Dynavax Responds to Deep Track and Highlights Long-Term Value Creation Strategy

Core Viewpoint - Dynavax Technologies Corporation is committed to enhancing long-term stockholder value through strategic initiatives and board changes, while facing challenges from Deep Track Capital regarding board nominations and company strategy [1][5][9]. Financial Performance - Dynavax has executed a disciplined capital allocation strategy, including a $200 million share repurchase plan initiated in November 2024, with $100 million already executed through an accelerated program [2]. - The company reported record HEPLISAV-B annual revenue in 2024, achieving a 26% year-over-year growth, and aims for at least 60% total market share by 2030 [6]. Board Changes - The Board of Directors has begun a refreshment process since August 2024, resulting in the appointment of two independent directors and the planned resignation of two current directors at the 2025 Annual Meeting [3][4]. - Following the 2025 Annual Meeting, the Board will consist of nine directors, with six of the eight independent directors appointed since 2020 [4]. Engagement with Deep Track - Dynavax has engaged extensively with Deep Track, but the latter's proposed strategy has been deemed flawed and potentially harmful to the company's long-term growth [5][7]. - Deep Track's insistence on controlling the Board without a control premium has led to a breakdown in negotiations, despite Dynavax's attempts to reach a reasonable settlement [9][13]. Strategic Initiatives - Dynavax is advancing a differentiated vaccine pipeline, including a novel shingles vaccine program and a $30 million contract with the U.S. Department of Defense for its plague vaccine program [6]. - The company maintains a strong financial profile with a balance sheet of $714 million as of year-end 2024, positioning it well for future growth and strategic acquisitions [6].