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Business Wire
09-06-2025
- Business
- Business Wire
Deep Track Capital Sends Letter to Dynavax Technologies Shareholders Offering Final Perspectives on Why Change is Needed in the Boardroom
GREENWICH, Conn.--(BUSINESS WIRE)--Deep Track Capital, LP, (together with its affiliates, 'Deep Track' or 'we'), one of the largest shareholders of Dynavax Technologies Corporation (NASDAQ: DVAX) ('Dynavax', 'DVAX' or the 'Company'), with ownership of approximately 14.82% of the Company's outstanding shares, today issued a letter to shareholders detailing the benefits of electing Deep Track's four nominees – Brett Erkman, Jeffrey Farrow, Michael Mullette and Donald Santel – to the Board of Directors (the 'Board') at the upcoming 2025 Annual Meeting of Shareholders (the 'Annual Meeting') on June 11, 2025. For more information, including details on how to vote Deep Track's WHITE proxy card, please visit The full text of the letter follows: Dear Fellow Dynavax shareholders, We would like to express our appreciation for the opportunity we have had over the course of this campaign to engage with so many of you. Deep Track undertook this effort because, as one of Dynavax's largest and longest-tenured shareholders, we believe deeply in the Company and its value creation potential. With the Annual Meeting now only a few days away, we want to convey a few final thoughts about why we believe new, independent and fully objective perspectives should be added to the Board. First, the numbers speak for themselves. The key asset at Dynavax is Heplisav, but under the Board's increasing pressure for inorganic growth, Heplisav is not reaching its full potential. As outlined in the Company's proxy statement 1, Heplisav failed to achieve both key metrics established by the Board: Management cautions that market share numbers should only be evaluated on a year-over-year basis and dismisses the slip to 43% market share in the first quarter of 2025. But even through that lens the numbers are troubling: fourth quarter market share in 2023 was 42% 2, which means there were only two percentage points of growth in 2024 – a substantial decline from the seven points achieved in the year prior. At this rate, Heplisav will fall far short of the Company's 60% target for 2030 – yet management contended on the earnings call last month that this is 'exactly how we had planned.' 3 Shares fell 11% the next day. 4 We believe that growing questions about Heplisav growth with a distracted management team combined with an outsized cash pile with no coherent strategy for deployment have taken their toll on the share price. While the Company points to a 'pivot' in 2019 when it made the unsurprising choice to focus on its only approved product, this reference point ignores the multi-year losses since then – both on an absolute basis and against the Company's benchmark historically used in its own proxy filings 5, the Nasdaq Biotechnology Index (NBI): Slowing market share growth, missed revenue targets, and a stock price meaningfully underperforming the Company's index for years all point to fundamental problems at Dynavax – problems that are a direct result of the questionable Board strategy of diversifying the Company away from its lead asset. Second, without new voices in the boardroom, nothing will change. As leading proxy advisory firm Glass, Lewis & Co. ('Glass Lewis') noted in its report, 6 our campaign '…highlighted valid and critical questions regarding Dynavax's strategic direction, capital allocation, and board responsiveness.' By voting for the incumbent directors up for election, you would be voting to leave these questions unaddressed and effectively assenting to the current strategy set by Chairman Scott Myers without any further debate, assessment, or new thinking. As Glass Lewis wrote when recommending against Mr. Myers, shareholders would be 'best served' by electing Deep Track directors who would bring 'relevant and differentiated perspectives to the Board.' Shareholders must also keep in mind that a 'wait and see' approach simply will not work. Due to the Board's imbalanced class of directors and the classified structure not ending until 2028, there is only one independent director up for election next year – making this year's Annual Meeting a uniquely important opportunity to effect real change. 7 Finally, the truth about Deep Track and our nominees. The current Board has made repeated and increasingly baseless mischaracterizations regarding Deep Track, our nominees and our campaign. Consider these facts: Our director nominees are open-minded and ready to work constructively to do what is best for all Dynavax shareholders. Suggesting that highly respected and experienced professionals like our nominees would violate their fiduciary duties is nothing more than campaign theatre. The Company has particularly targeted Deep Track principal Brett Erkman, accusing him of being 'rigid' in his views. In fact, all evidence points to the contrary: in the years of engagement Brett has had with Dynavax and the communications over the course of this campaign (including the very last settlement offer he proposed to Ryan Spencer on April 17, 2025, which the Board flatly rejected over a week later with no substantive dialogue in the interim), Brett consistently and explicitly made clear that he was always 'open to discussion' and 'happy to engage' on any point of potentially differing opinions, including specifics on capital allocation, board composition and the components of the two-year standstill. Deep Track is one of Dynavax's largest and longest-tenured investors – the antithesis of 'short-term.' Our principals first invested in Dynavax a decade before any incumbent director up for election this year had joined the Board. The idea that we are looking for a quick profit at the expense of the Company's best interests is simply false. We also do not understand how the Board can believe a single shareholder representative could engineer such an outcome; again, this is more theatre that defies logic and yet another attempt to distract from the facts. Deep Track is not a typical 'activist' – this is the first time we have publicly engaged at all with a portfolio company, much less run a proxy contest. Our nominees would bring needed valuable experience, independence and investor perspective to the Dynavax Board. Throughout this campaign, we have struggled to understand why Dynavax has fought so hard (while spending shareholder capital) to prevent a nearly 15% shareholder from having a representative on the Board. Regardless of