Dynavax Technologies Corporation
Nov 4, 2010

Dynavax Reports 2010 Third Quarter Financial Results

BERKELEY, CA -- (MARKET WIRE) -- 11/04/10 -- Dynavax Technologies Corporation (NASDAQ: DVAX) today reported financial results for the third quarter ended September 30, 2010, including $47.2 million in cash, cash equivalents and marketable securities. This compared to $57.4 million at June 30, 2010. In November 2010, the Company received $42.7 million from the successful completion of a public offering and a grant covering certain research costs, resulting in current cash, cash equivalents and marketable securities in excess of $83 million as of the date of this release.

In particular, the $47.2 million in reported cash at September 30, 2010 does not reflect the net proceeds of $42.0 million from the Company's public offering and $0.7 million in grants under The Patient Protection and Affordable Care Act of 2010 covering research and development costs from 2009 and 2010 for three of the Company's qualified therapeutic discovery projects including HEPLISAV?. The $10.2 million net cash usage reported for the third quarter 2010 included a $2.0 million initial purchase of the Company's common stock by Aspire Capital Fund, LLC that the Company received upon executing its September 2010 financing arrangement.

Total revenues of $11.6 million for the third quarter 2010 included recognition of the $10.0 million upfront payment received from AstraZeneca in 2006 following the recent amendment of our collaboration agreement. This compared to $2.9 million reported for the third quarter in 2009.

Total operating expenses of $18.4 million for the third quarter 2010, driven by continued clinical and manufacturing activities for HEPLISAV, were consistent with the $18.5 million reported for the second quarter 2010. Total operating expenses for the third quarter 2009 of $13.6 million were lower prior to restarting the HEPLISAV clinical program in September 2009.

The tables included as part of this press release provide a reconciliation of GAAP revenues and operating expenses to pro forma revenues and operating expenses.

About Dynavax

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

- 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,

                                --------------------  --------------------

                                  2010       2009       2010       2009

                                ---------  ---------  ---------  ---------

Revenues:

  Collaboration revenue         $  10,402  $   1,791  $  19,164  $  34,079

  Grant revenue                     1,218        887      2,697      2,921

  Service and license revenue          29        223        323      1,129

                                ---------  ---------  ---------  ---------

Total revenues                     11,649      2,901     22,184     38,129



Operating expenses:

  Research and development         14,204      9,631     40,729     29,202

  General and administrative        3,951      3,736     12,694     11,693

  Amortization of intangible

   assets                             245        245        735        735

                                ---------  ---------  ---------  ---------

Total operating expenses           18,400     13,612     54,158     41,630

                                ---------  ---------  ---------  ---------



Loss from operations               (6,751)   (10,711)   (31,974)    (3,501)



Interest income                        12         18         53        174

Interest expense                     (399)       (93)    (1,229)      (120)

Other income (expense)              2,140         80     (9,036)       (40)

                                ---------  ---------  ---------  ---------



Net loss                           (4,998)   (10,706)   (42,186)    (3,487)



Add: Losses attributed to

 noncontrolling interest in SDI        --      1,200         --      3,192

                                ---------  ---------  ---------  ---------



Net loss attributable to

 Dynavax                        $  (4,998) $  (9,506) $ (42,186) $    (295)

                                =========  =========  =========  =========



Basic and diluted net loss per

 share attributable to Dynavax

 stockholders                   $   (0.06) $   (0.24) $   (0.57) $   (0.01)

                                =========  =========  =========  =========

Shares used to compute basic

 and diluted net loss per share

 attributable to Dynavax

 stockholders                      86,826     40,153     74,519     39,990

                                =========  =========  =========  =========











                     DYNAVAX TECHNOLOGIES CORPORATION

           RECONCILIATION OF GAAP REVENUES TO PRO FORMA REVENUES

                              (In thousands)

                               (Unaudited)



                                          Three Months       Nine Months

                                              Ended            Ended

                                          September 30,     September 30,

                                        ----------------- -----------------

                                          2010     2009     2010     2009

                                        -------- -------- -------- --------



GAAP revenues                           $ 11,649 $  2,901 $ 22,184 $ 38,129

ADD:

Collaboration funding incurred

 under SDI programs                           --    1,009       --    2,551

LESS:

Non-cash deferred revenue from

 collaborations                           10,000       --   10,000   28,485

                                        -------- -------- -------- --------

Pro forma revenues (1)                  $  1,649 $  3,910 $ 12,184 $ 12,195

                                        ======== ======== ======== ========



    (1) These pro forma amounts are intended to illustrate the Company's

        revenues including collaboration funding provided for the SDI

        programs and excluding certain non-cash items. The collaboration

        funding is reflected in the amount attributed to the

        noncontrolling interest in SDI in the Company's consolidated

        statement of operations, but would have been reported as revenue

        if SDI's results of operations were not consolidated with those of

        the Company. 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       Nine Months

                                              Ended            Ended

                                          September 30,     September 30,

                                        ----------------- -----------------

                                          2010     2009     2010     2009

                                        -------- -------- -------- --------



GAAP operating expenses                 $ 18,400 $ 13,612 $ 54,158 $ 41,630

LESS:

Stock-based compensation expense             586      916    1,552    2,102

Amortization of intangible assets            245      245      735      735

                                        -------- -------- -------- --------

Pro forma operating expenses (2)        $ 17,569 $ 12,451 $ 51,871 $ 38,793

                                        ======== ======== ======== ========





    (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,

                                                      2010         2009

                                                  ------------ ------------

Assets

 Cash and cash equivalents and marketable

  securities                                      $     47,231 $     36,720

 Property and equipment, net                             6,634        7,997

 Goodwill                                                2,312        2,312

 Other intangible assets, net                              544        1,279

 Other assets                                            5,069        2,162

                                                  ------------ ------------

Total assets                                      $     61,790 $     50,470

                                                  ============ ============



Liabilities and stockholders' equity

 Accounts payable                                 $      2,067 $      1,686

 Accrued liabilities                                    17,530        7,507

 Warrant liability to Holdings                              --        2,567

 Current portion of deferred revenue                     1,429        2,718

 Noncurrent portion of deferred revenue                  6,012       17,083

 Long-term note payable to Holdings                     10,540        9,342

 Long-term contingent liability to Holdings                944        3,040

 Other long-term liabilities                                60          151

 Stockholders' equity                                   23,208        6,376

                                                  ------------ ------------

Total liabilities and stockholders' equity        $     61,790 $     50,470

                                                  ============ ============

Contact:

Jennifer Lew

Vice President, Finance

510-665-7217

Email Contact



Source: Dynavax Technologies

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