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Document and Entity Information - shares	9 Months Ended
Document and Entity Information - shares	Sep. 30, 2012	Oct. 26, 2012
Document Information [Line Items]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Sep. 30, 2012
Document Fiscal Year Focus	2012
Document Fiscal Period Focus	Q3
Trading Symbol	DVAX
Entity Registrant Name	DYNAVAX TECHNOLOGIES CORP
Entity Central Index Key	0001029142
Current Fiscal Year End Date	--12-31
Entity Filer Category	Accelerated Filer
Entity Common Stock, Shares Outstanding		178,707,300

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Sep. 30, 2012	Dec. 31, 2011
Current assets:
Cash and cash equivalents	$ 24,650	$ 31,941
Marketable securities available-for-sale	123,629	82,020
Accounts receivable	3,685	9,527
Prepaid expenses and other current assets	2,419	1,130
Total current assets	154,383	124,618
Property and equipment, net	6,948	6,163
Goodwill	2,408	2,312
Restricted cash	645	647
Other assets	438	362
Total assets	164,822	134,102
Current liabilities:
Accounts payable	1,578	2,040
Accrued liabilities	9,163	8,159
Deferred revenues	4,172	4,210
Note payable to Symphony Dynamo Holdings LLC ("Holdings")	14,452	12,810
Total current liabilities	29,365	27,219
Deferred revenues, noncurrent	4,775	6,386
Other long-term liabilities	624	617
Total liabilities	34,764	34,222
Commitments and contingencies (Note 5)
Stockholders' equity:
Preferred stock: $0.001 par value; 5,000 shares authorized and no shares issued and outstanding at September 30, 2012 and December 31, 2011
Common stock: $0.001 par value; 250,000 shares authorized; 178,270 and 154,626 shares issued and outstanding at September 30, 2012 and December 31, 2011, respectively	178	155
Additional paid-in capital	545,767	466,276
Accumulated other comprehensive loss:
Unrealized gain (loss) on marketable securities available-for-sale	29	(3)
Cumulative translation adjustment	(968)	(1,006)
Total accumulated other comprehensive loss	(939)	(1,009)
Accumulated deficit	(414,948)	(365,542)
Total stockholders' equity	130,058	99,880
Total liabilities and stockholders' equity	$ 164,822	$ 134,102

Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares shares in Thousands	Sep. 30, 2012	Dec. 31, 2011
Preferred stock, par value	$ 0.001	$ 0.001
Preferred stock, shares authorized	5,000	5,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value	$ 0.001	$ 0.001
Common stock, shares authorized	250,000	250,000
Common stock, shares issued	178,270	154,626
Common stock, shares outstanding	178,270	154,626

Condensed Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2012	Sep. 30, 2011	Sep. 30, 2012	Sep. 30, 2011
Revenues:
Collaboration revenue	$ 1,050	$ 369	$ 3,602	$ 7,098
Grant revenue	1,219	658	3,188	2,437
Service and license revenue	605	147	1,118	652
Total revenues	2,874	1,174	7,908	10,187
Operating expenses:
Research and development	12,850	11,777	36,631	39,706
General and administrative	7,121	4,217	18,871	13,025
Amortization of intangible assets				299
Total operating expenses	19,971	15,994	55,502	53,030
Loss from operations	(17,097)	(14,820)	(47,594)	(42,843)
Interest income	91	18	208	74
Interest expense	(589)	(485)	(1,765)	(1,462)
Other income (expense)	(196)	58	(255)	(99)
Net loss	$ (17,791)	$ (15,229)	$ (49,406)	$ (44,330)
Basic and diluted net loss per share	$ (0.10)	$ (0.12)	$ (0.30)	$ (0.37)
Shares used to compute basic and diluted net loss per share	177,870	124,069	167,039	119,244

Condensed Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2012	Sep. 30, 2011	Sep. 30, 2012	Sep. 30, 2011
Net loss	$ (17,791)	$ (15,229)	$ (49,406)	$ (44,330)
Other comprehensive income (loss):
Unrealized gain (loss) on marketable securities available-for-sale	59	(8)	32	11
Cumulative translation adjustment	249	(438)	38	117
Total other comprehensive income (loss)	308	(446)	70	128
Total comprehensive loss	$ (17,483)	$ (15,675)	$ (49,336)	$ (44,202)

- Definition

The change in equity [net assets] of a business enterprise during a period from transactions and other events and circumstances from non-owner sources which are attributable to the reporting entity. It includes all changes in equity during a period except those resulting from investments by owners and distributions to owners, but excludes any and all transactions which are directly or indirectly attributable to that ownership interest in subsidiary equity which is not attributable to the parent.

+ References + Details

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

+ References

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+ Details

- Definition

Net of tax amount of unrealized holding gain (loss) before reclassification adjustments and transfers on available-for-sale securities.

+ References

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+ Details

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2012	Sep. 30, 2011
Operating activities
Net loss	$ (49,406)	$ (44,330)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	898	1,009
Amortization of intangible assets		299
Loss (gain) on disposal of assets	6	(8)
Non-cash interest associated with the note payable to Holdings	1,642	1,403
Fair value adjustment of the warrant and contingent liabilities to Holdings		34
Accretion of discounts and amortization of premiums of marketable securities	970	895
Stock-based compensation expense	6,294	3,934
Changes in operating assets and liabilities:
Accounts receivable	5,842	218
Prepaid expenses and other current assets	(1,289)	(33)
Restricted cash and other assets	(74)	(164)
Accounts payable	(462)	(1,016)
Accrued liabilities and other long term liabilities	1,011	(2,997)
Deferred revenues	(1,649)	(1,072)
Net cash used in operating activities	(36,217)	(41,828)
Investing activities
Purchases of marketable securities	(169,634)	(38,007)
Proceeds from maturities of marketable securities	127,085	52,675
Purchases of property and equipment, net	(1,727)	(564)
Net cash (used in) provided by investing activities	(44,276)	14,104
Financing activities
Proceeds from offering of common stock, net of issuance costs	69,619	24,078
Proceeds from exercise of warrants	1,505	7
Proceeds from employee stock purchase plan	307	132
Proceeds from exercise of stock options	1,789	169
Net cash provided by financing activities	73,220	24,386
Effect of exchange rate on cash and cash equivalents	(18)	(43)
Net decrease in cash and cash equivalents	(7,291)	(3,381)
Cash and cash equivalents at beginning of period	31,941	22,453
Cash and cash equivalents at end of period	24,650	19,072
Supplemental disclosure of cash flow information
Disposal of fully depreciated property and equipment	29	845
Net change in unrealized gain on marketable securities	$ 32	$ 11

