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Biotech / Medical : Dynavax DVAX -- Ignore unavailable to you. Want to Upgrade?

To: Steve Lokness who wrote (30)	10/11/2006 11:42:15 AM
From: nigel bates	Respond to of 184

>>So how do shareholders ensure CEO's with a strong sense of ethics get promoted?<< Beats me. My point was that the only way you will solve the problem of Joe Stockholder being diluted at the expense of the big guys is to have a rule requiring that new issues of stock are offered, pro rata, to all existing shareholders - which is how "rights issues" operate in the UK. Otherwise you are endlessly questioning management 'judgement calls' - which are obviously (but not demonstrably) no such thing. (Read the last few hundred posts on the Myriad thread, and you'll see how difficult it is to get agreement on this issue...)

To: Steve Lokness who wrote (30)	10/11/2006 11:46:52 AM
From: BulbaMan	Read Replies (2) \| Respond to of 184

DVAX's timing of their secondary certainly looks dumb. They surely could have held off pricing the secondary until after public release of the NEJM article and, if it were my call, until after release of the Tolamba results in January, 2007. But in management's defense, they really had no way of knowing the stock would jump so much on publication of a pilot study's results that were five years old and that had been superceded by Tolamba's Phase 2/3 trial results reported in January, 2006. In addition , DVAX's stock had a history of lukewarm responses to prior good news; e.g., to the AztraZeneca partnership announced in early September. In fact, it might be that the secondary itself, and some related pump priming by DVAX's investment banker, Pacific Growth Equities, was the reason DVAX had such a run on the NEJM news. Finally, it should be noted that the secondary's provisions included a 30-day lockup for DVAX management, so it's unlikely they personally benefitted.