UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549

FORM 8-K

CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(D) OF THE
SECURITIES AND EXCHANGE ACT OF 1934

Date of report (Date of earliest event reported): July 31, 2007

DYNAVAX TECHNOLOGIES
CORPORATION

(Exact name of registrant as specified in charter)

Delaware (State or other jurisdiction of incorporation)		000-50577 (Commission File Number)		33-0728374 (I.R.S. Employer Identification No.)

2929 Seventh Street, Suite 100
Berkeley, California 94710
(Address of principal executive offices and zip code)

Registrant’s telephone number, including area code: (510) 848-5100

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

o		Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
o		Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
o		Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
o		Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

 

Item 2.02. Results of Operations and Financial Condition.

On July 31, 2007, Dynavax Technologies Corporation issued a press release announcing its fiscal 2007 second quarter financial results. A copy of the press release is attached as Exhibit 99.1 to this current report and is incorporated herein by reference.

The information in this current report and in the accompanying exhibit shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that Section or Sections 11 and 12(a)(2) of the Securities Act of 1933, as amended. The information contained in this current report and in the accompanying exhibit shall not be incorporated by reference into any filing with the U.S. Securities and Exchange Commission made by Dynavax Technologies Corporation, whether made before or after the date hereof, regardless of any general incorporation language in such filing.

Item 9.01. Financial Statements and Exhibits.

(d) Exhibits.

Exhibit No.		Description
99.1		Press release, dated July 31, 2007 entitled “Dynavax Announces Second Quarter 2007 Financial Results.”

SIGNATURES

     Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, hereunto duly authorized.

INDEX TO EXHIBITS

Exhibit
Number		Description
99.1		Press release, dated July 31, 2007 entitled “Dynavax Announces Second Quarter 2007 Financial Results.”

Exhibit 99.1

		2929 Seventh Street, Suite 100
		Berkeley, CA 94710

Contact:
Dynavax Technologies Corporation
Deborah A. Smeltzer
VP Operations & Chief Financial Officer
Phone (510) 665-7222
Email: dsmeltzer@dynavax.com

DYNAVAX ANNOUNCES SECOND QUARTER 2007 FINANCIAL RESULTS

BERKELEY, Calif. — July 31, 2007 — Dynavax Technologies Corporation (Nasdaq: DVAX) today reported financial results for the second quarter and six months ended June 30, 2007.

As of June 30, 2007, Dynavax reported cash, cash equivalents, marketable securities and investments held by Symphony Dynamo, Inc. (SDI) totaling $82.6 million. This compares to $86.2 million at December 31, 2006.

“Both of Dynavax’s advanced product candidates, HEPLISAV for the prevention of hepatitis B and TOLAMBA for the treatment of ragweed allergy, have progressed. With the expected completion of the pivotal HEPLISAV trial in Canada and in Europe, we have an opportunity to submit a BLA in 2008. The recently announced project financing from Deerfield Management for TOLAMBA provides us with the tools to design and implement studies that could, if successful, lead to a BLA submission. Clearly, these are accomplishments that underscore the broadly enabling product potential of our TLR9 agonist approach,” said Dino Dina, MD, president and chief executive officer.

Total revenues were $1.8 million and $3.8 million for the three and six months ended June 30, 2007, respectively, compared to $0.5 million and $0.8 million for the same periods in 2006. The increase in revenues resulted from our collaboration with AstraZeneca, service and license revenue from customers of Dynavax Europe, and grant revenue primarily from the NIH. The reported revenues do not include collaboration funding from SDI. Including the collaboration funding from SDI, pro forma revenues were $4.9 million and $10.4 million, respectively, for the three and six months ended June 30, 2007, compared to $2.5 million and $2.8 million for the same periods in 2006.

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Dynavax 2Q 2007 Results
July 31, 2007
Page 2 of 6

Total operating expenses were $23.6 million and $41.7 million for the three and six months ended June 30, 2007, respectively, compared to $18.5 million and $27.7 million for the same periods in 2006. The increase in operating expenses resulted primarily from increased clinical development and licensing activities related to the Company’s product candidate HEPLISAV™, the expansion of the Company’s operations to include Dynavax Europe, and reimbursable expenses related to SDI programs. Operating expenses include a one-time $5 million license payment for the commercialization of HEPLISAV™, and non-cash charges for stock-based compensation, acquired in-process research and development and amortization of intangible assets resulting from the April 2006 acquisition of Rhein Biotech GmbH (Dynavax Europe). Excluding one-time and non-cash charges, pro forma operating expenses were $17.7 million and $34.7 million, respectively, for the three and six months ended June 30, 2007, compared to $13.4 million and $21.9 million for the same periods in 2006.

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.

Net loss for the second quarter 2007 was $17.7 million, or $0.45 per share, compared to a net loss of $15.3 million, or $0.50 per share, for the same period in 2006. Net loss for the six months of 2007 was $30.8 million, or $0.78 per share, compared to a net loss of $23.4 million, or $0.77 per share, for the same period in 2006. The increase in net loss was due primarily to increased clinical development expenditures on the Company’s product candidates and overall organizational growth. The increase in shares used to compute net loss per share resulted from the Company’s equity financing activities completed in the fourth quarter 2006.

