Q4 2021 Dynavax Technologies Corp Earnings Call
Yeah.
Good day, ladies and gentlemen, and welcome to the <unk> technologies fourth quarter and full year 2021 financial results call at this as a reminder, this conference call is being recorded at the end of the company's prepared remarks, we will open the call up for questions and provide specific instructions at that.
That point I would now like to turn the call over to Nicole Arndt senior.
Senior manager Investor Relations you may begin.
Thank you good afternoon, and welcome to the <unk>.
Fourth quarter.
Year 2021.
<unk> financial results.
Update conference call.
And to our press release issued today, a supplementary slide presentation that accompanies today's call is available in the events section of our website.
Before we begin.
Again, we will be making forward looking statements.
But not limited to statements regarding potential market sizes impact of Aci's recommendation financial guidance and trends and potential future uses.
<unk> adjuvant these statements involve risks.
Certainties that could cause actual results to differ materially. These risks are summarized in today's press release and are detailed in the risk factors section of our 10-K filed today with the SEC.
We encourage you to review.
Our forward looking statements speak as of today and undertake no obligation to update such statements at a later date.
Today's call Brian sensor, our CEO will provide an overview of our 2021.
And strategic priority, John <unk> Senior Vice President of commercial.
Turning to the commercial performance of pipe with a fee.
Rob Janssen, our Chief Medical Officer will provide an overview of our current clinical pipeline and Kelly Macdonald, Our CFO will review, our 2021 results and provide financial guidance for 2022.
I'll now turn the call over to Ryan Spencer.
Thank you Nicole and thank you all for joining us today.
2021 was a truly transformative year for <unk>.
We successfully executed on our core priorities, which are driving couple of SaaS growth advancing our CPG can 18, Ashland supply business for COVID-19 vaccine and building our clinical pipeline leveraging our proven adjuvant technology.
Execution of these core priority enabled record total revenue of $439 million or.
Our first full year of profitability and $546 million in cash and investments in 2021.
We expect to continue to grow revenue in 2022 for both <unk> and CPG to 18 hazard supply and anticipate another year of profitability.
We believe the strength of our current financial position.
The significant revenue growth expected in 2022 provides a solid foundation for our future success as we continue to advance opportunities to leverage commercial capabilities and our proven adjuvant to deliver value for patients and our shareholders.
We are extremely pleased with <unk> performance in 2021, achieving $62 million net product sales, which represent 70.
Both sales growth compared to the previous year.
Looking forward, we expect continued revenue growth from increased market share and growth in the U S. Adult hepatitis B vaccine market as health care services returned to normal operations and as a result of the recent action by the CDC to expand the recommendation for hepatitis B vaccination, all adults, aged 19 to 59 years old.
We believe the adult hepatitis B vaccine market has the potential to grow to $800 million by 2020 and that <unk> has the profile to garner a majority market share.
Moving to our next core priority.
In support of the global effort to address the ongoing pandemic dining that's established multiple CPG to 18 adjuvant supply partnerships to support the development of technologically diverse COVID-19 vaccines. These partnerships have led to a portfolio of global commercial supply agreement with <unk> generated.
<unk> revenue in 2021 totaling $375 million or COVID-19 supply partners have generated significant data demonstrating efficacy immunogenicity and safety of their COVID-19, vaccines, which has led to emergency use.
<unk> and multiple additional regulatory application with response is anticipated in the first half of 2022.
Our COVID-19 supply partners continues to expand their clinical data support broad utilization of their vaccine. This includes additional clinical trials to support Hummel August and hit our largest boosters and elderly and pediatric indications.
Just on the impressive phase III datasets across our COVID-19 partnership portfolio. We believe the combination of high efficacy and Immunogenicity with favorable safety and Tolerability could be very competitive profiles as a COVID-19 vaccine landscape evolves, but endemic market.
These data reinforce our belief that CPG <unk>, a unique and valuable asset for the development of improves and novel vaccines.
Beyond COVID-19, we are leveraging TPG <unk> profile in our clinical pipeline to develop new and improved vaccine.
<unk> identified an advanced two programs into the clinic he'd Atkins shingles that if successful could provide significant U S and global revenue opportunities. Our near term goal. This year is to generate initial clinical data that we anticipate will support meaningful differentiation to establish our high value pipeline.
<unk> designed to produce best in class products targeting large markets.
Additionally, we are conducting preclinical efforts to develop candidates utilizing <unk> to improve the immune response to existing vaccine antigen as well as truly novel product targeting diseases with no current vaccine options.