Organization and Summary of Significant Accounting Policies

9 Months Ended

Sep. 30, 2012

Organization and Summary of Significant Accounting Policies

1. Organization and Summary of Significant Accounting Policies

Dynavax Technologies Corporation (“we,” “our,” “us,” “Dynavax” or the “Company”), a clinical-stage biopharmaceutical company, discovers and develops novel products to prevent and treat infectious and inflammatory diseases. Our lead product candidate is HEPLISAV^TM, a Phase 3 investigational adult hepatitis B vaccine designed to provide higher and earlier protection with fewer doses than currently licensed vaccines. A U.S. Biologics License Application (“BLA”) for HEPLISAV has been accepted for review by the U.S. Food and Drug Administration. A Marketing Authorization Application (“MAA”) has been accepted for review by the European Medicines Agency (“EMA”).

Our pipeline of product candidates includes: HEPLISAV, our autoimmune program partnered with GlaxoSmithKline (“GSK”) and our therapy for asthma partnered with AstraZeneca AB (“AstraZeneca”). We compete with pharmaceutical companies, biotechnology companies, academic institutions and research organizations in developing therapies to prevent or treat infectious and inflammatory diseases. Our product candidates are based on the use of immunostimulatory sequences (“ISS”) and immunoregulatory sequences. We were incorporated in California in August 1996 under the name Double Helix Corporation, and we changed our name to Dynavax Technologies Corporation in September 1996. We reincorporated in Delaware in 2000.

Basis of Presentation

Our accompanying unaudited condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information and pursuant to the instructions to Form 10-Q and Article 10 of Regulation S-X. In our opinion, these unaudited condensed consolidated financial statements include all adjustments, consisting only of normal recurring adjustments, which we consider necessary to fairly state our financial position and the results of our operations and cash flows. Interim-period results are not necessarily indicative of results of operations or cash flows for a full-year period or any other interim-period. The condensed consolidated balance sheet at December 31, 2011, has been derived from audited financial statements at that date, but excludes disclosures required by GAAP for complete financial statements.

The unaudited condensed consolidated financial statements and these notes should be read in conjunction with our Annual Report on Form 10-K for the year ended December 31, 2011, as filed with the Securities and Exchange Commission (the “SEC”).

The unaudited condensed consolidated financial statements include the accounts of Dynavax and our wholly-owned subsidiaries, Rhein Biotech GmbH (“Rhein” or “Dynavax Europe”) and Dynavax International, B.V. All significant intercompany accounts and transactions have been eliminated. We operate in one business segment, which is the discovery and development of biopharmaceutical products.

Liquidity and Financial Condition

We have incurred significant operating losses and negative cash flows from operations since our inception. As of September 30, 2012, we had cash, cash equivalents and marketable securities of $148.3 million. We currently estimate that we have sufficient cash resources to meet our anticipated cash needs through at least the next 12 months based on cash, cash equivalents and marketable securities on hand as of September 30, 2012, as well as anticipated revenues and funding from existing agreements.

If we are unable to generate significant revenues from HEPLISAV, if it is approved, and to continue development of our product candidates, we may need to raise additional funds. This may occur through strategic alliance and licensing arrangements and/or future public or private financings. Sufficient additional funding may not be available on acceptable terms, or at all. Additional equity financings, if completed, could result in significant dilution or otherwise adversely affect the rights of existing shareholders. If adequate funds are not available in the future, we may need to delay, reduce the scope of or put on hold the HEPLISAV program or our other development programs while we seek strategic alternatives.

Use of Estimates

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the unaudited condensed consolidated financial statements and accompanying notes. Actual results may differ from these estimates.

Summary of Significant Accounting Policies

We believe that there have been no significant changes in our critical accounting policies during the nine months ended September 30, 2012, as compared with those disclosed in our Annual Report on Form 10-K for the year ended December 31, 2011. Below we describe our accounting policy related to revenue recognition.

Revenue Recognition

Our revenues are derived from collaborative and service agreements as well as grants. We enter into license and manufacturing agreements and collaborative research and development arrangements with pharmaceutical and biotechnology partners that may include multiple deliverables. Our arrangements may include one or more of the following elements: upfront license payments, cost reimbursement for the performance of research and development activities, milestone payments, other contingent payments, contract manufacturing service fees, royalties and license fees. Each deliverable in the arrangement is evaluated to determine whether it meets the criteria to be accounted for as a separate unit of accounting or whether it should be combined with other deliverables. We recognize revenue when there is persuasive evidence that an arrangement exists, delivery has occurred or services have been rendered, the price is fixed or determinable and collectability is reasonably assured.

On January 1, 2011, we adopted on a prospective basis Financial Accounting Standards Board (“FASB”) Accounting Standards Update (“ASU”) 2009-13, Multiple-Deliverable Revenue Arrangements, which amends the criteria related to identifying separate units of accounting and provides guidance on whether multiple deliverables exist, how an arrangement should be separated and the consideration allocated.

Non-refundable upfront fees received for license and collaborative agreements entered into before January 1, 2011 and other payments under collaboration agreements where we have continuing performance obligations are deferred and recognized over our expected performance period. Revenue is recognized on a ratable basis, unless we determine that another methodology is more appropriate, through the date at which our performance obligations are completed. Management makes its best estimate of the period over which we expect to fulfill our performance obligations, which may include clinical development activities. Given the uncertainties of research and development collaborations, significant judgment is required to determine the duration of the performance period. We recognize cost reimbursement revenue under collaborative agreements as the related research and development costs are incurred, as provided for under the terms of these agreements.

