Wall Street Loves Dynavax Technologies Corporation (DVAX). Should You?

As we close in on the decision date, though, shares of the drugmaker have recovered 30% of the ground they lost after the advisory panel’s decision was announced, perhaps as investors get more comfortable with the prospects the full agency will move forward with an approval. It’s still possible they could punt and kick the review out another three months or do as they did with Novo Nordisk and reject it. Analysts seem to discount that outlook and still figure it will get the nod, but with limited scope.

While the FDA is known for going its own way on occasion, it would still be unusual for it to buck the panel’s negative view, though the specific case for Hepsilav is somewhat unique in that the safety concerns centered around the potential for rare side effects. On the other hand, because there are other treatments on the market, I’m not certain we should anticipate the agency wandering far off the reservation here. In the end it’s a toss up for me, but let me know in the comments section which way you think the FDA will decide.

The article Wall Street Loves Dynavax. Should You? originally appeared on Fool.com and is written by Rich Duprey.

Fool contributor Rich Duprey has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned.

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.