In 2022, we anticipate another profitable year, driven by increasing revenue from our CPG <unk> agile supply business, COVID-19, vaccines and from increasing <unk> sales with.
With $546 million in cash and equivalents at year end, we are well capitalized to invest in driving growth from our diverse portfolio of assets.
We believe the combination of our strong financial profile.
Revenue generating assets and an emerging pipeline of product candidates based on our proven adjuvant technology provides a solid foundation for <unk> future.
We are immensely proud of our results this past year, our achievements in 2021 and the opportunities. We believe lie ahead are made possible by the hard work and dedication of our talented team.
I'll now turn the call over to Don Consol to provide more details on <unk> performance.
Thank you Ryan.
2021 was an exceptional year for <unk>.
Sure that despite the ongoing impact of the pandemic <unk> achieved record performance in all time highs in revenue and market share growth.
<unk> is the first and only FDA approved adult hepatitis B vaccine that allows series completion with only two doses in one month.
Series completion is essential for protection.
Unfortunately, most adults never complete a three dose hepatitis b vaccine.
So just curious completion is more critical now than ever in the era of universal adult hepatitis B vaccination.
Do those help us abbvie can make series completion easier and protect more patients faster.
In 2021, <unk> achieved $52 million and net product revenue the highest annual revenue since launch this.
Annual revenue outcome represents a 72% increase compared to 2020 and was achieved despite the hepatitis C market remaining below historical norms due to the pandemic.
During the fourth quarter of 2021 total hepatitis B market utilization was at 66% of pre pandemic levels. Additionally.
Additionally, the hepatitis C market decreased by approximately 25% from third quarter due to seasonal purchasing patterns of key segments and COVID-19 booster administration's campaign.
This market decline was consistent with the expectations, we shared during our last earnings call.
These headwinds <unk> total market share in the fourth quarter increased to 26%.
From 18% during the same period last year.
We continue to believe that investing in heavily therapy to increase market share will be a meaningful driver of revenue over time as the pandemic begins to subside.
In addition to continued growth in total market share.
That would be targeted market share increased to 34% in the fourth quarter up from 26% during the same period last year.
Furthering our positive outlook for helpless Abbvie, the CVC Advisory committee optimization practices or ACC voted unanimously at our November meeting to recommend that all adults, 19% to 59 years of age should receive hepatitis B vaccination.
This recommendation simplifies the identification of patients who need a hepatitis b vaccine compared to the prior risk based recommendation and significantly expand the number of adults in the U S who should be vaccinated against hepatitis B.
With the ACP Universal recommendation hepatitis B vaccines have the potential to become one of the most widely used adult vaccines across health care systems.
We believe that the ACF recommendation will be a significant catalyst for growth and we estimate the market opportunity could grow to over $800 million by 2027 was help us that would be well positioned to secure majority of the market share over time.
We remain confident in our ability to generate momentum and look forward to continuing to drive long term growth for the brand.
With a proven clinical profile and strong commercial execution.
We expect further market share gains and revenue growth in 2022.
Thank you to our clinical pipeline I will now turn the call over to Rob Janssen, Our Chief Medical Officer.
Thank you Don <unk> has demonstrated its ability to enhance the immune response with a favorable tolerability profile established through a wide range of clinical trials and real world commercial use.
Very excited to advance our clinical pipeline leveraging CPG team to develop improved vaccines in indications with unmet medical need.
During 2022, our studies will generate initial clinical data that we anticipate will begin to support meaningful differentiation from the existing vaccines.
Our improved tetanus, diphtheria, and pertussis or teed up vaccine program.
Since 1991, when <unk> cellular pertussis vaccines replaced wholesale vaccines whooping cough cases increased by 85% in the United States due to weak efficacy and asymptomatic transmission.
Last year, we initiated a phase one clinical trial evaluating an improved TDAP vaccine that uses our CPG <unk> adjuvant.
Top line safety Tolerability and Immunogenicity data in adults are expected in the first half of 2022 with that lesson data expected in the second half of 2022.
Second is there a CPG 10, 18 adjuvant the shingles vaccine program.
<unk> is a painful condition that results from the reactivation of a latent varicella zoster virus infection more commonly known as chicken pox with the tax leading to potential complications, including chronic pain, which can be stability.
While an effective vaccine currently exist. We believe there is an opportunity to significantly improve the reactive janice the profile, while maintaining comparable efficacy.