these motivations, the reality is that our directors are needed. As Glass Lewis concluded in its report, '...we find that the board is notably lacking in directors with direct capital markets or institutional investor backgrounds,' and specifically regarding Brett, 'Mr. Erkman's extensive background as a public equity investor in the life sciences sector addresses what we believe is a notable deficiency in the current board's composition and could help sharpen the board's approach to capital allocation, shareholder engagement, and long-term value creation.' We appreciate you taking the time to consider our views. We truly believe that by voting for all four Deep Track nominees, you can help to unlock the value that Dynavax can deliver and put the Company on a better path to success. For more information, including details on how to vote Deep Track's WHITE proxy card, please visit Regards, David Kroin Founder and Chief Investment Officer, Deep Track Capital LP EVERY VOTE MATTERS Your vote is important, no matter how many shares of Common Stock you own. If you have any questions, require assistance in voting your WHITE proxy card, or need additional copies of Deep Track's proxy materials, please visit or contact our proxy solicitor, Innisfree M&A Incorporated ('Innisfree'), using the contact information provided here: Innisfree M&A Incorporated 501 Madison Avenue, 20th Floor New York, New York 10022 Stockholders call toll-free (877) 687-1865 About Deep Track Capital Deep Track Capital is a Greenwich, Connecticut-based investment firm focused exclusively on the life sciences industry. We develop long term partnerships with management teams of leading innovative public and pre-IPO biotechnology companies. In addition to capital, we seek to invest our time and expertise, while leveraging our network for the benefit of our partners. We aim to lead transactions while building large syndicates, and also to invest in rounds led by other qualified investors. CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS The information herein contains 'forward-looking statements.' Specific forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts and include, without limitation, words such as 'may,' 'will,' 'expects,' 'believes,' 'anticipates,' 'plans,' 'estimates,' 'projects,' 'potential,' 'targets,' 'forecasts,' 'seeks,' 'could,' 'should' or the negative of such terms or other variations on such terms or comparable terminology. Similarly, statements that describe our objectives, plans or goals are forward-looking. Forward-looking statements are subject to various risks and uncertainties and assumptions. There can be no assurance that any idea or assumption herein is, or will be proven, correct. If one or more of the risks or uncertainties materialize, or if any of the underlying assumptions of Deep Track Capital, LP ('Deep Track') or any of the other participants in the proxy solicitation described herein prove to be incorrect, the actual results may vary materially from outcomes indicated by these statements. Accordingly, forward looking statements should not be regarded as a representation by Deep Track that the future plans, estimates or expectations contemplated will ever be achieved. Certain statements and information included herein may have been sourced from third parties. Deep Track does not make any representations regarding the accuracy, completeness or timeliness of such third party statements or information. Except as may be expressly set forth herein, permission to cite such statements or information has neither been sought nor obtained from such third parties. Any such statements or information should not be viewed as an indication of support from such third parties for the views expressed herein. Deep Track disclaims any obligation to update the information herein or to disclose the results of any revisions that may be made to any projected results or forward-looking statements herein to reflect events or circumstances after the date of such information, projected results or statements or to reflect the occurrence of anticipated or unanticipated events. CERTAIN INFORMATION CONCERNING THE PARTICIPANTS Deep Track and the other Participants (as defined below) have filed a definitive proxy statement and accompanying WHITE universal proxy card with the Securities and Exchange Commission (the 'SEC') to be used to solicit proxies for, among other matters, the election of its slate of director nominees at the 2025 annual stockholders meeting (the '2025 Annual Meeting') of Dynavax Technologies Corporation, a Delaware corporation ('DVAX'). Shortly after filing its definitive proxy statement with the SEC, Deep Track furnished the definitive proxy statement and accompanying WHITE universal proxy card to some or all of the stockholders entitled to vote at the 2025 Annual Meeting. The participants in the proxy solicitation are Deep Track, Deep Track Biotechnology Master Fund, Ltd. (the 'Record Stockholder'), David Kroin (all of the foregoing persons, collectively, the 'Deep Track Parties'), Brett A. Erkman, Jeffrey S. Farrow, Michael Mullette and Donald J. Santel (such individuals, collectively with the Deep Track Parties, the 'Participants'). As of the date hereof, the Deep Track Parties beneficially own an aggregate of 17,791,486 shares (the 'Deep Track Shares') of the common stock, par value $0.001 per share, of DVAX (the 'Common Stock'). The Deep Track Shares collectively represent approximately 14.53% of the outstanding shares of Common Stock based on 122,411,685 shares of Common Stock outstanding as of the record date for the 2025 Annual Meeting as reported in DVAX's Definitive Proxy Statement filed with the SEC on April 17, 2025. Each of the Deep Track Parties may be deemed to have the shared power to vote or direct the vote of (and the shared power to dispose or direct the disposition of) all of the Deep Track Shares. As of the date hereof, none of the other Participants beneficially own any shares of Common Stock. DEEP TRACK STRONGLY ADVISES ALL STOCKHOLDERS OF DVAX TO READ THE DEFINITIVE PROXY STATEMENT, ANY AMENDMENTS OR SUPPLEMENTS TO SUCH PROXY STATEMENT, AND OTHER PROXY MATERIALS FILED BY DEEP TRACK WITH THE SEC BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION. SUCH PROXY MATERIALS WILL BE AVAILABLE AT NO CHARGE ON THE SEC'S WEBSITE AT THE DEFINITIVE PROXY STATEMENT, WHEN FILED, AND OTHER RELEVANT DOCUMENTS, WILL ALSO BE AVAILABLE BY DIRECTING A REQUEST TO THE PARTICIPANTS' PROXY SOLICITOR, INNISFREE M&A INCORPORATED, 501 MADISON AVENUE, 20th FLOOR, NEW YORK, NY 10022 (STOCKHOLDERS CAN CALL TOLL-FREE: (877)-687-1865).
