Dynavax Technologies Corporation
Mar 8, 2011

Dynavax Reports Fourth Quarter and Year End 2010 Financial Results

BERKELEY, CA -- (MARKET WIRE) -- 03/08/11 -- Dynavax Technologies Corporation (NASDAQ: DVAX) today reported financial results for the fourth quarter and year ended December 31, 2010.

Dynavax reported $72.2 million in cash, cash equivalents and marketable securities at December 31, 2010. This compared to $36.7 million at December 31, 2009. Total cash at the 2010 year end included approximately $83 million in net proceeds from public offerings completed during the year.

Total revenues were $1.8 million for the fourth quarter 2010, compared to $2.2 million for the fourth quarter 2009. Total revenues were $24.0 million for the year ended December 31, 2010, compared to $40.3 million for 2009. The decline in total revenues for the year was primarily due to the recognition of collaboration revenue in June 2009 from our terminated collaboration with Merck.

Total operating expenses were $17.4 million for the fourth quarter 2010, compared to $13.8 million for the fourth quarter 2009. Total operating expenses were $71.5 million for the year ended December 31, 2010, compared to $55.4 million for 2009. The increase in total operating expenses for the year was due to continued clinical and manufacturing activities to support HEPLISAV™. The Company expects total operating expenses in 2011 to be consistent with 2010.

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 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 2011 operating expenses. 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   Twelve Months Ended

                                   December 31,           December 31,

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

                                  2010       2009       2010       2009

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

Revenues:

  Collaboration revenue         $     371  $   1,455  $  19,535  $  35,534

  Grant revenue                     1,243        556      3,940      3,477

  Service and license revenue         152        178        475      1,307

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

Total revenues                      1,766      2,189     23,950     40,318



Operating expenses:

  Research and development         12,951      9,506     53,680     38,708

  General and administrative        4,185      4,052     16,879     15,745

  Amortization of intangible

   assets                             245        245        980        980

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

Total operating expenses           17,381     13,803     71,539     55,433

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



Loss from operations              (15,615)   (11,614)   (47,589)   (15,115)



Interest income                        32          4         85        178

Interest expense                     (425)        (4)    (1,654)      (124)

Other income (expense)                886        (26)    (8,150)       (66)

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



Net loss                         (15,122)   (11,640)   (57,308)   (15,127)



Consideration paid in excess of

 carrying value of the

 noncontrolling interest in

 SDI(1)                                --    (19,671)        --    (19,671)

Add: Losses attributed to

 noncontrolling interest in

 SDI                                   --      1,041         --      4,233

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



Net loss attributable to

 Dynavax                        $ (15,122) $ (30,270) $ (57,308) $ (30,565)

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



Basic and diluted net loss per

 share attributable to Dynavax

 common stockholders            $   (0.14) $   (0.73) $   (0.69) $   (0.76)

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



Shares used to compute basic

 and diluted net loss per share

 attributable to Dynavax common

 stockholders                     106,035     41,420     82,463     40,350

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





     (1) Symphony Dynamo, Inc.







                     DYNAVAX TECHNOLOGIES CORPORATION

          RECONCILIATION OF GAAP REVENUES TO PRO FORMA REVENUES

                              (In thousands)

                                (Unaudited)







                                          Three Months      Twelve Months

                                             Ended              Ended

                                           December 31,      December 31,

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

                                          2010     2009     2010     2009

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



GAAP total revenues                     $  1,766 $  2,189 $ 23,950 $ 40,318

ADD:

Collaboration funding for SDI

 programs                                     --      813       --    3,364

LESS:

Recognition of deferred revenue

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

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

Pro forma total revenues(1)             $  1,766 $  3,002 $ 13,950 $ 15,197

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





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

     revenues including collaboration funding provided for the SDI programs

     and excluding certain other items. The collaboration funding is the

     amount attributed to the noncontrolling interest in SDI in the

     Company's consolidated statement of operations that 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      Twelve Months

                                             Ended              Ended

                                           December 31,     December 31,

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

                                          2010     2009     2010     2009

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



GAAP total operating expenses           $ 17,381 $ 13,803 $ 71,539 $ 55,433

LESS:

Stock-based compensation expense             858      933    2,410    3,035

Amortization of intangible assets            245      245      980      980

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

Pro forma total operating expenses(2)   $ 16,278 $ 12,625 $ 68,149 $ 51,418

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





     (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)







                                                  December 31, December 31,

                                                      2010         2009

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

Assets

  Cash, cash equivalents and marketable

   securities                                     $     72,154 $     36,720

  Property and equipment, net                            6,404        7,997

  Goodwill                                               2,312        2,312

  Other intangible assets, net                             299        1,279

  Other assets                                           3,080        2,162

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

Total assets                                      $     84,249 $     50,470

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



Liabilities and stockholders' equity

  Accounts payable                                $      2,329 $      1,686

  Accrued liabilities                                   10,943        7,507

  Warrant liability to Holdings                             --        2,567

  Current portion of deferred revenue                    1,429        2,718

  Noncurrent portion of deferred revenue                 5,655       17,083

  Long-term note payable to Holdings                    10,939        9,342

  Long-term contingent liability to Holdings               843        3,040

  Other long-term liabilities                               --          151

  Total stockholders' equity                            52,111        6,376

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

Total liabilities and stockholders' equity        $     84,249 $     50,470

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





Contacts:

Jennifer Lew

Vice President, Finance

510-665-7217

Email Contact



Michael Ostrach

Vice President and Chief Business Officer

510-665-7257

Email Contact



Source: Dynavax Technologies

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