The outlook for herpes zoster and hepatitis B vaccines is uncertain. Goldman Sachs Group, Inc. is bearish on Dynavax Technologies Corporation (DVAX.US).

Goldman Sachs Group, Inc. has downgraded Dynavax Technologies Corporation (DVAX.US) from "Neutral" to "Sell" and lowered the target price from $15 to $12, citing unclear prospects for its shingles and hepatitis B vaccines. Goldman Sachs Group, Inc. analyst Paul Choi stated that the shingles vaccine market is becoming increasingly competitive, which may decrease the potential value of Dynavax Technologies Corporation's Z-1018 project and increase uncertainty in its long-term revenue. It is understood that GlaxoSmithKline plc Sponsored ADR (GSK.US) shingles vaccine, Shingrix, in a pre-filled syringe, is expected to improve ease of administration, with its market application already accepted by the US FDA and the European Medicines Agency (EMA). A decision is expected to be made in the US on June 20th. Dynavax Technologies Corporation is conducting a Phase 1/2 trial to evaluate the safety, tolerability, and immunogenicity of Z-1018 compared to Shingrix in 441 healthy adults aged 50 to 69. Choi also noted the uncertainty in the demand for repeat hepatitis B vaccinations in the 2030s, which could impact the prospects of Heplisav-B. Last month, Dynavax Technologies Corporation estimated that the net product revenue for HEPLISAV-B in 2024 would be $268 million, a 26% increase compared to the previous year. The net product revenue for HEPLISAV-B in the fourth quarter of 2024 reached $71 million, a 39% increase. In May 2024, the FDA issued a complete response letter, stating that the company did not provide enough data to fully evaluate the effectiveness or safety of the four-dose regimen of HEPLISAV-B. Dynavax Technologies Corporation is expected to release its fourth quarter earnings on February 20th. Market expectations are adjusted earnings per share of $0.04 and revenue of $72.92 million for the fourth quarter. Analysts forecast sales of $278 million and adjusted earnings per share of $0.12 for 2024. As of Tuesday's closing of the US stock market, Dynavax Technologies Corporation fell by 3.79% to $12.7.