Yahoo
09-06-2025
- Business
- Yahoo
Deep Track Capital Sends Letter to Dynavax Technologies Shareholders Offering Final Perspectives on Why Change is Needed in the Boardroom
Deep Track's Nominees Are Prepared to Collectively Enter the Boardroom with Open-Minded Perspectives, Constructive Approach and Sole Focus on Creating Value for All Shareholders Believes that Without Meaningful Board Change "Valid and Critical Questions Regarding Dynavax's Strategic Direction, Capital Allocation, and Board Responsiveness" Will Remain Unanswered Details Urgent Need to Address Company's Consistent Failure to Achieve Stated Targets and Reverse Heplisav Market Share Stagnation GREENWICH, Conn., June 09, 2025--(BUSINESS WIRE)--Deep Track Capital, LP, (together with its affiliates, "Deep Track" or "we"), one of the largest shareholders of Dynavax Technologies Corporation (NASDAQ: DVAX) ("Dynavax", "DVAX" or the "Company"), with ownership of approximately 14.82% of the Company's outstanding shares, today issued a letter to shareholders detailing the benefits of electing Deep Track's four nominees – Brett Erkman, Jeffrey Farrow, Michael Mullette and Donald Santel – to the Board of Directors (the "Board") at the upcoming 2025 Annual Meeting of Shareholders (the "Annual Meeting") on June 11, 2025. For more information, including details on how to vote Deep Track's WHITE proxy card, please visit The full text of the letter follows: Dear Fellow Dynavax shareholders, We would like to express our appreciation for the opportunity we have had over the course of this campaign to engage with so many of you. Deep Track undertook this effort because, as one of Dynavax's largest and longest-tenured shareholders, we believe deeply in the Company and its value creation potential. With the Annual Meeting now only a few days away, we want to convey a few final thoughts about why we believe new, independent and fully objective perspectives should be added to the Board. First, the numbers speak for themselves. The key asset at Dynavax is Heplisav, but under the Board's increasing pressure for inorganic growth, Heplisav is not reaching its full potential. As outlined in the Company's proxy statement1, Heplisav failed to achieve both key metrics established by the Board: 2024 Board Target 2024 Result Outcome Heplisav U.S. sales $275 million $268 million Missed by $7 million U.S. market share in 4Q 47% 44% Missed by 3 p.p. Management cautions that market share numbers should only be evaluated on a year-over-year basis and dismisses the slip to 43% market share in the first quarter of 2025. But even through that lens the numbers are troubling: fourth quarter market share in 2023 was 42%2, which means there were only two percentage points of growth in 2024 – a substantial decline from the seven points achieved in the year prior. At this rate, Heplisav will fall far short of the Company's 60% target for 2030 – yet management contended on the earnings call last month that this is "exactly how we had planned."3 Shares fell 11% the next day.4 We believe that growing questions about Heplisav growth with a distracted management team combined with an outsized cash pile with no coherent strategy for deployment have taken their toll on the share price. While the Company points to a "pivot" in 2019 when it made the unsurprising choice to focus on its only approved product, this reference point ignores the multi-year losses since then – both on an absolute basis and against the Company's benchmark historically used in its own proxy filings5, the Nasdaq Biotechnology Index (NBI): DVAX NBI DVAX vs. NBI One year -17% -6% -10% Two years -12% +2% -14% Three years -15% +17% -32% Slowing market share growth, missed revenue targets, and a stock price meaningfully underperforming the Company's index for years all point to fundamental problems at Dynavax – problems that are a direct result of the questionable Board strategy of diversifying the Company away from its lead asset. Second, without new voices in the boardroom, nothing will change. As leading proxy advisory firm Glass, Lewis & Co. ("Glass Lewis") noted in its report,6 our campaign "…highlighted valid and critical questions regarding Dynavax's strategic direction, capital allocation, and board responsiveness." By voting for the incumbent directors up for election, you would be voting to leave these questions unaddressed and effectively assenting to the current strategy set by Chairman Scott Myers without any further debate, assessment, or new thinking. As Glass Lewis wrote when recommending against Mr. Myers, shareholders would be "best served" by electing Deep Track directors who would bring "relevant and differentiated perspectives to the Board." Shareholders must also keep in mind that a "wait and see" approach simply will not work. Due to the Board's imbalanced class of directors and the classified structure not ending until 2028, there is only one independent director up for election next year – making this year's Annual Meeting a uniquely important opportunity to effect real change.7 Finally, the truth about Deep Track and our nominees. The current Board has made repeated and increasingly baseless mischaracterizations regarding Deep Track, our nominees and our campaign. Consider these facts: Our director nominees are open-minded and ready to work constructively to do what is best for all Dynavax shareholders. Suggesting that highly respected and experienced professionals like our nominees would violate their fiduciary duties is nothing more than campaign theatre. The Company has particularly targeted Deep Track principal Brett Erkman, accusing him of being "rigid" in