comparability specified by the FDA.

Jefferies encourages investors to take advantage of the current weakness in the stock as they only forecast a six to nine month delay as a result.

Jefferies is reiterating its 2011 EPS estimate of ($0.50), but is raising its 2012 estimate from ($0.26) to ($0.12). The firm anticipates that DVAX with see EPS of $0.38 in 2013.

For more ratings news on Dynavax Technologies click here and for the rating history of Dynavax Technologies click here.

Shares of Dynavax Technologies closed at $3.16 yesterday.

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