Dynavax Acquires Rights to Vaxart's Oral COVID-19 Vaccine in $30M Deal

Dynavax Technologies has entered into an agreement with Vaxart to acquire global rights to the latter's investigational oral COVID-19 vaccine candidate. The deal, announced on November 6, 2025, involves an upfront payment of $30 million, positioning Dynavax to evaluate phase 2b data before making a more substantial commitment to the program.

Deal Structure and Financial Terms

Dynavax's initial investment comprises a $25 million upfront payment and a $5 million equity investment in Vaxart. The agreement grants Dynavax an option to further develop the asset once phase 2b data becomes available. At that point, Dynavax can either terminate the deal or proceed by paying an additional $50 million.

Should Dynavax choose to advance the program, the company has committed to $195 million in regulatory milestones and $425 million in success-based sales payments. This structure, as noted by William Blair analysts, allows Dynavax to limit capital expenditures until clear data demonstrating benefits over existing mRNA-based vaccines is available.

Clinical Trial Progress and Challenges

The phase 2b trial for Vaxart's oral COVID-19 vaccine has faced several hurdles, primarily due to fluctuating U.S. government support. The U.S. Biomedical Advanced Research and Development Authority (BARDA) initially funded the study but has issued multiple stop-work orders throughout 2025.

Despite these setbacks, the trial has enrolled approximately 5,400 participants, fewer than originally planned. Dynavax CEO Ryan Spencer assured investors that the study remains "adequately powered to demonstrate an improvement over the comparator mRNA vaccine." Topline data is expected in late 2026.

Market Potential and Strategic Rationale

While the COVID-19 vaccine market has cooled, Dynavax sees potential for growth. Spencer stated, "We do believe that an improved vaccine, both with delivery mechanisms but also with underlying efficacy, has the opportunity to help grow the market." He added that there is "lots of room for market growth in COVID compared to other vaccines like flu that are given annually."

The acquisition provides a critical lifeline for Vaxart, which has faced financial challenges and multiple rounds of layoffs in recent months. The company's attempts to extend its cash runway, including a proposed reverse stock split, had been unsuccessful prior to this deal.

As the pharmaceutical industry continues to evolve its approach to COVID-19 vaccination, this partnership between Dynavax and Vaxart represents a significant development in the pursuit of next-generation vaccine technologies. The success of this oral vaccine candidate could potentially reshape vaccination strategies and market dynamics in the ongoing fight against the pandemic.