Dynavax Technologies Corporation Reports Third Quarter 2011 Financial Results

BERKELEY, CA--(Marketwire - October 27, 2011) - Dynavax Technologies Corporation (NASDAQ: DVAX) today reported financial results for the third quarter ended September 30, 2011, including $53.2 million in cash, cash equivalents and marketable securities at September 30, 2011. This amount does not include a total of $8.6 million, consisting of $6 million in previously announced payments from Dynavax’s collaborations with AstraZeneca and GlaxoSmithKline to be made after the close of the quarter and proceeds of $2.6 million from the sale of common stock to Aspire Capital received after the close of the third quarter.

Dynavax said that, based on developments to date and additional potential payments anticipated to be received or earned by year end under existing arrangements, it expects to end 2011 with approximately $50 million in cash, cash equivalents and marketable securities.

About Dynavax

Dynavax Technologies Corporation, a clinical-stage biopharmaceutical company, discovers and develops novel products to prevent and treat infectious and inflammatory diseases. The Company’s lead product candidate is HEPLISAV™, a Phase 3 investigational adult hepatitis B vaccine designed to provide rapid and superior protection with fewer doses than current licensed vaccines. For more information visit www.dynavax.com.

Forward Looking Statements

This press release contains “forward-looking statements” that are subject to a number of risks and uncertainties, including statements regarding our projected net cash usage and cash position. Actual results may differ materially from those set forth in this press release due to the risks and uncertainties inherent in our business, including whether successful clinical and regulatory development and approval of HEPLISAV can occur in a timely manner or without significant additional studies or difficulties or delays in development or clinical trial enrollment, whether the studies can support registration for commercialization of HEPLISAV; the results of clinical trials and the impact of those results on the initiation and completion of subsequent trials and issues arising in the regulatory process; the Company’s ability to obtain additional financing to support the development and commercialization of HEPLISAV and its other operations, possible claims against the Company based on the patent rights of others; and other risks detailed in the “Risk Factors” section of our current periodic reports with the SEC. We undertake no obligation to revise or update information herein to reflect events or circumstances in the future, even if new information becomes available. Information on Dynavax’s website at www.dynavax.com is not incorporated by reference in the Company’s current periodic reports with the SEC.

 -- tables to follow -- DYNAVAX TECHNOLOGIES CORPORATION CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except per share amounts) (Unaudited) Three Months Ended Nine Months Ended September 30, September 30, -------------------- -------------------- 2011 2010 2011 2010 --------- --------- --------- --------- Revenues: Collaboration revenue $ 369 $ 10,402 $ 7,098 $ 19,164 Grant revenue 658 1,218 2,437 2,697 Service and license revenue 147 29 652 323 --------- --------- --------- --------- Total revenues 1,174 11,649 10,187 22,184 Operating expenses: Research and development 11,777 14,204 39,706 40,729 General and administrative 4,217 3,951 13,025 12,694 Amortization of intangible assets -- 245 299 735 --------- --------- --------- --------- Total operating expenses 15,994 18,400 53,030 54,158 --------- --------- --------- --------- Loss from operations (14,820) (6,751) (42,843) (31,974) Interest income 18 12 74 53 Interest expense (485) (399) (1,462) (1,229) Other income (expense) 58 2,140 (99) (9,036) --------- --------- --------- --------- Net loss $ (15,229) $ (4,998) $ (44,330) $ (42,186) ========= ========= ========= ========= Basic and diluted net loss per share $ (0.12) $ (0.06) $ (0.37) $ (0.57) ========= ========= ========= ========= Shares used to compute basic net loss per share 124,069 86,826 119,244 74,519 ========= ========= ========= ========= DYNAVAX TECHNOLOGIES CORPORATION RECONCILIATION OF GAAP REVENUES TO PRO FORMA REVENUES (In thousands) (Unaudited) Three Months Ended Nine Months Ended September 30, September 30, -------------------- -------------------- 2011 2010 2011 2010 --------- --------- --------- --------- GAAP revenues $ 1,174 $ 11,649 $ 10,187 $ 22,184 LESS: Deferred revenue from collaborations -- 10,000 -- 10,000 --------- --------- --------- --------- Pro forma revenues(1) $ 1,174 $ 1,649 $ 10,187 $ 12,184 ========= ========= ========= ========= (1) These pro forma amounts are intended to illustrate the Company’s revenues excluding certain items for which cash was received in a prior period. Management of the Company believes the pro forma results are a more useful measure of the Company’s revenues because it provides investors the ability to evaluate the Company’s operations in the manner that management uses to assess the continued progress of operating programs. These pro forma results are not in accordance with, or an alternative for, generally accepted accounting principles and may be different from pro forma measures used by other companies. DYNAVAX TECHNOLOGIES CORPORATION RECONCILIATION OF GAAP OPERATING EXPENSES TO PRO FORMA OPERATING EXPENSES (In thousands) (Unaudited) Three Months Ended Nine Months Ended September 30, September 30, ------------------- ------------------- 2011 2010 2011 2010 --------- --------- --------- --------- GAAP operating expenses $ 15,994 $ 18,400 $ 53,030 $ 54,158 LESS: Stock-based compensation expense 1,287 586 3,934 1,552 Amortization of intangible assets -- 245 299 735 --------- --------- --------- --------- Pro forma operating expenses(2) $ 14,707 $ 17,569 $ 48,797 $ 51,871 ========= ========= ========= ========= (2) These pro forma amounts are intended to illustrate the Company’s operating expenses excluding certain non-cash charges in accordance with the financial statements that management uses to evaluate the Company’s operations. These pro forma results are not in accordance with, or an alternative for, generally accepted accounting principles and may be different from pro forma measures used by other companies. DYNAVAX TECHNOLOGIES CORPORATION SELECTED BALANCE SHEET DATA (In thousands) (Unaudited) September 30, December 31, 2011 2010 ------------- ------------- Assets Cash and cash equivalents and marketable securities $ 53,221 $ 72,154 Property and equipment, net 6,127 6,404 Goodwill 2,312 2,312 Other intangible assets, net -- 299 Other assets 3,059 3,080 ------------- ------------- Total assets $ 64,719 $ 84,249 ============= ============= Liabilities and stockholders’equity Accounts payable $ 1,313 $ 2,329 Accrued and other liabilities 8,823 11,786 Current portion of deferred revenue 1,429 1,429 Noncurrent portion of deferred revenue 4,583 5,655 Long-term note payable to Holdings 12,342 10,939 Stockholders’ equity 36,229 52,111 ------------- ------------- Total liabilities and stockholders’ equity $ 64,719 $ 84,249 ============= =============