Dynavax Defends Board Strategy Amid Recommendations from Glass Lewis

Dynavax Technologies Corporation has recently voiced its disagreement with the recommendations made by Glass Lewis regarding its board of directors. In a report related to the election of Dynavax's four director nominees, the company underscores the effectiveness of its current strategy and the value that its board brings to shareholders.

Founded as a commercial-stage biopharmaceutical company, Dynavax focuses on developing and commercializing innovative vaccines, including its leading product, HEPLISAV-B®. The company is on a promising trajectory, having reported impressive financial results in recent years. The board believes that their strategic pivot towards vaccine development since 2019 has played a significant role in delivering substantial shareholder returns, a point acknowledged by Glass Lewis in their report. However, Glass Lewis has recommended against the election of two of Dynavax’s highly qualified nominees.

Dynavax argues that significant changes have already been made to its board composition and strategy, asserting that the current directors possess the skills needed to effectively manage and execute its strategic plan. They emphasize that the company has undergone meaningful board refreshment, featuring directors with extensive values in the healthcare sector. Each member has significant C-suite experience, which is vital for the current trajectory of the company.

Key achievements since the 2019 pivot include establishing HEPLISAV-B® as the market leader in the hepatitis B vaccine sector, achieving $268 million in net product revenue for 2024, with a growth rate of 36% year-over-year, significantly outpacing traditional market competitors. Such results demonstrate Dynavax's capacity to leverage its strategic focus into financial success, which the board suggests is indicative of a clear and effective direction.

Furthermore, Dynavax has introduced a clear capital allocation strategy that includes a robust share repurchase program. As of May 5, 2025, it executed over 85% of its $200 million program. This level of proactive capital return reflects their commitment to enhancing shareholder value, further separating them from peers in the biotechnology space who reported much lower returns over the same period.

Dynavax challenges the credentials of the nominees put forth by Deep Track, arguing they lack the necessary public company board experience to effectively contribute to the long-term goals of Dynavax. In contrast, the candidates nominated by Dynavax possess invaluable expertise crucial for navigating the complexities of the biotechnology field.

Special attention is drawn to the company’s forthcoming Annual Meeting of Stockholders scheduled for June 11, 2025. Here, Dynavax stresses the importance of shareholder participation, requesting support for all four of its nominees, which they argue are essential for providing the company with the strategic oversight needed to sustain its growth trajectory.

In conclusion, Dynavax Technologies maintains that their effective board structure and the strategic path established will continue to create substantial long-term value for shareholders. Their strong recommendation remains: shareholders should vote