On January 1, 2011, we elected to prospectively adopt the milestone method as described in FASB ASU 2010-17, Milestone Method of Revenue Recognition. Under the milestone method, contingent consideration received from the achievement of a substantive milestone is recognized in its entirety in the period in which the milestone is achieved. A milestone is defined as an event having all of the following characteristics: (1) there is substantive uncertainty at the date the arrangement is entered into that the event will be achieved, (2) the event can only be achieved based in whole or in part on either the entity’s performance or a specific outcome resulting from the entity’s performance and (3) if achieved, the event would result in additional payments being due to the entity.

Our license and collaboration agreements with our partners provide for payments to be paid to us upon the achievement of development milestones. Given the challenges inherent in developing biologic products, there is substantial uncertainty whether any such milestones would be achieved at the time we enter into these agreements. We evaluate whether the development milestones meet the criteria to be considered substantive. The conditions include: (1) the development work is contingent upon either of the following: (a) the vendor’s performance to achieve the milestone or (b) the enhancement of the value of the deliverable item or items as a result of a specific outcome resulting from the vendor’s performance to achieve the milestone; (2) it relates solely to past performance and; (3) it is reasonable relative to all the deliverable and payment terms within the arrangement. As a result of our analysis, we consider our development milestones to be substantive and, accordingly, we expect to recognize as revenue future payments received from such milestones as we achieve each milestone.

Milestone payments that are contingent upon the achievement of substantive at-risk performance criteria are recognized in full upon achievement of those milestone events in accordance with the terms of the agreement and assuming all other revenue recognition criteria are met. All revenue recognized to date under our collaborative agreements has been nonrefundable.

Our license and collaboration agreements with certain partners also provide for contingent payments to be paid to us based solely upon the performance of our partner. For such contingent payments we expect to recognize the payments as revenue upon receipt, provided that collection is reasonably assured and the other revenue recognition criteria have been satisfied.

Revenues from manufacturing services are recognized upon meeting the criteria for substantial performance and acceptance by the customer.

Revenue from royalty payments is contingent on future sales activities by our licensees. As a result, we recognize royalty revenue when reported by our licensees and when collection is reasonably assured.

Revenue from government and private agency grants is recognized as the related research expenses are incurred and to the extent that funding is approved. Additionally, we recognize revenue based on the facilities and administrative cost rate reimbursable per the terms of the grant awards.

Recent Accounting Pronouncements

Accounting Standards Update 2011-04

In May 2011, the FASB issued ASU No. 2011-04, Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and IFRS. This ASU is the result of joint efforts by the FASB and International Accounting Standards Board to develop a single, converged fair value framework. While this ASU is largely consistent with existing fair value measurement principles in GAAP, it expands Accounting Standards Codification (“ASC”) Topic 820, Fair Value Measurement (“ASC 820”) existing disclosure requirements for fair value measurements and makes other amendments. Many of these amendments were made to eliminate unnecessary wording differences between GAAP and International Financial Reporting Standards (“IFRS”), which could change how fair value measurement guidance in ASC 820 is applied. We adopted the disclosure requirements in the quarter ended March 31, 2012, and included the required disclosure in Note 2 “Fair Value Measurements.”

Accounting Standards Update 2011-05

In June 2011, the FASB issued ASU No. 2011-05, Presentation of Comprehensive Income. This ASU gives an entity the option to present the total of comprehensive income, the components of net income and the components of other comprehensive income either in a single continuous statement of comprehensive income or in two separate but consecutive statements. ASU No. 2011-05 was effective on a retrospective basis for us on January 1, 2012. We adopted this presentation of comprehensive income in the quarter ended March 31, 2012.

- Definition

The entire disclosure for the organization, consolidation and basis of presentation of financial statements disclosure, and significant accounting policies of the reporting entity. May be provided in more than one note to the financial statements, as long as users are provided with an understanding of (1) the significant judgments and assumptions made by an enterprise in determining whether it must consolidate a VIE and/or disclose information about its involvement with a VIE, (2) the nature of restrictions on a consolidated VIE's assets reported by an enterprise in its statement of financial position, including the carrying amounts of such assets, (3) the nature of, and changes in, the risks associated with an enterprise's involvement with the VIE, and (4) how an enterprise's involvement with the VIE affects the enterprise's financial position, financial performance, and cash flows. Describes procedure if disclosures are provided in more than one note to the financial statements.

+ References + Details

Fair Value Measurements

9 Months Ended

Sep. 30, 2012

Fair Value Measurements

2. Fair Value Measurements

ASC 820 defines fair value, establishes a framework for measuring fair value under generally accepted accounting principles and enhances disclosures about fair value measurements. Fair value is defined under ASC 820 as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value under ASC 820 must maximize the use of observable inputs and minimize the use of unobservable inputs. The standard describes a fair value hierarchy based on three levels of inputs, of which the first two are considered observable and the last unobservable, that may be used to measure fair value as follows:

•

Level 1 - Quoted prices in active markets for identical assets or liabilities;

•

Level 2 - Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities; and

•

Level 3 - Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities.

Recurring Fair Value Measurements

The following table represents the fair value hierarchy for our financial assets measured at fair value on a recurring basis as of September 30, 2012 and December 31, 2011 (in thousands):


	Level 1		Level 2		Level 3		Total
September 30, 2012:
Money market funds	$	18,862	$	—	$	—	$	18,862
U.S. government agency securities		—		102,174		—		102,174
Corporate debt securities, secured by U.S. government		—		24,578		—		24,578

Total	$	18,862	$	126,752	$	—	$	145,614

December 31, 2011:
Money market funds	$	17,171	$	—	$	—	$	17,171
U.S. Government agency securities		—		35,920		—		35,920
Corporate debt securities, secured by U.S. government		—		58,580		—		58,580

Total	$	17,171	$	94,500	$	—	$	111,671

Money market funds are highly liquid investments and are actively traded. The pricing information on these investment instruments is readily available and can be independently validated as of the measurement date. This approach results in the classification of these securities as Level 1 of the fair value hierarchy.

Marketable securities primarily comprise U.S. government sponsored and corporate debt securities which are measured at fair value using Level 2 inputs. We review trading activity and pricing for these investments as of the measurement date. When sufficient quoted pricing for identical securities is not available, we use market pricing and other observable market inputs for similar securities obtained from various third party data providers. These inputs represent quoted prices for similar assets in active markets or have been derived from observable market data. This approach results in the classification of these securities as Level 2 of the fair value hierarchy.

