Sanofi has announced a significant move to strengthen its vaccine portfolio through the acquisition of Dynavax Technologies for approximately $2.2 billion. This strategic acquisition, finalized on Wednesday, involves Sanofi purchasing Dynavax shares at $15.50 per share, reflecting a 39% premium over the stock’s closing price on Tuesday. The transaction is expected to enhance Sanofi’s competitive edge in the vaccine market, particularly against rival manufacturer GSK.
Founded in 2004 and based in Emeryville, California, Dynavax is known for its sole commercialized product, Heplisav B, a hepatitis B vaccine approved in the United States and Europe for adults. Unlike GSK’s hepatitis B vaccines, which require three shots across six months, Heplisav B is administered in just two doses one month apart. Dynavax claims that its vaccine allows patients to achieve high levels of protective antibodies faster, while maintaining a similar safety profile to its competitors.
In 2024, Heplisav B generated $268.4 million in sales, marking a 26% increase over the previous year. Recently, Dynavax reported that its market share for hepatitis B vaccines increased to 46%, up from 44% in 2023. Currently, Sanofi’s offerings in this area primarily focus on pediatric vaccines, including Vaxelis, which protects against hepatitis B among other pathogens and is administered in a three-shot series for children.
Strategic Implications of the Acquisition
The acquisition strengthens Sanofi’s adult immunization capabilities by integrating Dynavax’s differentiated vaccines. According to Thomas Triomphe, Sanofi’s Executive Vice President of Vaccines, this move underscores the company’s commitment to providing vaccine protection throughout the lifespan. He stated, “Dynavax enhances Sanofi’s adult immunization presence by adding differentiated vaccines that complement Sanofi’s expertise.”
Dynavax is not only known for Heplisav B; it is also developing a shingles vaccine candidate, Z-1018. Preliminary data from an early-stage study released in August indicated that the vaccine was well-tolerated and produced robust immune responses. This candidate is currently being compared with GSK’s Shingrix, which dominates the shingles vaccine market.
The acquisition arrives at a time when hepatitis B vaccines are under increased scrutiny from regulatory authorities. Recently, the Advisory Committee on Immunization Practices (ACIP) voted to recommend shared decision-making for hepatitis B vaccinations for children, a shift from the long-standing guideline that vaccinations should start at birth. This adjustment has raised concerns among stakeholders regarding the future of hepatitis B immunizations.
Analyst Matt Phipps from William Blair noted that the acquisition aligns with Dynavax’s strategy amidst growing regulatory concerns and investor inquiries regarding its value creation. He emphasized that Sanofi represents a logical partner for Dynavax, given its extensive vaccine capabilities and the lack of adult hepatitis B and shingles programs in its current portfolio.
Future Prospects and Financial Considerations
Dynavax’s pipeline also includes a plague vaccine developed in collaboration with the U.S. Department of Defense, as well as clinical-stage programs targeting pandemic influenza and Lyme disease. In addition, Dynavax recently secured global rights to Vaxart’s oral Covid-19 vaccine candidate, investing $25 million upfront along with a $5 million equity stake in Vaxart.
The $2.2 billion acquisition marks Sanofi’s second major investment in vaccines this year. In July, the company announced a $1.15 billion deal to acquire Vicebio, a startup focused on developing a bivalent vaccine for respiratory syncytial virus (RSV) and human metapneumovirus (hMPV).
Sanofi plans to finance the Dynavax acquisition using its available cash resources. The deal has already received approval from Dynavax’s board of directors, but it still requires a majority of shareholders to tender their shares. The transaction is anticipated to close in the first quarter of 2026.
As the global vaccine market continues to evolve, this acquisition positions Sanofi to enhance its offerings and respond adeptly to changing regulatory landscapes and consumer needs.