About Dynavax

Dynavax Technologies Corporation discovers, develops, and intends to commercialize innovative TLR9 agonist-based products to treat and prevent infectious diseases, allergies, cancer, and chronic inflammatory diseases using versatile, proprietary approaches that alter immune system responses in highly specific ways. Our TLR9 agonists are based on immunostimulatory sequences, or ISS, which are short DNA sequences that enhance the ability of the immune system to fight disease and control chronic inflammation. Our product candidates include: HEPLISAV, a hepatitis B vaccine in Phase 3; TOLAMBA, a clinical ragweed allergy immunotherapy; a therapy for non-Hodgkin’s lymphoma (NHL) in Phase 2 and for metastatic colorectal cancer in Phase 1; and a therapy for hepatitis B also in Phase 1. Our preclinical asthma and COPD program is partnered with AstraZeneca. Our preclinical work on a vaccine for influenza is partially funded by the NIH. Our colorectal cancer trial and our preclinical hepatitis C therapeutic program are funded by Symphony Dynamo, Inc. While the NIH and SDI provide program support, Dynavax has retained rights to seek strategic partners for future development and commercialization. For more information, please visit http://www.dynavax.com.

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Dynavax 2Q 2007 Results
July 31, 2007
Page 3 of 6

This press release contains forward-looking statements that are subject to a number of risks and uncertainties, including statements about planned clinical trials and BLA submissions for our product candidates HEPLISAV and TOLAMBA and our financial 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 difficulties or delays in development and achieving our related timelines; achieving the objectives of our collaborative and licensing agreements such as our SDI and AstraZeneca arrangements; and obtaining regulatory approval for our products; the scope and validity of patent protection for our products; possible claims against us based on the patent rights of others; our ability to obtain additional financing to support our operations; and other risks detailed in the “Risk Factors” section of our Quarterly Report on Form 10-Q. We undertake no obligation to revise or update information herein to reflect events or circumstances in the future, even if new information becomes available.

— Tables to follow —

Dynavax 2Q 2007 Results
July 31, 2007
Page 4 of 6

DYNAVAX TECHNOLOGIES CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share amounts)
(Unaudited)

		Three Months Ended								Six Months Ended
		June 30,								June 30,
		2007				2006				2007				2006
Revenues:
Collaboration revenue		$	752			$	—			$	1,499			$	—
Service and license revenue			461				224				570				224
Grant revenue			587				305				1,715				593
Total revenues			1,800				529				3,784				817
Operating expenses:
Research and development (2)			19,164				10,762				32,796				17,354
General and administrative (3)			4,206				3,380				8,386				5,983
Acquired in-process research and development			—				4,180				—				4,180
Amortization of intangible assets			252				196				503				196
Total operating expenses (1)			23,622				18,518				41,685				27,713
Loss from operations			(21,822	)			(17,989	)			(37,901	)			(26,896	)
Interest and other income, net			1,081				685				2,054				1,420
Loss including noncontrolling interest in Symphony Dynamo, Inc			(20,741	)			(17,304	)			(35,847	)			(25,476	)
Amount attributed to noncontrolling interest in Symphony Dynamo, Inc			3,037				2,031				5,053				2,031
Net loss		$	(17,704	)		$	(15,273	)		$	(30,794	)		$	(23,445	)
Basic and diluted net loss per share		$	(0.45	)		$	(0.50	)		$	(0.78	)		$	(0.77	)
Shares used to compute basic and diluted net loss per share			39,741				30,536				39,734				30,524

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Dynavax 2Q 2007 Results
July 31, 2007
Page 5 of 6

DYNAVAX TECHNOLOGIES CORPORATION
RECONCILIATION OF GAAP REVENUES TO PRO FORMA REVENUES
(In thousands)
(Unaudited)

		Three Months Ended								Six Months Ended
		June 30,								June 30,
		2007				2006				2007				2006
GAAP revenues		$	1,800			$	529			$	3,784			$	817
ADD:
Collaboration funding incurred under SDI programs			3,136				1,998				6,632				1,998
Pro forma revenues (1)		$	4,936			$	2,527			$	10,416			$	2,815

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,
		2007				2006				2007				2006
GAAP operating expenses		$	23,622			$	18,518			$	41,685			$	27,713
LESS:
Licensing fee			5,000				—				5,000				—
Stock-based compensation expense			698				730				1,497				1,396
Acquired in-process research and development			—				4,180				—				4,180
Amortization of intangible assets			252				196				503				196
Pro forma operating expenses (2)		$	17,681			$	13,412			$	34,685			$	21,941

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Dynavax 2Q 2007 Results
July 31, 2007
Page 6 of 6

DYNAVAX TECHNOLOGIES CORPORATION
SELECTED BALANCE SHEET DATA
(In thousands)

		June 30,				December 31,
		2007				2006
Assets		(unaudited)
Cash and cash equivalents and marketable securities (1)		$	82,578			$	86,194
Property and equipment, net			6,040				5,200
Goodwill			2,312				2,312
Other intangible assets, net			3,879				4,382
Other assets			3,673				4,802
Total assets		$	98,482			$	102,890
Liabilities, noncontrolling interest and stockholders’ equity
Current liabilities		$	13,589			$	13,701
Noncurrent portion of deferred revenue			10,000				10,000
Other long-term liabilities			9,531				117
Noncontrolling interest in Symphony Dynamo, Inc			17,514				2,016
Stockholders’ equity			47,848				77,056
Total liabilities, noncontrolling interest and stockholders’ equity		$	98,482			$	102,890

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