Dynavax Announces Strategic Restructuring to Focus on its Vaccine Business
- Company will explore strategic alternatives for its immuno-oncology programs
- Company will align its resources to focus on HEPLISAV-B commercialization
Eddie Gray, CEO, to retire
“Following a comprehensive analysis of our assets, strengths and opportunities, we have determined we should focus our resources on our approved vaccine, HEPLISAV-B, which, as the only two-dose hepatitis B vaccine, is gaining market share and is well positioned to become the new standard of care in the U.S,” said
Mr. Gray continued. “I am proud of the role our employees and collaborators have played to advance Dynavax’s immuno-oncology portfolio of innate immune TLR9, 7/8 agonists and antigen-enhanced immunotherapy. Encouraging clinical data to date highlight the importance of recruiting both innate and adaptive immune effectors to elicit an integrated anti-tumor response and to eradicate established tumors. Local induction of innate immunity holds tremendous promise and will likely be instrumental in advancing the treatment of cancer. The decision to seek strategic alternatives expands the pool of potential investment options to further development of these important assets.
“In addition, given this strategic decision to separate our two businesses, I’ve determined it’s the optimal time for me to transition from the company and so I will retire as CEO and as a Director of
The company’s board of directors has created an interim Office of the President and has appointed
“On behalf of the Board, I would like to thank Eddie for his dedication and many contributions to
Mr. Novack has been at
Mr. Spencer, who joined
The board will conduct a search for the company’s next CEO and will consider both internal and external candidates.
In connection with the decision to focus on the vaccine business the company is eliminating approximately 82 current positions, representing approximately 37% of its current U.S. workforce. The company is providing severance, continuation of employee benefits and outplacement assistance to the employees affected by the restructuring. The positions eliminated are primarily related to research and clinical development for the immuno-oncology programs and general and administrative functions. Restructuring costs and retirement costs related to compensation and benefit expenses as well as severance costs, are expected to be approximately
The workforce reduction is expected to reduce compensation and benefits cost by approximately
About Hepatitis B
Hepatitis B is a viral disease of the liver that can become chronic and lead to cirrhosis, liver cancer and death. The hepatitis B virus is 50 to 100 times more infectious than HIV,i and transmission is on the rise. There is no cure for hepatitis B, but effective vaccination can prevent the disease.
In adults, hepatitis B is spread through contact with infected blood and through unprotected sex with an infected person. The CDC recommends vaccination for those at high risk for infection due to their jobs, lifestyle, living situations and travel to certain areas.ii Because people with diabetes are particularly vulnerable to infection, the CDC recommends vaccination for adults age 19 to 59 with diabetes as soon as possible after their diagnosis, and for people age 60 and older with diabetes at their physician's discretion.iii Approximately 20 million U.S. adults have diabetes, and 1.5 million new cases of diabetes are diagnosed each year.iv
HEPLISAV-B is an adult hepatitis B vaccine that combines hepatitis B surface antigen with Dynavax’s proprietary Toll-like Receptor (TLR) 9 agonist to enhance the immune response.
For more information about HEPLISAV-B, visit http://heplisavb.com/.
Dynavax is a biopharmaceutical company focused on leveraging the power of the body's innate and adaptive immune responses through toll-like receptor (TLR) stimulation. Dynavax discovers, develops and commercializes novel vaccines. The Company launched its first commercial product, HEPLISAV-B® [Hepatitis B Vaccine (Recombinant), Adjuvanted], in
This press release contains "forward-looking" statements, including statements regarding the commercialization of HEPLISAV-B and exploring strategic alternatives for our immuno-oncology programs and anticipated costs and cost savings. 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 and when prescribers and other key decision-makers at potential purchasing entities will make the decision to switch to HEPLISAV-B, and the timing and quantity of actual purchases; our ability to successfully explore strategic alternatives for our immuno-oncology programs; and the actual amount of costs and cost savings resulting from the restructuring , as well as other risks detailed in the "Risk Factors" section of our Annual Report on Form 10-K for the fiscal year ended
i CDC. https://www.cdc.gov/hepatitis/hbv/bfaq.htm.
ii CDC. https://www.cdc.gov/hepatitis/hbv/hbvfaq.htm.
iii CDC. https://www.cdc.gov/diabetes/pubs/pdf/hepb_vaccination.pdf.
iv CDC. https://www.cdc.gov/diabetes/pdfs/data/statistics/national-diabetes-statistics-report.pdf.
Heather RoweVice President, Investor Relations & Corporate Communications firstname.lastname@example.org 510-665-7269
Source: Dynavax Technologies Corporation