Dynavax Technologies Corporation
Jul 20, 2011

Dynavax Reports Second Quarter 2011 Financial Results

BERKELEY, CA -- (MARKET WIRE) -- 07/20/11 -- Dynavax Technologies Corporation (NASDAQ: DVAX) today reported financial results for the second quarter ended June 30, 2011. Cash, cash equivalents and marketable securities were $61.7 million at June 30, 2011, compared to $53.2 million at March 31, 2011 and $72.2 million at December 31, 2010. During the second quarter, the Company raised approximately $18.7 million through its At-the-Market common stock purchase agreement with Aspire Capital and received a $6 million milestone payment from GlaxoSmithKline from the initiation of a Phase 1 trial in the partnered lupus program.

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.

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                      DYNAVAX TECHNOLOGIES CORPORATION

                    CONSOLIDATED STATEMENTS OF OPERATIONS

                  (In thousands, except per share amounts)

                                 (Unaudited)



                                  Three Months Ended     Six Months Ended

                                       June 30,              June 30,

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

                                    2011       2010       2011       2010

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

Revenues:

  Collaboration revenue          $   6,363  $   1,341  $   6,729  $   8,762

  Grant revenue                        890        617      1,779      1,479

  Service and license revenue           16        233        505        294

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

Total revenues                       7,269      2,191      9,013     10,535



Operating expenses:

  Research and development          13,257     14,045     27,929     26,525

  General and administrative         4,054      4,173      8,808      8,743

  Amortization of intangible

   assets                               54        245        299        490

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

Total operating expenses            17,365     18,463     37,036     35,758

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



Loss from operations               (10,096)   (16,272)   (28,023)   (25,223)



Interest income                         23         39         56         41

Interest expense                      (487)      (431)      (977)      (830)

Other expense                          (75)   (11,340)      (157)   (11,176)

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



Net loss                         $ (10,635) $ (28,004) $ (29,101) $ (37,188)

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



Basic and diluted net loss per

 share                           $   (0.09) $   (0.34) $   (0.25) $   (0.54)

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



Shares used to compute basic and

 diluted net loss per share        117,864     82,012    116,801     68,264

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









                      DYNAVAX TECHNOLOGIES CORPORATION

  RECONCILIATION OF GAAP OPERATING EXPENSES TO PRO FORMA OPERATING EXPENSES

                               (In thousands)

                                 (Unaudited)



                                   Three Months Ended     Six Months Ended

                                        June 30,              June 30,

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

                                    2011       2010       2011       2010

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



GAAP operating expenses          $   17,365 $   18,463 $   37,036 $   35,758

LESS:

Stock-based compensation expense      1,167        425      2,647        966

Amortization of intangible

 assets                                  54        245        299        490

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

Pro forma operating expenses(1)  $   16,144 $   17,793 $   34,090 $   34,302

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



(1) 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)



                                                    June 30,    December 31,

                                                      2011          2010

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

Assets

  Cash and cash equivalents and marketable

   securities                                    $      61,724 $      72,154

  Property and equipment, net                            6,570         6,404

  Goodwill                                               2,312         2,312

  Other intangible assets, net                              --           299

  Other assets                                           3,824         3,080

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

Total assets                                     $      74,430 $      84,249

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



Liabilities and stockholders'equity

  Accounts payable                               $       1,742 $       2,329

  Accrued liabilities                                    7,755        10,943

  Current portion of deferred revenue                    1,429         1,429

  Noncurrent portion of deferred revenue                 4,940         5,655

  Long-term note payable to Holdings                    11,874        10,939

  Long-term contingent liability to Holdings               860           843

  Total stockholders' equity                            45,830        52,111

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

Total liabilities and stockholders' equity       $      74,430 $      84,249

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

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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