Our product candidate will be adjuvant, it with CPG tilney team, which has demonstrated its ability to enhance the immune response without extensive reactive genesis.
In both <unk> and multiple COVID-19 vaccines.
Additionally, we believe the CPG two <unk> mechanism of action is ideal for an improved shingles vaccine as it has been shown to elicit CD four T cell responses, which are key in controlling reactivation of the zoster virus and preventing shingles in.
In late January we dosed the first patient in a phase one study designed to evaluate safety Tolerability and Immunogenicity.
Data from this trial are expected to be available by the end of 2022.
Finally in the second half of 2022, we anticipate initiating a phase II clinical trial for a plagued vaccine utilizing our CPG 10 18 adjuvant.
This clinical trial is being conducted in collaboration with and funded by the U S Department of defense.
We believe leveraging the proven profile of CPG 10, 18 enables us to develop vaccine candidates that have significant opportunities with lower development risk.
I'll now turn the call over to Kelly to review, our 2021 financial results and provide our 2022 financial guidance.
Thank you Rob.
We're excited to highlight our strong financial performance for the fourth quarter and full year 2021, and review our 2020 financial guidance.
For additional information please refer to our press release, and our 10-K filed with the SEC.
Overall 2021, Mark the historically strong year for Diamondback.
Several actions in 2021 to position ourselves for future success and significantly strengthened our financial profile.
These steps included the execution of multiple COVID-19 vaccine adjuvant supply agreements expansion of our commercial footprint by more than 50% to drive market share position for long term growth.
And we exited the year with an established and focused clinical pipeline, including our recently announced single phase one trial.
This strong execution led to Diamondback <unk> first ever full year profitability with GAAP net income of $77 million.
And now let's move on to financial highlights for the year.
Starting with revenue we delivered total revenue of $439 million for 2021 for the full year 2021, <unk> generated net sales of $62 million up 72% from $36 million in 2020. Additionally.
Additionally, diamondback $375 million in CTG can 18 adjuvant revenues in 2021, an exceptional year in achieving our previously issued 2021 financial guidance.
In the fourth quarter of 2021, we reported $17 million can you help us on fee revenue up nearly 50% compared to $2 million in the fourth quarter of 2020.
And we recorded a $177 million adjuvant sale under our COVID-19 commercial supply agreements in the fourth quarter.
Representing approximately half of the CTG <unk> revenue recorded for the full year in 2012.
Looking ahead to 2022, we continue to be bullish on our ability to execute our strategy to supply CTG Kenny keen to have a diverse portfolio of COVID-19 vaccine developers and based on our existing commercial supply agreement, we expect at least $550 million TPG <unk> net revenues for 2000.
This guidance represents at least 47% growth year over year.
Moving on to expenses, our research and development expenses for the full year 2021 or approximately $32 million.
Compared to $29 million in 2020.
Selling general and administration expenses for the full year of 2021 quarter of $100 million compared.
Compared to $79 million for 2020 with the increase primarily driven by the mid year expansion of our <unk> sales team.
Moving on to profitability and cash.
For the full year 2021, Diamondbacks generated GAAP net income of $77 million or <unk> 62 per share basis to 57 per share diluted.
This is compared to a net loss of $75 million or a loss of 75 cents per share basic and loss of 78 cents per share diluted for the full year of 2020 I'd.
I'd like to take a moment to point out two unique items on our income statement.
We utilized $158 million in NOL to reduce 2021 taxable income and second our GAAP net income includes noncash fair value adjustments for the then outstanding warrants.
During the full year 2021, the impact to net income from these fair value adjustment was a loss of $49 million.
This is compared to a gain of $4 million from the prior year.
We expect these quarterly adjustments to be complete after the first quarter of 2022, given that the Warren recently expired.
From a cash perspective, diamondbacks generated $336 million in cash from operations for the full year 2021 and ended the year with a very robust balance sheet cash cash equivalence and marketable securities on hand of $546 million.
Compared to $165 million as of December 31.
Turning now to our 2022 financial guidance.
As mentioned earlier, we expect 2022, CTG <unk> adjuvant revenue at least.
$550 million for the year with a corresponding gross margin of approximately 50% with potential fluctuations quarter to quarter, depending on customer mix.
This guidance represents revenue growth of at least 47% year over year.
As we continue to invest in building a durable and sustainable business. We expect SG&A expenses for 2020 to be in the range of $120 million to $140 million for the full year 2022, reflecting a full year of our expanded sales force supporting the significantly expanded market opportunity for help with sandy and in support of our cordless.
