Dynavax Technologies (DVAX) has announced that it will supply its CpG 1018 adjuvant for Valneva’s SARS-CoV-2 vaccine candidate, VLA2001.
Adjuvants are added to a vaccine to boost the immune response to produce more antibodies and longer-lasting immunity, minimizing the dose of antigen needed. Adjuvants may also be used to enhance the efficacy of a vaccine by helping to modify the immune response by particular types of immune system cells.
Dynavax will supply enough CpG 1018 to produce up to 100 million doses of vaccine in 2021, and Valneva has the option to purchase up to an additional 90 million doses through 2025.
Ryan Spencer, Dynavax CEO, cheered, “We believe CpG 1018 may play a critical role in the development of a safe and effective vaccine, including potentially enhancing the immune response for those who are traditionally less responsive to vaccination and are at greatest risk for severe disease from COVID-19.”
Valneva expects VLA2001 to enter clinical studies by the end of 2020 and to potentially reach regulatory approval in the second half of 2021. It also announced an agreement with the UK government to provide up to 190 million doses of VLA2001 over a five-year period.
VLA2001 is a Vero-cell based, highly purified inactivated vaccine candidate against the SARS-CoV-2 virus, using Valneva’s manufacturing technology for its Japanese encephalitis vaccine.
The combination with CpG 1018 is expected to induce a strong immune response and has the potential to generate high titers of neutralizing antibodies as well as a polarized Th1 response, say the companies.
Meanwhile CpG 1018 is the adjuvant used in HEPLISAV-B [Hepatitis B Vaccine (Recombinant), Adjuvanted], an adult hepatitis B vaccine approved by the U.S. Food and Drug Administration (FDA).
CpG 1018 provides a well- developed technology and a significant safety database, potentially accelerating the development and large-scale manufacturing of a COVID-19 vaccine, says Dynavax. (See DVAX stock analysis on TipRanks)
Shares in DVAX are down 12% year-to-date, but the stock scores a bullish Strong Buy consensus from the Street. That’s with four recent buy ratings, and no hold or sell ratings. Meanwhile the average analyst price target stands at $15, indicating significant upside potential from current levels.
Dynavax has partnerships with five different companies developing COVID-19 vaccines that utilize Dynavax’s CpG 1018 adjuvant, notes HC Wainwright analyst Edward White. He has a buy rating on the stock and $12 price target, and estimates CpG 1018 adjuvant sales for COVID-19 vaccines of $25M in 2022 growing to $100M in 2028.
Related News:
Pfizer CEO: Our Covid-19 Vaccine Could Be Ready In US By Year-End
Medtronic’s First-Of-Its Kind Diabetes System For Young Children Approved
Gilead Inks $21B IMMU Deal, Adding Trodelvy To Its Oncology Arsenal
