Stocks on the Move – Dynavax Technologies Corporation (NASDAQ:DVAX) EnteroMedics Inc (NASDAQ:ETRM)
Trading the news is a technique to trade equities, currencies and other financial instruments on the financial markets. Trading news releases can be a noteworthy tool for financial shareholders. Economic news reports often drive strong short-term moves in the markets, which may create trading opportunities for traders. Declarations about corporate profits, a change in administration, rumors of a merger, are events that can cause a company’s share price to move wildly up or down. Interest rates, unemployment and export rates, or the central bank’s policy shifts, can cause a deep change of an exchange rate.
Shares of Dynavax Technologies Corporation (NASDAQ:DVAX) gained 8.08% to $10.65 on Wednesday. Dynavax Technologies Corp’s experimental hepatitis B vaccine is effective, but there were more deaths and serious cardiac events in patients given the vaccine than in those given a rival product, according to a preliminary Food and Drug Administration report published on Wednesday.
However, they said overall numbers and rates of events were low. Moreover, there were limitations in the evaluation of cardiac events that “limits the causal interpretation of these observations.”
The review, posted on the FDA’s website, comes two days ahead of a meeting of outside advisors who will discuss the vaccine, Heplisav-B, and recommend whether it should be approved. The FDA is not bound to follow the advice of its advisory panels but typically does so.
The FDA has twice rejected the vaccine citing unresolved safety concerns. The second rejection, in November, sent Dynavax’s shares plunging roughly 70 percent to a year low of $3.20. They have since bounced back and closed on Tuesday at $9.85. However, the shares were down 4 percent on Wednesday in premarket trading.
If the FDA approves the vaccine, Dynavax’s shares could trade above $30 a share over time, Katherine Xu, an analyst at William Blair said in a recent research note, adding that Heplisav-B would then likely become the standard of care since it has an easier dosing plan than GlaxoSmithKline Plc’s Engerix-B.
“We project peak sales of $650 million, with a 70 percent probability of approval,” she said. A negative result could cause a 25 percent drop in the company’s shares, she added.
Heplisav-B is designed to enhance the body’s immune response to the hepatitis B virus, which can lead to cirrhosis of the liver, cancer and death. There is no cure. The virus is spread through sexual contact, sharing of needles, accidental needle sticks, and from mother to child during pregnancy.
The FDA is predictable to make its decision in the third quarter of this year. (Source: Reuters)
The stock is currently floating in a range of $8.15 – 10.75. The stock is moving on high volume, traded at a volume of 6.88M shares, as compared to its average daily volume of 1.86M shares. The market capitalization for the company is reported at $542.00M.
EnteroMedics Inc (NASDAQ:ETRM) inclined 0.38 points or 7.13% at the market, as a developer of minimally invasive medical devices to treat obesity, metabolic diseases and other gastrointestinal disorders, recently declared that the Methodist Dallas Medical Center successfully accomplished its first implant of the Company’s vBloc® Neurometabolic Therapy through the Veterans Choice Program. The surgery was performed on July 24, 2017 by Sachin Kukreja, M.D., a bariatric surgeon in Dallas, Texas.
The stock opened at $4.98. It reached an intraday trading high of $5.20 and now trading at $4.66. The total volume traded for the day is 2.02M, as compared to its average daily volume of 114,511.00 shares. The current EPS for the company has been recorded at $-49.65 and the beta value recorded by the company stands at 3.03 points.