Today, another Covid-19-related biopharma company is seeing impressive gains. This time, investors are focusing on Dynavax Technologies (NASDAQ:DVAX) amid some impressive news surrounding the company’s co-developed novel coronavirus vaccine. Currently, DVAX stock is up nearly 30% on this positive news.
Like other vaccine makers, Dynavax has been highly volatile of late. This stock has surged and dropped repeatedly in recent weeks. Accordingly, news flow appears to be the key driver of this stock’s performance over the near term.
Over the longer term, Dynavax’s trajectory has been relatively bearish. Investors looking to time such vaccine plays have had some success this year. And today, it appears investors are looking to do that again, betting more upside is on the horizon for DVAX stock.
Let’s dive into what the company announced and why investors are jumping on Dynavax today.
DVAX Stock Jumps Over Positive Vaccine Results
In partnership with Clover Biopharmaceuticals, Dynavax has been running global Phase 2/3 trials for its Covid-19 candidate, SCB-2019. Using Dynavax’s adjuvant CpG 1018, this vaccine has proven to be quite effective, particularly against variants.
The company noted in its press release that “vaccine efficacy was successfully demonstrated in an environment where 100% of SARS-CoV-2 strains observed in the efficacy analysis were variants.” That’s obviously a big deal, considering how impactful variants have been of late in spreading the virus, even among those immunized.
It’s clear that the focus is shifting away from traditional vaccine makers to those with vaccines proven to be highly effective against variants. With Dynavax, investors appear to be willing to accept the risk-reward right now and are diving in with both feet.
While this stock could indeed be volatile from here, there’s certainly reason to believe DVAX stock is one with incredible upside potential. Accordingly, this is a stock investors should be watching in the days and weeks to come.
On the date of publication, Chris MacDonald did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.