When determining if there are any “other-than-temporary” impairments on our investments, we evaluate: (1) whether the investment has been in a continuous unrealized loss position for over 12 months, (2) the duration to maturity of our investments, (3) our intention to hold the investments to maturity and if it is not more likely than not that we will be required to sell the investments before recovery of the amortized cost bases, (4) the credit rating of each investment and (5) the type of investments made. Through September 30, 2012, we have not recognized any “other-than-temporary” losses on our investments. There were no sales of marketable securities during the nine months ended September 30, 2012 and 2011.

Liabilities for Which Fair Value Is Disclosed

In connection with the acquisition of all of the outstanding equity of Symphony Dynamo, Inc. in December 2009, we issued to Symphony Dynamo Holdings LLC a note in the principal amount of $15 million, due December 31, 2012, payable in cash, our common stock or a combination thereof at our discretion. As of September 30, 2012, the carrying value and estimated fair value of the note payable was $14.5 million and this balance was classified as a short term liability. We estimated the fair value of the note using a net present value model with a discount rate of 17%. This approach resulted in the classification of the note as Level 3 in the fair value hierarchy. Imputed interest is recorded as interest expense over the term of the loan using the interest rate method. We recorded interest expense of $0.5 million and $1.6 million for the three and nine months ended September 30, 2012, respectively, and $0.5 million and $1.4 million for the three and nine months ended September 30, 2011, respectively. If we elect to pay all or a portion of the note in shares of our common stock, the number of shares issued will be equal to the portion of the outstanding principal amount of the note to be repaid using our common stock, divided by the average closing price of our common stock for the 30 trading days immediately preceding (but not including) the second trading day before the date of such payment multiplied by 1.15.

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 820
-SubTopic 10
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=7578670&loc=d3e19207-110258

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 825
-SubTopic 10
-Section 50
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-URI http://asc.fasb.org/extlink&oid=6957238&loc=d3e14172-108612

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
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Reference 4: http://www.xbrl.org/2003/role/presentationRef
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Reference 5: http://www.xbrl.org/2003/role/presentationRef
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Reference 6: http://www.xbrl.org/2003/role/presentationRef
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Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 107
-Paragraph 15B
-Subparagraph a, b
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
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-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
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-Paragraph 17-22, 27, 28
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 10: http://www.xbrl.org/2003/role/presentationRef
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-Name Statement of Financial Accounting Standard (FAS)
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-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 11: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
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-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 12: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
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-Paragraph 32, 33, 34
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 13: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 107
-Paragraph 3, 10, 14, 15
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

+ Details

Cash, cash equivalents and marketable securities

9 Months Ended

Sep. 30, 2012

Cash, cash equivalents and marketable securities

3. Cash, cash equivalents and marketable securities

The following is a summary of cash, cash equivalents and available-for-sale marketable securities as of September 30, 2012 and December 31, 2011 (in thousands):


	Amortized Cost		Unrealized Gains		Unrealized Losses			Estimated Fair Value
September 30, 2012:
Cash and cash equivalents:
Cash	$	2,665	$	—	$	—		$	2,665
Money market funds		18,862		—		—			18,862
U.S. government agency securities		870		—		—			870
Corporate debt securities		2,253		—		—			2,253

Total cash and cash equivalents		24,650		—		—			24,650

Marketable securities available-for-sale:
U.S. government agency securities		101,274		34		(4	)		101,304
Corporate debt securities		22,326		—		(1	)		22,325

Total marketable securities available-for-sale		123,600		34		(5	)		123,629

Total cash, cash equivalents and marketable securities	$	148,250	$	34	$	(5	)	$	148,279

December 31, 2011:
Cash and cash equivalents:
Cash	$	2,290	$	—	$	—		$	2,290
Money market funds		17,171		—		—			17,171
U.S. government agency securities		9,438		—		—			9,438
Corporate debt securities		3,044		—		(2	)		3,042

Total cash and cash equivalents		31,943		—		(2	)		31,941

Marketable securities available-for-sale:
U.S. Government agency securities		26,488		—		(6	)		26,482
Corporate debt securities		55,533		9		(4	)		55,538

Total marketable securities available-for-sale		82,021		9		(10	)		82,020

Total cash, cash equivalents and marketable securities	$	113,964	$	9	$	(12	)	$	113,961

The following is a summary of the amortized cost and estimated fair value of available-for-sale securities at September 30, 2012, by contractual maturity (in thousands):


	September 30, 2012
	Amortized Cost		Estimated Fair Value
Mature in one year or less	$	76,342	$	76,360
Mature after one year through two years		47,258		47,269

	$	123,600	$	123,629

There were no realized gains or losses from the sale of marketable securities in the three and nine months ended September 30, 2012 and 2011. All of our investments are classified as short-term and available-for-sale, as we may not hold our investments until maturity. The corporate debt securities held as of September 30, 2012 and December 31, 2011, were secured by the Federal Deposit Insurance Corporation through the Temporary Liquidity Guarantee Program.

Public Financing	9 Months Ended
Public Financing	Sep. 30, 2012
Public Financing	4. Public Financing On May 9, 2012, we sold 17,500,000 shares of our common stock at a price of $4.25 per share in an underwritten public offering. The sale of common stock resulted in aggregate net proceeds to us of approximately $69.6 million after deducting offering expenses.

Commitments and Contingencies

9 Months Ended

Sep. 30, 2012

Commitments and Contingencies

5. Commitments and Contingencies

We lease our facilities in Berkeley, California (“Berkeley Lease”) and Düsseldorf, Germany (“Düsseldorf Lease”) under operating leases that expire in September 2017 and March 2023, respectively. The Berkeley Lease provides for periods of escalating rent. The total cash payments over the life of the lease are divided by the total number of months in the lease period and the average rent is charged to expense each month during the lease period. We entered into sublease agreements under the Düsseldorf Lease for a certain portion of the leased space. The sublease income is offset against our rent expense. Total net rent expense related to our operating leases for the three months ended September 30, 2012 and 2011, was $0.4 million and $0.4 million, respectively. Total net rent expense related to our operating leases for the nine months ended September 30, 2012 and 2011, was $1.3 million and $1.3 million, respectively. Deferred rent was $0.6 million as of September 30, 2012 and December 31, 2011.