his views. In fact, all evidence points to the contrary: in the years of engagement Brett has had with Dynavax and the communications over the course of this campaign (including the very last settlement offer he proposed to Ryan Spencer on April 17, 2025, which the Board flatly rejected over a week later with no substantive dialogue in the interim), Brett consistently and explicitly made clear that he was always "open to discussion" and "happy to engage" on any point of potentially differing opinions, including specifics on capital allocation, board composition and the components of the two-year standstill. Deep Track is one of Dynavax's largest and longest-tenured investors – the antithesis of "short-term." Our principals first invested in Dynavax a decade before any incumbent director up for election this year had joined the Board. The idea that we are looking for a quick profit at the expense of the Company's best interests is simply false. We also do not understand how the Board can believe a single shareholder representative could engineer such an outcome; again, this is more theatre that defies logic and yet another attempt to distract from the facts. Deep Track is not a typical "activist" – this is the first time we have publicly engaged at all with a portfolio company, much less run a proxy contest. Our nominees would bring needed valuable experience, independence and investor perspective to the Dynavax Board. Throughout this campaign, we have struggled to understand why Dynavax has fought so hard (while spending shareholder capital) to prevent a nearly 15% shareholder from having a representative on the Board. Regardless of these motivations, the reality is that our directors are needed. As Glass Lewis concluded in its report, "...we find that the board is notably lacking in directors with direct capital markets or institutional investor backgrounds," and specifically regarding Brett, "Mr. Erkman's extensive background as a public equity investor in the life sciences sector addresses what we believe is a notable deficiency in the current board's composition and could help sharpen the board's approach to capital allocation, shareholder engagement, and long-term value creation." We appreciate you taking the time to consider our views. We truly believe that by voting for all four Deep Track nominees, you can help to unlock the value that Dynavax can deliver and put the Company on a better path to success. For more information, including details on how to vote Deep Track's WHITE proxy card, please visit Regards, David KroinFounder and Chief Investment Officer, Deep Track Capital LP EVERY VOTE MATTERS Your vote is important, no matter how many shares of Common Stock you own. If you have any questions, require assistance in voting your WHITE proxy card, or need additional copies of Deep Track's proxy materials, please visit or contact our proxy solicitor, Innisfree M&A Incorporated ("Innisfree"), using the contact information provided here: Innisfree M&A Incorporated501 Madison Avenue, 20th FloorNew York, New York 10022Stockholders call toll-free (877) 687-1865 About Deep Track Capital Deep Track Capital is a Greenwich, Connecticut-based investment firm focused exclusively on the life sciences industry. We develop long term partnerships with management teams of leading innovative public and pre-IPO biotechnology companies. In addition to capital, we seek to invest our time and expertise, while leveraging our network for the benefit of our partners. We aim to lead transactions while building large syndicates, and also to invest in rounds led by other qualified investors. CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS The information herein contains "forward-looking statements." Specific forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts and include, without limitation, words such as "may," "will," "expects," "believes," "anticipates," "plans," "estimates," "projects," "potential," "targets," "forecasts," "seeks," "could," "should" or the negative of such terms or other variations on such terms or comparable terminology. Similarly, statements that describe our objectives, plans or goals are forward-looking. Forward-looking statements are subject to various risks and uncertainties and assumptions. There can be no assurance that any idea or assumption herein is, or will be proven, correct. If one or more of the risks or uncertainties materialize, or if any of the underlying assumptions of Deep Track Capital, LP ("Deep Track") or any of the other participants in the proxy solicitation described herein prove to be incorrect, the actual results may vary materially from outcomes indicated by these statements. Accordingly, forward looking statements should not be regarded as a representation by Deep Track that the future plans, estimates or expectations contemplated will ever be achieved. Certain statements and information included herein may have been sourced from third parties. Deep Track does not make any representations regarding the accuracy, completeness or timeliness of such third party statements or information. Except as may be expressly set forth herein, permission to cite such statements or information has neither been sought nor obtained from such third parties. Any such statements or information should not be viewed as an indication of support from such third parties for the views expressed herein. Deep Track disclaims any obligation to update the information herein or to disclose the results of any revisions that may be made to any projected results or forward-looking statements herein to reflect events or circumstances after the date