Those processes.
We anticipate R&D expenses to be between $55 million to $70 million.
We expect to deliver multiple clinical catalyst by the end of the year with our TDAP shingles adjuvant vaccine programs as well as our fully funded contract with the department of defense for Phase two clinical trial in place.
That is related to the plate clinical trial will be fully funded by the U S Department of defense with such offsetting revenues to be reported topline and other revenue.
Lastly, we expect to realize the benefit of a full year of reduced interest expense associated with our 2021 debt refinancing translating to expected interest expense in 2022.
<unk> 7 million, which.
Which represents a 40% decrease from full year 2021 interest expense.
We believe that continued execution on our priorities coupled with our cash balance and the numerous steps taken to strengthen our financial profile position us well for 2022 and beyond the.
Delivering shareholder value is at the heart of successfully meeting our strategic priority. This includes driving helpless abbvie market share executing on our CTG can 18, adjuvant supply partnerships and disciplined allocation of capital to advance our clinical pipeline leveraging our adjuvant.
Lastly, and in closing I would like to Echo Brian's comments on the incredible banamex team and their commitment and effort towards our mission I'd like to pass on our sincere thanks to each of our teammates for their hard work and dedication. Thank.
Thank you everyone for your attention today, operator, we would now like to open the Q&A portion of today's call.
Yes.
Thank you to ask a question you will need to press star one on your telephone to withdraw your question press the pound key please standby, while we compile the Q&A roster.
Yes.
Our first question comes from the line of Phil Nadeau of Cowen Your line is open.
Good afternoon, congratulations on a very productive year, a couple of questions from us. So first on the CPG guidance, how much of the $550 million in revenue.
From binding agreements.
Sure.
You are very confident that the revenue is going to come in versus how much is.
Prediction of future demand.
Thanks, Phil.
The guidance, we provided is based on our binding commitments, we have as you know from our prior discussions and calls.
Our.
Collaborators have to place orders well in advance of obviously selling product and delivering their final dose. So we have good line of sight that $750 million.
Perfect and then in terms of milestones are there any important guideposts that you'd point us to as we evaluate the collaborative product collaborative programs to determine if there could be upside beyond the $5 50 from here anything in particular that you yourselves are looking towards as you.
Try to gauge the manufacturing capacity and demand that could come above your current funding agreements.
Yes.
It's fairly obvious ones right, it's the product approvals and then additionally.
All of our collaborators.
So far sure shared publicly that any of their contracts that they have in the marketplace. So that would be the most obvious.
Ways to identify.
Milestones tied to future demand will be watching the collaborators progress perfect.
One last question from Us on HBV.
You were very clear as to where you think.
HBV vaccine market could grow by 2027.
Curious how quickly you think the ACI piece recommendation could begin to impact the.
The market you think that there'll be a faster increase here than what we're seeing with diabetes.
And is there anything that <unk> can do to facilitate the understanding of the new nuke that much.
Got you won't take that yeah sure Phil.
I believe actually when it is going to do quite frankly for a lot of customers that make us something that theyre going to actually have to address.
In fact, right now we're seeing it with a lot of our large integrated delivery network customers that with the recommendation and actually scheduled to be published a few weeks ago.
It's actually a reality, we believe it is going to be opportunity for us to continue to engage.
Around and with to drive market share.
The question of how fast.
It can take time method as if anything certainly, but we see it as a catalyst really around market share growth for <unk> be more sub in more southern expanding here in the near term as it relates to the size of the market.
Great. Thanks for taking my questions.
To add to that quickly until the difference between that is a pretty stark difference compared to what we saw at diabetes recommendation, which frame still hasn't really had much uptick which makes this one so valuable because it's it's much easier to identify patients with age based recommendation for that this recommendation.
Yes got it.
Thanks, again for taking my questions and congrats on a productive year.
Phil.
Thank you. Our next question comes from Madhu Kumar of Goldman Sachs. Your line is open.
Hi, This is alright for Baidu so.
So first one first question, what's the path for us to get majority SBC market share.
The onset of the path to get majority market share is that what you said.
That's right.
Well done.
I want to go ahead and think about kind of review our long term plan and how we're structured.
And the patent really just starts obviously key segments integrated delivery networks segment being a critical one that we put a lot of our marketing and sales resources toward.
Retail segment has been a critical segment as well.
That we continue to engage both the headquarter as well as regional leaders.
Around Apple Safi.