Future minimum payments under the non-cancelable portion of our operating leases at September 30, 2012, excluding payments from sublease agreements, are as follows (in thousands):


Year ending December 31,
2012 (remaining three months)	$	450
2013		1,799
2014		1,763
2015		1,799
2016		1,836
Thereafter		4,417

Total	$	12,064

In addition to the non-cancelable commitments included above, we have entered into contractual arrangements that obligate us to make payments to the contractual counterparties upon the occurrence of future events. In addition, in the normal course of operations, we have entered into license and other agreements and intend to continue to seek additional rights relating to compounds or technologies in connection with our discovery, manufacturing and development programs. Under the terms of the agreements, we may be required to pay future up-front fees, milestones, royalties on net sales of products originating from the licensed technologies, if any, or other payments contingent upon the occurrence of future events that cannot reasonably be estimated.

We rely on research institutions, contract research organizations, clinical investigators as well as clinical and commercial material manufacturers of our product candidates. As of September 30, 2012, under the terms of our agreements, we are obligated to make future payments as services are provided of approximately $10.5 million through 2015. These agreements are terminable by us upon written notice. Generally, we are liable only for actual effort expended by the organizations at any point in time during the contract through the notice period.

Under the terms of our exclusive license agreements with The Regents of the University of California, as amended, for certain technology and related patent rights and materials, we pay annual license or maintenance fees and will be required to pay milestones and royalties on net sales, if any, of certain products originating from the licensed technologies.

- Definition

The entire disclosure for commitments and contingencies.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 825
-SubTopic 20
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=6449706&loc=d3e16207-108621

Reference 2: http://www.xbrl.org/2003/role/presentationRef
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Reference 3: http://www.xbrl.org/2003/role/presentationRef
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Reference 4: http://www.xbrl.org/2003/role/presentationRef
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Reference 5: http://www.xbrl.org/2003/role/presentationRef
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-URI http://asc.fasb.org/extlink&oid=6394976&loc=d3e25287-109308

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name FASB Interpretation (FIN)
-Number 14
-Paragraph 3
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 5
-Paragraph 9, 10, 11, 12
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

+ Details

Collaborative Research and Development Agreements

9 Months Ended

Sep. 30, 2012

Collaborative Research and Development Agreements

6. Collaborative Research and Development Agreements

GlaxoSmithKline

In December 2008, we entered into a worldwide strategic alliance with GSK to discover, develop and commercialize toll-like receptor (“TLR”) inhibitors. We received an initial payment of $10 million and agreed to conduct research and early clinical development in up to four programs. In 2011, we earned $15 million in milestone payments related to the initiation of Phase 1 and proof-of-mechanism clinical trials of DV1179 in systemic lupus erythematosus patients and expansion of our collaboration with GSK to develop a TLR8 inhibitor. We are eligible to receive future development milestone payments which we have determined to be substantive milestones. GSK can exercise its exclusive option to license each program upon achievement of certain events and we are eligible to receive contingent option exercise payments. If GSK exercises an option, GSK would carry out further development and commercialization of the corresponding products. We are eligible to receive tiered, up to double-digit royalties on sales of any products originating from the collaboration and have retained an option to co-develop and co-promote one product under this agreement.

Revenue from the initial payment from GSK was deferred and is being recognized over the expected period of performance under the agreement which is estimated to be seven years. For the three months ended September 30, 2012 and 2011, we recognized revenue of $0.4 million in each period, respectively, related to the initial payment. For the nine months ended September 30, 2012 and 2011, we recognized revenue of $1.1 million in each period, respectively, related to the initial payment. As of September 30, 2012 and December 31, 2011, deferred revenue relating to the initial payment was $4.6 million and $5.7 million, respectively. For the three and nine months ended September 30, 2011, we recorded $6 million in revenue from a milestone payment we received from GSK.

Absent early termination, the agreement will expire when all of GSK’s payment obligations expire. Either party may terminate the agreement early upon written notice if the other party commits an uncured material breach of the agreement. Either party may terminate the agreement in the event of insolvency of the other party. GSK also has the option to terminate the agreement without cause upon prior written notice within a specified window of time dependent upon the stage of clinical development of the programs.

AstraZeneca

In September 2006, we entered into a three-year research collaboration and license agreement with AstraZeneca for the discovery and development of TLR9 agonist-based therapies for the treatment of asthma and chronic obstructive pulmonary disease. We received an upfront payment of $10 million. In 2008, we received a milestone payment of $4.5 million for the nomination of the first candidate drug, AZD1419, for asthma. The research term of this agreement was extended through July 2010.

In October 2011, we amended our agreement with AstraZeneca to provide that we will conduct initial clinical development of AZD1419. Under the terms of the amended agreement, AstraZeneca will fund all program expenses to cover the cost of development activities through Phase 2a, estimated to total approximately $20.0 million. We received an initial payment of $3 million to begin the clinical development program. In the first quarter of 2012, we received a $2.6 million payment to advance AZD1419 into preclinical toxicology studies. In the fourth quarter of 2012, we and AstraZeneca agreed to advance AZD1419 towards a Phase 1 clinical trial, which entitles us to a development milestone payment of $6 million. If AstraZeneca chooses to advance the program following completion of Phase 2a, we will receive a $20 million milestone payment and AstraZeneca will retain its rights to develop the candidate therapy and to commercialize the resulting asthma product. Additionally, we are eligible to receive potential future development payments and, upon commercialization, we are eligible to receive royalties based on product sales of any products originating from the collaboration. We have the option to co-promote in the United States products arising from the collaboration, if any. AstraZeneca has the right to sublicense its rights upon our prior consent.

Revenue from the 2011 amendment has been deferred and is being recognized as the development work is performed over the estimated performance period of approximately five years. For the three months ended September 30, 2012, we recognized revenue of $0.2 million associated with the initial payment and $0.5 million from performance of research services. For the nine months ended September 30, 2012, we recognized revenue of $0.5 million related to the initial payment and $2.0 million from performance of research services. Revenues from the agreement were immaterial for 2011. As of September 30, 2012 and December 31, 2011, deferred revenue from the initial payment and performance of research services was $4.4 million and $4.9 million, respectively.