of such information, projected results or statements or to reflect the occurrence of anticipated or unanticipated events. CERTAIN INFORMATION CONCERNING THE PARTICIPANTS Deep Track and the other Participants (as defined below) have filed a definitive proxy statement and accompanying WHITE universal proxy card with the Securities and Exchange Commission (the "SEC") to be used to solicit proxies for, among other matters, the election of its slate of director nominees at the 2025 annual stockholders meeting (the "2025 Annual Meeting") of Dynavax Technologies Corporation, a Delaware corporation ("DVAX"). Shortly after filing its definitive proxy statement with the SEC, Deep Track furnished the definitive proxy statement and accompanying WHITE universal proxy card to some or all of the stockholders entitled to vote at the 2025 Annual Meeting. The participants in the proxy solicitation are Deep Track, Deep Track Biotechnology Master Fund, Ltd. (the "Record Stockholder"), David Kroin (all of the foregoing persons, collectively, the "Deep Track Parties"), Brett A. Erkman, Jeffrey S. Farrow, Michael Mullette and Donald J. Santel (such individuals, collectively with the Deep Track Parties, the "Participants"). As of the date hereof, the Deep Track Parties beneficially own an aggregate of 17,791,486 shares (the "Deep Track Shares") of the common stock, par value $0.001 per share, of DVAX (the "Common Stock"). The Deep Track Shares collectively represent approximately 14.53% of the outstanding shares of Common Stock based on 122,411,685 shares of Common Stock outstanding as of the record date for the 2025 Annual Meeting as reported in DVAX's Definitive Proxy Statement filed with the SEC on April 17, 2025. Each of the Deep Track Parties may be deemed to have the shared power to vote or direct the vote of (and the shared power to dispose or direct the disposition of) all of the Deep Track Shares. As of the date hereof, none of the other Participants beneficially own any shares of Common Stock. IMPORTANT INFORMATION AND WHERE TO FIND IT DEEP TRACK STRONGLY ADVISES ALL STOCKHOLDERS OF DVAX TO READ THE DEFINITIVE PROXY STATEMENT, ANY AMENDMENTS OR SUPPLEMENTS TO SUCH PROXY STATEMENT, AND OTHER PROXY MATERIALS FILED BY DEEP TRACK WITH THE SEC BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION. SUCH PROXY MATERIALS WILL BE AVAILABLE AT NO CHARGE ON THE SEC'S WEBSITE AT THE DEFINITIVE PROXY STATEMENT, WHEN FILED, AND OTHER RELEVANT DOCUMENTS, WILL ALSO BE AVAILABLE BY DIRECTING A REQUEST TO THE PARTICIPANTS' PROXY SOLICITOR, INNISFREE M&A INCORPORATED, 501 MADISON AVENUE, 20th FLOOR, NEW YORK, NY 10022 (STOCKHOLDERS CAN CALL TOLL-FREE: (877)-687-1865). __________________________ 1 Dynavax definitive proxy statement filed April 17, 2025. 2 Dynavax 4Q23 earnings call, recorded Feb 22, 2024. 3 Dynavax 1Q25 earnings call recorded May 6, 2025. 4 Share price calculated market close May 6, 2025 through market close May 7, 2025. 5 Dynavax definitive proxy statement filed April 11, 2024. 6 Permission to quote Glass Lewis was neither sought nor received. 7 Dynavax 2025 proxy statement filed April 17, 2025, identifies Daniel L. Kisner (independent) and Ryan Spencer (CEO) as the only Class II directors continuing in office until the 2026 annual meeting. View source version on Contacts Investor Contact Innisfree M&A IncorporatedScott Winter / Gabrielle Wolf+1 212-750-5833 Media Contact Longacre Square Partnersdeeptrack@
Yahoo
04-06-2025
- Business
- Yahoo
Glass Lewis backs two of Deep Track's four nominees in Dynavax fight
By Svea Herbst-Bayliss NEW YORK (Reuters) -Proxy advisory firm Glass Lewis urged Dynavax Technologies shareholders to elect two of investment firm Deep Track Capital's four director nominees, arguing change is needed because the company has not been responsive enough to shareholders. Glass Lewis recommended in a report that shareholders vote for Brett Erkman, a Deep Track managing director, and biotech industry executive Donald Santel to replace sitting directors Brent MacGregor and Scott Myers, the current board chair. Emeryville, California-based Dynavax, which makes a vaccine designed to prevent the hepatitis B infection that can lead to chronic liver disease and death, has an 11-member board but only four are standing for election this year. Shareholders will cast ballots at the June 11 annual meeting unless the two sides reach a settlement beforehand. Proxy advisory firm recommendations often guide how money managers vote on hot button issues like corporate elections and mergers. "Shareholders should support the change of two incumbent board seats given the company's prolonged capital conservatism and the board's limited responsiveness to shareholder feedback," the report said. The two Deep Track nominees would bring "relevant and differentiated experience to the board," it added. Erkman has worked as a private equity investor in life sciences and Santel is a life sciences executive who has done deals. Deep Track, Dynavax's second largest shareholder with a nearly 15% stake, wants new directors to prioritize development of the company's hepatitis B vaccine Heplisav instead of pursuing new acquisitions. Dynavax is valued at $1.2 billion and its share price has dropped 22% this year. In May, Institutional Shareholder Services, Glass Lewis' bigger rival, recommended that all company directors be reelected, arguing Deep Track failed to make its case for change. A Deep Track representative welcomed the report. Dynavax disagreed with the recommendation, saying Glass Lewis noted its board "has been meaningfully refreshed with high quality and sector-specific expertise," a company representative said. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
