Dynavax Technologies’ Earnings Call: Record Growth Amid Challenges

Dynavax Technologies ((DVAX)) has held its Q1 earnings call. Read on for the main highlights of the call.

Dynavax Technologies recently held its earnings call, revealing a mixed yet optimistic financial landscape. The company showcased strong financial performance with record revenue and market share growth for its flagship product, HEPLISAV-B. Despite facing financial hurdles such as a significant allowance for doubtful accounts and a substantial GAAP net loss due to debt refinancing, the overall sentiment remains positive. Dynavax is optimistic about achieving the upper half of its revenue guidance and anticipates strong EBITDA growth.

Record First Quarter Net Revenue for HEPLISAV-B

Dynavax reported its highest ever first quarter net revenue for HEPLISAV-B, reaching $65 million, marking a 36% increase compared to the previous year. This impressive performance positions the company well to achieve the top half of their full-year guidance range for net product sales, projected between $305 million and $325 million.

Expansion of Development Pipeline

The company is making significant strides in expanding its development pipeline, with notable clinical trial milestones for its shingles and plague vaccine programs. Additionally, Dynavax announced new initiatives for pandemic influenza and Lyme disease vaccines, leveraging their proprietary CpG-1018 adjuvant technology.

Strong Market Position for HEPLISAV-B

HEPLISAV-B’s market share in the U.S. increased to 43% in the first quarter, up from 41% the previous year. This growth is attributed to broad-based gains and consistent annual market share increases across major retail customers, reinforcing Dynavax’s strong market position.

Positive Financial Outlook

Dynavax projects an adjusted EBITDA of at least $75 million for the full year 2025, demonstrating their capability to grow adjusted EBITDA at more than twice the rate of product revenue. This outlook reflects the company’s robust financial health and strategic growth initiatives.

Allowance for Doubtful Accounts

The company recorded an $11 million allowance for doubtful accounts related to a legacy COVID-19 adjuvant commercial supply agreement with Clover Biopharmaceuticals, owing to their reported liquidity issues as of December 31, 2024.

GAAP Net Loss

Dynavax reported a GAAP net loss of $96 million for the first quarter of 2025, primarily due to the accounting treatment of their debt refinancing. This is a significant increase compared to a GAAP net loss of $9 million in the first quarter of 2024.

Forward-Looking Guidance

In its forward-looking guidance, Dynavax highlighted several key metrics. The company expects to reach the top half of its annual guidance range for net product sales, with HEPLISAV-B’s market share anticipated to exceed 60% by 2030. They are also advancing their shingles program, with a top line readout expected in Q3 2025. Furthermore, Dynavax is executing a $200 million share repurchase program and aims to maintain disciplined cost management, with SG&A expenses expected to remain flat for the year.

In summary, Dynavax Technologies’ earnings call painted a picture of a company on a strong growth trajectory, despite some financial challenges. The record revenue and market share growth for HEPLISAV-B, coupled with strategic pipeline expansions and a positive financial outlook, underscore the company’s resilience and potential for future success.