Our <unk> segment.
We continue to gain market share quarter over quarter and fully provide the foundation for us to.
Have the majority market share in the in the U S markets.
And I think one of the things. We can also point to is the continued year over year growth in market share demonstrated since launch and what we our commentary all along the way has been this is a trend that we're going to have to.
See overtime, and we expect to stick to the plan.
And continue to build share I think the other thing that we should keep in mind that the amount of effort that we're putting in promotion around the expansion.
And how should we think about the first half 'twenty two T to update us.
Yeah.
So well I think let's take the whole the whole picture I think you really need to look at the whole picture. The first half date in the second half day Theyre very similar.
Regarding immunogenicity and safety results just in two separate populations one being adults.
And then followed by adolescents a phase one trial was run to start with adults and then follow up into adolescence. So.
Basically what we are excited to be delivering it with clinical data will be the higher levels of immunogenicity with.
Yes.
A reasonable tolerability profile with the hopes are not supportive of the profile that we hope to move forward as we continue development.
Great. Thanks, and then one last question how should we look at sort of the rollout as you did payments through 2022.
Yes.
How do we expect the adjuvant.
<unk> payments to rollout to 2022.
Great how should we consider the rollout aggregate payments through 2022.
So as soon as these.
Revenue by quarter, we haven't really guided to revenue by quarter till I don't know if theres any commentary just want to provide.
So we as a reminder, we do structure our arrangement such that we are we do.
Chunk of payment upfront when we secure manufacturing facility and then we do a security additional and final payment upon delivery of adjuvant to our customers. So you will see some amounts on the balance sheet, reflecting amount that we collected to date, but have not yet that are associated with price and will deliver in the future again, we haven't.
Got it in the quarterly deliveries, but that's generally when we would expect to recognize that revenue.
Uh huh.
Okay.
Alright. Thanks.
Thank you. Our next question comes from Ed White of H C. Wainwright. Your line is open.
Yes.
Congratulations on a great quarter and thanks for taking my questions.
So the first question I have is just when thinking about the ACF.
Recommendation I believe in the past you had mentioned.
Potential DTC advertising.
Just wondering if you can give us any general thoughts of what that would look like.
Sure John Once you go.
That's right Mike.
Yeah. So.
The way, we're thinking about it.
Essentially we see retail pharmacy is a great capture point or the consumer.
With this expanded recommendation.
So we'll be targeting certain metro policies in areas that have certain characteristics.
That we feel will have a higher probability of success with our DTC efforts.
Nominally driving consumer to retail pharmacy.
Around this new recommendation is strategy, how highly focused DTC effort and I think the I think the risk of that term generally could lead you down the path of magazine and television commercial that is not the focus here. It's just it's still a very highly focused marketing campaign, just not focused on decision makers.
And position right.
Great. Thank you.
And maybe just to drill down a little bit on the.
Opportunities from the from your various partners.
We saw neither there was a hiccup.
In the U K.
Following the termination notice there I'm just wondering if maybe you can.
Discuss a little bit about Val NEVA and the potential there for sales.
I think they had committed to 27 million doses to be delivered to the European Commission.
This year with 60 million doses overall I just wanted to get your thoughts on that contract and what they've said publicly and.
Going back to it.
Another question was how we should think of that going.
Going forward I think it was starting in April you had mentioned deliveries in the past. Thank you.
Sure.
Nothing has changed about but what we said in the person May I think you highlighted the public nature of that contract with E C very clearly.
Ultimately, we're very excited if you think about our portfolio. This is the unique thing about our position you you mentioned about neither in Europe and how they keep the contract received 27 million. This year plus an option for delivery of doses next year. So we're positioned to support that contract as it evolves, obviously, it's going to be.
On them, achieving the approval and EU decided to take on that option for them next year.
And then I think the other key point there is that we have a similar divert diversification across other geographies with our other collaborators. So Cal NEVA provides us good access into Europe , but we also with biodiesel in India Clover in China in Medicine in Taiwan have what I would say you know original.
Polio or geographies too.
To allow us to continue to build this business.
Okay.
Just you know you had mentioned earlier again about the binding commitments that youre looking for the $550 million revenue this year.
You know if you do see a termination notice just like you did with found either in the U K.
Does that change the contract or are you no longer bound to deliver.
Those are the.
Do you have into that potential client.
Yeah.
One of them, we filed or a commercial.