23-05-2025
- Business
- Yahoo
ISS backs Dynavax directors in board fight with Deep Track Capital
By Svea Herbst-Bayliss NEW YORK (Reuters) -Proxy advisory firm Institutional Shareholder Services urged Dynavax Technologies shareholders on Friday to reelect all its company directors instead of backing life sciences investment firm Deep Track Capital's four nominees. "Vote for all four management nominees," ISS wrote in a note to clients that was seen by Reuters. "The dissident has failed to present a compelling case that change is necessary at this meeting." Investors will vote on June 11. Recommendations from ISS and its rivals Glass Lewis and Egan-Jones often help guide shareholders' decisions. Deep Track Capital is pushing on with a proxy fight and wants new directors to prioritize development of the company's hepatitis B vaccine instead of pursuing new acquisitions. The investment firm is Dynavax's second largest shareholder with a nearly 15% stake. It wants Dynavax to focus exclusively on growing Heplisav, a vaccine designed to prevent the hepatitis B infection that can lead to chronic liver disease and death, into an asset that a large pharma company would want to own. While ISS recommended against Deep Track's nominees, it acknowledged certain challenges. "There has been a stall in momentum," it said in a report, but noted that "the market has in no way rebuked the company's strategy." Dynavax's stock price has fallen 18% over the last 12 months. Representatives for Dynavax and Deep Track did not immediately respond to requests for comment. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Business Wire
15-05-2025
- Business
- Business Wire
Deep Track Capital Issues Letter to Fellow Dynavax Technologies Shareholders Detailing Critical Issues in Advance of Annual Meeting
GREENWICH, Conn.--(BUSINESS WIRE)--Deep Track Capital, LP, (together with its affiliates, 'Deep Track' or 'we'), one of the largest shareholders of Dynavax Technologies Corporation (NASDAQ: DVAX) ('Dynavax', 'DVAX' or the 'Company'), with ownership of approximately 14.82% of the Company's outstanding shares, today issued a letter to shareholders in connection with its nomination of four highly qualified candidates for election to the Company's Board of Directors (the 'Board') at the 2025 Annual Meeting of Stockholders (the 'Annual Meeting'). The full text of the letter follows: Dear Fellow Dynavax Shareholders, Deep Track is one of the largest shareholders of Dynavax, with ownership of approximately 14.82% of the Company's outstanding shares. We manage approximately $4 billion on behalf of our investors – which include many healthcare organizations and non-profits – and focus exclusively on the life sciences space and the development of novel therapies. We believe deeply in Dynavax's long-term value opportunity, and our only goal is to see it succeed for the benefit of all shareholders. Disappointingly, the Company has made numerous false and misleading statements about our intent and effort to add four independent, unquestionably qualified directors to the Board. We stand by all our analyses and assertions to date and believe it is more critical than ever to focus on the core issues facing Dynavax investors today: Last week's earnings report starkly illustrates Heplisav's slowing market share growth. First-quarter 2025 market share of 43% was up only two percentage points from 1Q24 and down from 4Q24, yet management said they were 'very comfortable' with and 'very proud' of this result and noted the strategy is going 'exactly how we had planned.' 1 The market's reaction suggested otherwise, as Dynavax stock traded down 11% the next day. 2 As highlighted in our investor presentation, Heplisav market share was not on track to hit management's goal of at least 60% by 2030, and has fallen even further off track with last week's update. The first quarter results underscore our concerns that increasing distractions from the still-unproductive multi-year search for inorganic growth opportunities and a growing portfolio of high-risk vaccine projects are drawing valuable management attention away from Heplisav, the Company's crown jewel. Dynavax failed to achieve the Board's own market share and sales targets for Heplisav in 2024 – but the Company did not pivot in its strategy. As disclosed in the Company's proxy statement, the Board set targets for Heplisav to achieve 47% market share by the fourth quarter of 2024 and U.S. sales of $275 million for 2024. 3 Neither of these goals – which were the most heavily weighted and not 'stretch' goals – were met. While that alone is of concern, even more troubling is that nothing seems to have changed as a result. There is no evidence of any shift in strategy or reallocation of resources to address this critical problem. The Board refreshment announced in January 4 would have been an opportune time to add vaccine commercialization expertise, but disappointingly, neither of the two directors chosen by the Board has any relevant background in this critical area. The Company's share price does not reflect optimism about the future. The reality is Dynavax's underperformance has been a persistent problem, despite the Company's attempts to obfuscate this fact. Its shares are down 26% year-to-date, substantially underperforming both of the Company's benchmarks, including the longstanding Nasdaq Biotechnology Index that Dynavax has used for years as well as the S&P Biotechnology Select Industry Index that it introduced just two weeks ago. 5 The enterprise value to Heplisav TTM ratio has