Absent early termination, the agreement will expire when all of AstraZeneca’s payment obligations expire. AstraZeneca has the right to terminate the agreement at any time upon prior written notice and either party may terminate the agreement early upon written notice if the other party commits an uncured material breach of the agreement.

National Institutes of Health (“NIH”) and Other Funding

In September 2008, we were awarded a five-year $17 million contract to develop our ISS technology using TLR9 agonists as vaccine adjuvants. The contract was awarded by the National Institute of Allergy and Infectious Diseases (“NIAID”) to develop novel vaccine adjuvant candidates that signal through receptors of the innate immune system. The contract supports adjuvant development for anthrax as well as other disease models. NIAID is funding 100% of the total $17 million cost of our program under Contract No. HHSN272200800038C.

In July 2011, we were awarded a $0.6 million grant from the NIH to fund research in preclinical models of skin autoimmune inflammation.

In May 2012, we were awarded a $0.4 million grant from the NIH to fund research in screening for inhibitors of TLR8 for treatment of rheumatoid arthritis and a $0.6 million grant to fund development of TLR8 inhibitors for treatment of autoimmune diseases.

In July 2012, we were awarded a $0.3 million grant from the NIH to take a systems biology approach to study the differences between individuals that do or do not respond to vaccination against hepatitis B.

During the three and nine month periods the following revenue was recognized (in thousands):


	Three Months Ended September 30,				Nine Months Ended September 30,
	2012		2011		2012		2011
NIAID Contract	$	1,100	$	534	$	2,840	$	1,650
All other NIH grants		119		124		348		787

Total NIH grant revenue recognized	$	1,219	$	658	$	3,188	$	2,437

Net Loss Per Share

9 Months Ended

Sep. 30, 2012

Net Loss Per Share

7. Net Loss Per Share

Basic net loss per share is calculated by dividing the net loss by the weighted-average number of common shares outstanding during the period. Diluted net loss per share is computed by dividing the net loss by the weighted-average number of common shares outstanding during the period and dilutive potential common shares using the treasury-stock method. For purposes of this calculation, common stock subject to repurchase by us, preferred stock, outstanding options and warrants are considered to be dilutive potential common shares and are only included in the calculation of diluted net loss per share when their effect is dilutive. Outstanding warrants, stock options and stock awards to purchase approximately 34,400,000 and 37,200,000 shares of common stock as of September 30, 2012 and 2011, respectively, were excluded from the calculation of diluted net loss per share for the quarters ended September 30, 2012 and 2011, because the effect of their inclusion would have been anti-dilutive.

Stockholders' Equity

9 Months Ended

Sep. 30, 2012

Stockholders' Equity

8. Stockholders’ Equity

As of September 30, 2012, we had the following stock-based compensation plans: the 1997 Equity Incentive Plan (“1997 Plan”); the 2004 Stock Incentive Plan, which includes the 2004 Non-Employee Director Option Program (“2004 Plan”); the 2004 Employee Stock Purchase Plan (“Purchase Plan”); the 2010 Employment Inducement Award Plan (“2010 Inducement Plan”); and the 2011 Equity Incentive Plan (“2011 Plan”).

The 2011 Plan is administered by our Board of Directors (“Board”), or a designated committee of the Board, and awards granted under the 2011 Plan have a term of 10 years unless earlier terminated by the Board. No additional awards will be granted under the 1997 Plan, the 2004 Plan or the 2010 Inducement Plan. All shares currently subject to awards outstanding under the 1997 Plan, 2004 Plan or 2010 Inducement Plan that expire or are forfeited will be included in the reserve for the 2011 Plan to the extent such shares would otherwise return to such plans.

Under our stock-based compensation plans, option awards generally vest over a four-year period contingent upon continuous service and expire ten years from the date of grant (or earlier upon termination of continuous service). The fair value-based measurement of each option is estimated on the date of grant using the Black-Scholes option valuation model. The fair value-based measurements and weighted-average assumptions used in the calculations of these measurements are as follows:


	Employee Stock Options												Employee Stock Purchase Plan
	Three Months Ended September 30,						Nine Months Ended September 30,						Nine Months Ended September 30,
	2012			2011			2012			2011			2012			2011
Weighted-average fair value per share	$	3.42		$	2.36		$	3.30		$	2.76		$	2.85		$	2.19
Risk-free interest rate		0.5	%		1.0	%		0.5	%		1.6	%		0.2	%		0.3	%
Expected life (in years)		4.0			4.0			4.0			4.0			1.2			1.2
Volatility		1.5			1.6			1.6			1.6			1.5			1.6
Expected dividends		—			—			—			—			—			—

Expected volatility is based on the historical volatility of our stock. The expected life of options granted is estimated based on historical option exercise and employee termination data. Executive level employees, who hold a majority of the options outstanding, and non-executive level employees were grouped and considered separately for valuation purposes. The risk-free interest rate for periods within the contractual life of the option is based on the U.S. Treasury yield curve in effect at the time of grant. The dividend yield is 0% for all years and is based on our history and expectation of dividend payouts.

Compensation expense is based on awards ultimately expected to vest and reflects estimated forfeitures. For equity awards with time-based vesting, the fair value-based measurement is amortized to expense on a straight-line basis over the vesting periods. For equity awards with performance-based vesting criteria, the fair value-based measurement is amortized to expense over the remaining vesting period commencing when the achievement of the vesting criteria becomes probable. As of September 30, 2012, the total unrecognized compensation cost related to non-vested equity awards deemed probable of vesting including all awards with time-based vesting amounted to $13.3 million, which is expected to be recognized over the remaining weighted-average vesting period of 2.37 years. As of September 30, 2012, the total unrecognized compensation cost related to non-vested equity awards not deemed probable of vesting amounted to $6.6 million.

As of September 30, 2012, approximately 2,600,000 shares related to equity awards with performance-based vesting criteria were outstanding.

