Pharma/ Biotechnology Investments Specialist, Vasuda Capital Management

Dr. Bhavneesh Sharma, MD, MBA

Pharma/ Biotechnology Investments Specialist

Vasuda Capital Management

Equity Bottom-Up

<ul><li>Dynavax Technologies (DVAX) common stock plunged today after receiving a complete response letter (CRL) from FDA regarding its approval application for HEPLISAV-B vaccine. </li><li>We believe that the vaccine could still be approved by FDA despite at least 6-9 months of delay. The approval application is also under consideration in the E.U.</li><li>Dynavax's other products like SD-101 (immuno-oncology) continue to show promise. Astra Zeneca plans to start a phase 2 trial of DV1179 in asthma later this year.</li><li>A more restricted label, for example, in diabetes may be approved by FDA. We calculated the fair value for common stock=$16 with 50% market penetration in diabetes patients in the U.S.</li></ul>

Dynavax Technologies (DVAX) common stock plunged today after receiving a complete response letter (CRL) from FDA regarding its approval application for HEPLISAV-B vaccine. We believe that the vaccine could still be approved by FDA despite at least 6-9 months of delay. The approval application is also under consideration in the E.U.Dynavax's other products like SD-101 (immuno-oncology) continue to show promise. Astra Zeneca plans to start a phase 2 trial of DV1179 in asthma later this year.A more restricted label, for example, in diabetes may be approved by FDA. We calculated the fair value for common stock=$16 with 50% market penetration in diabetes patients in the U.S.

Contrarian Idea of the Day: Long Dynavax Technologies (DVAX US)