NEW YORK, June 4 (Reuters) - Proxy advisory firm Glass

Lewis urged Dynavax Technologies ( DVAX ) shareholders to elect

two of investment firm Deep Track Capital's four director

nominees, arguing change is needed because the company has not

been responsive enough to shareholders.

Glass Lewis recommended in a report that shareholders vote

for Brett Erkman, a Deep Track managing director, and biotech

industry executive Donald Santel to replace sitting directors

Brent MacGregor and Scott Myers, the current board chair.

Emeryville, California-based Dynavax ( DVAX ), which makes a vaccine

designed to prevent the hepatitis B infection that can lead to

chronic liver disease and death, has an 11-member board but only

four are standing for election this year.

Shareholders will cast ballots at the June 11 annual meeting

unless the two sides reach a settlement beforehand. Proxy

advisory firm recommendations often guide how money managers

vote on hot button issues like corporate elections and mergers.

"Shareholders should support the change of two incumbent

board seats given the company's prolonged capital conservatism

and the board's limited responsiveness to shareholder feedback,"

the report said. The two Deep Track nominees would bring

"relevant and differentiated experience to the board," it added.

Erkman has worked as a private equity investor in life

sciences and Santel is a life sciences executive who has done

deals.

Deep Track, Dynavax's ( DVAX ) second largest shareholder with a

nearly 15% stake, wants new directors to prioritize development

of the company's hepatitis B vaccine Heplisav instead of

pursuing new acquisitions. Dynavax ( DVAX ) is valued at $1.2 billion and

its share price has dropped 22% this year.

In May, Institutional Shareholder Services, Glass Lewis'

bigger rival, recommended that all company directors be

reelected, arguing Deep Track failed to make its case for

change.

A Deep Track representative welcomed the report. Dynavax ( DVAX )

disagreed with the recommendation, saying Glass Lewis noted its

board "has been meaningfully refreshed with high quality and

sector-specific expertise," a company representative said.