Stock-based compensation expense for the three months ended September 30, 2012 and 2011, was $1.9 million and $1.3 million, respectively. We recognized stock-based compensation expense of $6.3 million and $3.9 million for the nine months ended September 30, 2012 and 2011, respectively. The components of stock-based compensation expense were (in thousands):


	Three Months Ended September 30,				Nine Months Ended September 30,
	2012		2011		2012		2011
Research and development expense	$	824	$	528	$	2,565	$	1,571
General and administrative expense		1,079		759		3,729		2,363

Total	$	1,903	$	1,287	$	6,294	$	3,934

Activity under the stock-based compensation plans during the nine months ended September 30, 2012, was as follows (in thousands except per share amounts):


	Options and Awards Available for Grant			Number of Options and Awards Outstanding			Weighted- Average Price Per Share
Balance at December 31, 2011		11,524			11,101		$	3.10
Options granted		(4,094	)		4,094		$	3.69
Awards granted		(1,815	)		1,815		$	4.23
Options exercised		—			(1,049	)	$	1.80
Awards vested		—			(115	)	$	1.98
Options cancelled:
Options forfeited (unvested)		412			(412	)	$	3.27
Options expired (vested)		36			(36	)	$	6.26
Awards cancelled (unvested)		—			(60	)	$	4.22

Balance at September 30, 2012		6,063			15,338		$	3.46

The following table summarizes outstanding options that are net of expected forfeitures (vested and expected to vest) and options exercisable under our stock option plans as of September 30, 2012 (in thousands, except per share amounts and years):


	Number of Shares		Weighted- Average Exercise Price Per Share		Weighted- Average Remaining Contractual Term (in years)		Aggregate Intrinsic Value
Outstanding options (vested and expected to vest)		12,561	$	3.35		7.27	$	20,857
Options exercisable		6,729	$	3.55		5.99	$	11,002

Employee Stock Purchase Plan

As of September 30, 2012, 996,000 shares have been reserved and approved for issuance under the Purchase Plan, subject to adjustment for a stock split, any future stock dividend or other similar change in our common stock or capital structure. To date, employees have acquired 698,724 shares of our common stock under the Purchase Plan. As of September 30, 2012, 297,276 shares of our common stock remained available for future purchases.

Warrants

As of September 30, 2012, warrants to purchase an aggregate of approximately 19,000,000 shares of our common stock were outstanding. During the three and nine months ended September 30, 2012, warrants were exercised to purchase an aggregate of approximately 200,000 and 4,900,000 shares, respectively, of our common stock.

- Definition

The entire disclosure for shareholders' equity, comprised of portions attributable to the parent entity and noncontrolling interest, if any, including other comprehensive income (as applicable). Including, but not limited to: (1) balances of common stock, preferred stock, additional paid-in capital, other capital and retained earnings; (2) accumulated balance for each classification of other comprehensive income and total amount of comprehensive income; (3) amount and nature of changes in separate accounts, including the number of shares authorized and outstanding, number of shares issued upon exercise and conversion, and for other comprehensive income, the adjustments for reclassifications to net income; (4) rights and privileges of each class of stock authorized; (5) basis of treasury stock, if other than cost, and amounts paid and accounting treatment for treasury stock purchased significantly in excess of market; (6) dividends paid or payable per share and in the aggregate for each class of stock for each period presented; (7) dividend restrictions and accumulated preferred dividends in arrears (in aggregate and per share amount); (8) retained earnings appropriations or restrictions, such as dividend restrictions; (9) impact of change in accounting principle, initial adoption of new accounting principle and correction of an error in previously issued financial statements; (10) shares held in trust for Employee Stock Ownership Plan (ESOP); (11) deferred compensation related to issuance of capital stock; (12) note received for issuance of stock; (13) unamortized discount on shares; (14) description, terms, and number of warrants or rights outstanding; (15) shares under subscription and subscription receivables, effective date of new retained earnings after quasi-reorganization and deficit eliminated by quasi-reorganization and, for a period of at least ten years after the effective date, the point in time from which the new retained dates; and (16) retroactive effective of subsequent change in capital structure.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08.(d),(e))
-URI http://asc.fasb.org/extlink&oid=6881521&loc=d3e23780-122690

Reference 2: http://www.xbrl.org/2003/role/presentationRef
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-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 4
-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21484-112644

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 310
-SubTopic 10
-Section S99
-Paragraph 2
-Subparagraph (SAB TOPIC 4.E)
-URI http://asc.fasb.org/extlink&oid=6228006&loc=d3e74512-122707

Reference 4: http://www.xbrl.org/2003/role/presentationRef
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-Name Accounting Standards Codification
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-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21488-112644

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 210
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-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02.29-31)
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Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
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-Subparagraph (SAB TOPIC 4.C)
-URI http://asc.fasb.org/extlink&oid=6959260&loc=d3e187143-122770

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
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-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21506-112644

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.3-04)
-URI http://asc.fasb.org/extlink&oid=6959260&loc=d3e187085-122770

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 30
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=6405834&loc=d3e23285-112656

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21475-112644

Reference 11: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Glossary Preferred Stock
-URI http://asc.fasb.org/extlink&oid=6521494

Reference 12: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
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-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21463-112644

Reference 13: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
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-Section 50
-Paragraph 11
-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21564-112644

Reference 14: http://www.xbrl.org/2003/role/presentationRef
-Publisher AICPA
-Name Accounting Research Bulletin (ARB)
-Number 43
-Section B
-Paragraph 7, 11A
-Chapter 1
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 15: http://www.xbrl.org/2003/role/presentationRef
-Publisher AICPA
-Name Accounting Principles Board Opinion (APB)
-Number 12
-Paragraph 10
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 16: http://www.xbrl.org/2003/role/presentationRef
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-Name Statement of Financial Accounting Standard (FAS)
-Number 5
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-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 17: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 08
-Paragraph d
-Article 4

Reference 18: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 02
-Paragraph 29, 30, 31
-Article 5

Reference 19: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Staff Accounting Bulletin (SAB)
-Number Topic 4
-Section E

Reference 20: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 08
-Article 4

Reference 21: http://www.xbrl.org/2003/role/presentationRef
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-Name Staff Accounting Bulletin (SAB)
-Number Topic 4
-Section C