Our supply agreements and agreements you can reference these in more detail, but what does that mean, if it was our first agreement and at the time, we had purposely built in flexibility around the UK contract, which which allow for them to cancel but as you recall, we didn't have to return the funds used to support building the supply that was a very.
Intentional term in interest in that contract and that contract alone. So are the remainder of our contracts do not have the same flexibility for canceling orders that existed in the labor contract that was tied specifically to the UK obligation.
Okay, great. Thanks for taking my questions.
Sure. Thanks, Ed.
Thank you. Our next question comes from Matt Phipps of William Blair. Your line is open.
Hey, good afternoon, Thanks for taking my questions and congrats on a great year.
Doug you gave us market share in Q4 or I'm, sorry utilization in Q4, you know Covid impact I'm wondering if you can just comment anything on trends you're seeing here to start this year.
And you know hopefully places are opening up a little bit more I know, it's kind of more recently, so maybe it's too early to tell.
And you know you're not giving us guidance on <unk>, but you know it seems consistent maybe around $100 million just wondering how you feel about that.
Yeah, Hey, Matt I know like so regarding the.
The impact of utilization here in Q1, obviously.
Obviously with the discrete impact of on the crime and variant and certainly had an impact on health care operations widespread, especially in the month of January into February we are seeing that start to reverse a little bit, whereas the thick out whether it be nurses and physicians et cetera are coming back to work and so that had a huge.
Impact on operations and so with that.
We are seeing utilization, that's slightly less than what we saw in Q4.
Still again early here in the corner, but that's how we're seeing a trend, but you know from the standpoint of looking ahead, we see you know obviously it.
Going back from a standpoint of health care operations, which allows.
Drive market share and revenue in 2022, as we mentioned before.
That we can't provide any additional commentary on on on.
100 million versus any other number but with $62 million for this year. We have said very clearly we are confident and expect continued growth of the brand. Despite don's comments around Q1 omicron impact.
We see that being very discrete and we're very excited to see health care operations returned to normal and frankly to begin the initiatives now that the schedule was updated with the universal recommendations. So we will drive.
Drive hard to expand the market and to capture share and look forward to providing more definition on revenue. When we can do so with a certain level of credibility around reduced volatility in the underlying overall market I think that that's something that we don't we're not alone in this is within the adult vaccine space broadly so.
We look forward to being into a position where we can provide you more.
Detailed updates in the future.
Sure Chris.
Okay.
And then you know this isn't like a couple of questions, but as far as the again the committed 550 million do you feel comfortable with is that is there.
Poodle flexibility in those contracts just given some of the comments I forget to D C and separately.
You know almost a little more spaces in some of their donations any I guess risk for those.
Contract shall deliveries.
Your are your partners to ask for those to be pushed into 2023.
Well I think there is.
You know, there's the contracts are pretty defined Matt.
With defined delivery date, obviously, what's important to understand as well.
When we receive orders, we then place orders, which we have to standby and therefore, our customers have a standby their orders as well. So we work very collaboratively collaboratively with our customers that within reason to support their business and the success of their programs, but obviously we have to.
Manage this business appropriately so.
Like I said the the the.
Rationale that underpins the $550 million revenue guidance is a con.
Contracts that we have at hand.
And that we expect to receive.
Receipt deliver product form.
Yeah.
Okay.
Great. Thanks for taking my question.
Great. Thanks, Matt.
And we have no further questions at this time I would now like to turn the call over to Ryan Spencer CEO for closing remarks.
Thank you operator, we have made tremendous progress with our three strategic priorities help us that'd be commercialization CPG kind of seen adjuvant COVID-19 supply business and expanding our development pipeline. We believe our successful execution to this point has built a solid foundation to further enable our corporate mission of protecting the world against infection.
We expect continued revenue growth, perhaps with that be driven by increasing market share and we're excited to begin our initiatives to grow the market to driving implementation of the new expanded universal recommendation Frindle 19 decision.
Leading to another year of increasing product revenue and strengthening the long term value of the brand. We will continue to execute on our commitments for our CPG and 18, COVID-19 supply business driving another year of record product revenue of at least $550 million in adjuvant sales in our clinical pipeline, we expect multiple proof of concept data.
Read out throughout the year.
Providing important validation of our pipeline of differentiated vaccines for teed up in shingle as well as the initiation of phase II Central playing we look forward to updating you on our progress throughout the year. Thank you for joining US today, we appreciate your time and interest in Diamondback.
Operator, you may end the call.
Ladies and gentlemen, thank you for joining US today. This concludes today's conference call you may now disconnect.
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