now fallen to less than 2.7x, 6 and we believe the fresh 52-week low set just this week signals a crisis of confidence regarding the Company's go-forward strategy. We want Dynavax to deliver on its significant potential, but that will not happen as long as the Board remains committed to its current strategy and ignores that it is destroying value. We are seeking to protect the best interests of all shareholders – not control the Company. Our goal is to preserve the long-term value of Dynavax's assets – and to ensure that the Board's composition is aligned with this aim. That is why we urged the Company to improve its governance by balancing its lopsided director classes – given only two directors are up for election in 2026, 7 one of whom is the CEO – and to de-classify the Board in an expedient manner. The Board's rejection of these proposals exposes its focus on entrenchment. Any argument that Deep Track was insistent on 'control' is clearly refuted by the fact that we proposed a settlement with a two-year standstill. Additionally, we believe the Board's own adamant refusal to accept shareholder representation in the boardroom makes it plainly obvious who is truly after 'control' at Dynavax. Shareholders deserve a voice in the Dynavax boardroom. Not one of the Board members up for election this year has purchased a single share of DVAX stock on the open market. Given that a meaningful proportion of their compensation is in the form of stock options, these directors appear to have misjudged the market's level of risk tolerance when evaluating strategic and capital allocation decisions. Last week's announcement on the initiation of a pandemic flu vaccine program is only the latest troubling example of the Company's scattershot strategy. 8 It is wholly unclear why the Company believes dusting off the playbook that didn't work 20 years ago 9 is the best risk-adjusted opportunity they have today. Additionally, we find it concerning that the Board continues to protect its own interests by relying on false statements and distortions. For example, the Company recently claimed Deep Track insisted Dynavax 'return all cash to stockholders.' 10 On the contrary, we want the Company to invest in the best risk-adjusted opportunities available at any given point in time. The fact that Dynavax is resorting to such baseless accusations shines a spotlight on their lack of data-driven arguments. The bottom line is this: the current directors have taken their collective eye off the ball and Dynavax's stock has reacted accordingly. Objective, investor-aligned perspectives are needed to ensure that shareholders' interests are once again prioritized when evaluating capital allocation and strategic decisions. Deep Track's director candidates would bring valuable experience, independence and investor perspective to the Dynavax Board. Brett Erkman brings a long-term shareholder perspective on capital allocation, investor communications, capital markets and best practices of other publicly traded biotechnology companies. Jeffrey Farrow brings experience in biopharma finance, a functional expertise in evaluating optimal capital allocation, is a qualified audit expert, and has a deep understanding of the regulatory environment in the pharmaceutical industry and knowledge of the drug development process. Donald Santel brings prior CEO experience from two public companies, prior board leadership experience, and a demonstrated independent approach to advocating for shareholders' best interests. Michael Mullette brings highly relevant industry experience derived from overseeing commercialization of the Moderna COVID-19 vaccine (one of the most successful vaccine launches in history), as well as a deep understanding of the biotechnology business risks and extensive day-to-day operational experience from his nearly two decades at Sanofi. We are deeply concerned that the Dynavax Board is leading the Company down a path of value destruction. If elected, Deep Track's nominees are prepared to critically evaluate the Company's strategy and help ensure it is on the best trajectory for all stakeholders, while working collaboratively with the rest of the Board in pursuit of this goal. We encourage you to make your voice heard at the upcoming Annual Meeting by voting for meaningful, shareholder-driven change. For more information, including details on how to vote Deep Track's WHITE proxy card, please visit Regards, David Kroin Founder and Chief Investment Officer, Deep Track Capital LP EVERY VOTE MATTERS Your vote is important, no matter how many shares of Common Stock you own. If you have any questions, require assistance in voting your WHITE proxy card, or need additional copies of Deep Track's proxy materials, please visit or contact our proxy solicitor, Innisfree M&A Incorporated ('Innisfree'), using the contact information provided here: Innisfree M&A Incorporated 501 Madison Avenue, 20 th Floor New York, New York 10022 Stockholders call toll-free (877) 687-1865 About Deep Track Capital Deep Track Capital is a Greenwich, Connecticut-based investment firm focused exclusively on the life sciences industry. We develop long term partnerships with management teams of leading innovative public and pre-IPO biotechnology companies. In addition to capital, we seek to invest our time and expertise, while leveraging our network for the benefit of our partners. We aim to lead transactions while building large syndicates, and also to invest in rounds led by other qualified investors. CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS The information herein contains 'forward-looking statements.' Specific forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts and include, without limitation, words such as 'may,' 'will,' 'expects,' 'believes,' 'anticipates,' 'plans,' 'estimates,' 'projects,' 'potential,' 'targets,' 'forecasts,' 'seeks,' 'could,' 'should' or the negative of such terms or other variations on such terms or comparable terminology. Similarly, statements that describe our objectives, plans or goals are forward-looking. Forward-looking statements are subject to various risks and uncertainties and assumptions. There can be no assurance that any idea or assumption herein is, or will be proven, correct. If one or more of the risks or uncertainties materialize, or if any of the underlying assumptions of Deep Track Capital, LP ('Deep Track') or any of the other participants in the proxy solicitation described herein prove to be incorrect, the actual results may vary materially from outcomes indicated by these statements. Accordingly, forward looking statements should not be regarded as a representation by Deep Track that the future plans, estimates or expectations contemplated will ever be achieved. Certain statements and information included herein may have been sourced from third parties. Deep Track does not make any representations regarding the accuracy, completeness or timeliness of such third party statements or information. Except as may be expressly set forth herein, permission to cite such statements or information has neither been sought nor obtained from such third parties. Any such statements or information should not be viewed as an indication of support from such third parties for the views expressed herein. Deep Track disclaims any obligation to update the information herein or to disclose the results of any revisions that may be made to any projected results or forward-looking statements herein to reflect events or circumstances after the date of such information, projected results or statements or to reflect the occurrence of anticipated or unanticipated events. CERTAIN INFORMATION CONCERNING THE PARTICIPANTS Deep Track and the other Participants (as defined below) have filed a definitive proxy statement and accompanying WHITE universal proxy card with the Securities and Exchange Commission (the 'SEC') to be used to solicit proxies for, among other matters, the election of its slate of director nominees at the 2025 annual stockholders meeting (the '2025 Annual Meeting') of Dynavax Technologies Corporation, a Delaware corporation ('DVAX'). Shortly after filing its definitive proxy statement with the SEC, Deep Track furnished the definitive proxy statement and accompanying WHITE universal proxy card to some or all of the stockholders entitled to vote at the 2025 Annual Meeting. The participants in the proxy solicitation are Deep Track, Deep Track Biotechnology Master Fund, Ltd. (the 'Record Stockholder'), David Kroin (all of the foregoing persons, collectively, the 'Deep Track Parties'), Brett A. Erkman, Jeffrey S. Farrow, Michael Mullette and Donald J. Santel (such individuals, collectively with the Deep Track Parties, the 'Participants'). As of the date hereof, the Deep Track Parties beneficially own an aggregate of 17,791,486 shares (the 'Deep Track Shares') of the common stock, par value $0.001 per share, of DVAX (the 'Common Stock'). The Deep Track Shares collectively represent approximately 14.53% of the outstanding shares of Common Stock based on 122,411,685 shares of Common Stock outstanding as of the record date for the 2025 Annual Meeting as reported in DVAX's Definitive Proxy Statement filed with the SEC on April 17, 2025. Each of the Deep Track Parties may be deemed to have the shared power to vote or direct the vote of (and the shared power to dispose or direct the disposition of) all of the Deep Track Shares. As of the date hereof, none of the other Participants beneficially own any shares of Common Stock. IMPORTANT INFORMATION AND WHERE TO FIND IT DEEP TRACK STRONGLY ADVISES ALL STOCKHOLDERS OF DVAX TO READ THE DEFINITIVE PROXY STATEMENT, ANY AMENDMENTS OR SUPPLEMENTS TO SUCH PROXY STATEMENT, AND OTHER PROXY MATERIALS FILED BY DEEP TRACK WITH THE SEC BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION. SUCH PROXY MATERIALS WILL BE AVAILABLE AT NO CHARGE ON THE SEC'S WEBSITE AT THE DEFINITIVE PROXY STATEMENT, WHEN FILED, AND OTHER RELEVANT DOCUMENTS, WILL ALSO BE AVAILABLE BY DIRECTING A REQUEST TO THE PARTICIPANTS' PROXY SOLICITOR, INNISFREE M&A INCORPORATED, 501 MADISON AVENUE, 20th FLOOR, NEW YORK, NY 10022 (STOCKHOLDERS CAN CALL TOLL-FREE: (877)-687-1865). 1 Dynavax 1Q25 earnings call recorded May 6, 2025. 2 Share price calculated market close May 6, 2025 through market close May 7, 2025. 3 Dynavax definitive proxy statement filed April 17, 2025. 4 Dynavax press release published January 27, 2025 and 8-K filed January 29, 2025. 5 Source: Bloomberg. DVAX total share return from December 31, 2024 through market close May 14, 2025 was -26.4%, below -8.9% for the Nasdaq Biotechnology Index and -15.2% for the S&P Biotechnology Select Industry Index on the same dates. 6 Source: FactSet, enterprise value as of May 14, 2025 was $757.53 million. Trailing twelve-month revenues were $285.5 million, aggregated from Dynavax financial results reported on May 6, 2025; February 20, 2025; November 7, 2024; and August 6, 2024. 7 Dynavax 2025 proxy statement filed April 17, 2025, identifies Daniel L. Kisner and Ryan Spencer as the only Class II directors continuing in office until the 2026 annual meeting. 8 Dynavax 1Q25 press release filed May 6, 2025. 9 Dynavax press release filed May 9, 2005. 10 Dynavax Schedule 14A filed May 12, 2025. Expand