Reference 22: http://www.xbrl.org/2003/role/presentationRef
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-Name Statement of Financial Accounting Standard (FAS)
-Number 129
-Paragraph 2, 3, 4, 5, 6, 7, 8
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 23: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 04
-Article 3

+ Details

Organization and Summary of Significant Accounting Policies (Policies)	9 Months Ended
	Sep. 30, 2012
Basis of Presentation	Basis of Presentation Our accompanying unaudited condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information and pursuant to the instructions to Form 10-Q and Article 10 of Regulation S-X. In our opinion, these unaudited condensed consolidated financial statements include all adjustments, consisting only of normal recurring adjustments, which we consider necessary to fairly state our financial position and the results of our operations and cash flows. Interim-period results are not necessarily indicative of results of operations or cash flows for a full-year period or any other interim-period. The condensed consolidated balance sheet at December 31, 2011, has been derived from audited financial statements at that date, but excludes disclosures required by GAAP for complete financial statements. The unaudited condensed consolidated financial statements and these notes should be read in conjunction with our Annual Report on Form 10-K for the year ended December 31, 2011, as filed with the Securities and Exchange Commission (the “SEC”). The unaudited condensed consolidated financial statements include the accounts of Dynavax and our wholly-owned subsidiaries, Rhein Biotech GmbH (“Rhein” or “Dynavax Europe”) and Dynavax International, B.V. All significant intercompany accounts and transactions have been eliminated. We operate in one business segment, which is the discovery and development of biopharmaceutical products.
Liquidity and Financial Condition	Liquidity and Financial Condition We have incurred significant operating losses and negative cash flows from operations since our inception. As of September 30, 2012, we had cash, cash equivalents and marketable securities of $148.3 million. We currently estimate that we have sufficient cash resources to meet our anticipated cash needs through at least the next 12 months based on cash, cash equivalents and marketable securities on hand as of September 30, 2012, as well as anticipated revenues and funding from existing agreements. If we are unable to generate significant revenues from HEPLISAV, if it is approved, and to continue development of our product candidates, we may need to raise additional funds. This may occur through strategic alliance and licensing arrangements and/or future public or private financings. Sufficient additional funding may not be available on acceptable terms, or at all. Additional equity financings, if completed, could result in significant dilution or otherwise adversely affect the rights of existing shareholders. If adequate funds are not available in the future, we may need to delay, reduce the scope of or put on hold the HEPLISAV program or our other development programs while we seek strategic alternatives.
Use of Estimates	Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the unaudited condensed consolidated financial statements and accompanying notes. Actual results may differ from these estimates.
Summary of Significant Accounting Policies	Summary of Significant Accounting Policies We believe that there have been no significant changes in our critical accounting policies during the nine months ended September 30, 2012, as compared with those disclosed in our Annual Report on Form 10-K for the year ended December 31, 2011. Below we describe our accounting policy related to revenue recognition.
Revenue Recognition	*Revenue Recognition* Our revenues are derived from collaborative and service agreements as well as grants. We enter into license and manufacturing agreements and collaborative research and development arrangements with pharmaceutical and biotechnology partners that may include multiple deliverables. Our arrangements may include one or more of the following elements: upfront license payments, cost reimbursement for the performance of research and development activities, milestone payments, other contingent payments, contract manufacturing service fees, royalties and license fees. Each deliverable in the arrangement is evaluated to determine whether it meets the criteria to be accounted for as a separate unit of accounting or whether it should be combined with other deliverables. We recognize revenue when there is persuasive evidence that an arrangement exists, delivery has occurred or services have been rendered, the price is fixed or determinable and collectability is reasonably assured. On January 1, 2011, we adopted on a prospective basis Financial Accounting Standards Board (“FASB”) Accounting Standards Update (“ASU”) 2009-13, Multiple-Deliverable Revenue Arrangements, which amends the criteria related to identifying separate units of accounting and provides guidance on whether multiple deliverables exist, how an arrangement should be separated and the consideration allocated. Non-refundable upfront fees received for license and collaborative agreements entered into before January 1, 2011 and other payments under collaboration agreements where we have continuing performance obligations are deferred and recognized over our expected performance period. Revenue is recognized on a ratable basis, unless we determine that another methodology is more appropriate, through the date at which our performance obligations are completed. Management makes its best estimate of the period over which we expect to fulfill our performance obligations, which may include clinical development activities. Given the uncertainties of research and development collaborations, significant judgment is required to determine the duration of the performance period. We recognize cost reimbursement revenue under collaborative agreements as the related research and development costs are incurred, as provided for under the terms of these agreements. On January 1, 2011, we elected to prospectively adopt the milestone method as described in FASB ASU 2010-17, Milestone Method of Revenue Recognition. Under the milestone method, contingent consideration received from the achievement of a substantive milestone is recognized in its entirety in the period in which the milestone is achieved. A milestone is defined as an event having all of the following characteristics: (1) there is substantive uncertainty at the date the arrangement is entered into that the event will be achieved, (2) the event can only be achieved based in whole or in part on either the entity’s performance or a specific outcome resulting from the entity’s performance and (3) if achieved, the event would result in additional payments being due to the entity. Our license and collaboration agreements with our partners provide for payments to be paid to us upon the achievement of development milestones. Given the challenges inherent in developing biologic products, there is substantial uncertainty whether any such milestones would be achieved at the time we enter into these agreements. We evaluate whether the development milestones meet the criteria to be considered substantive. The conditions include: (1) the development work is contingent upon either of the following: (a) the vendor’s performance to achieve the milestone or (b) the enhancement of the value of the deliverable item or items as a result of a specific outcome resulting from the vendor’s performance to achieve the milestone; (2) it relates solely to past performance and; (3) it is reasonable relative to all the deliverable and payment terms within the arrangement. As a result of our analysis, we consider our development milestones to be substantive and, accordingly, we expect to recognize as revenue future payments received from such milestones as we achieve each milestone. Milestone payments that are contingent upon the achievement of substantive at-risk performance criteria are recognized in full upon achievement of those milestone events in accordance with the terms of the agreement and assuming all other revenue recognition criteria are met. All revenue recognized to date under our collaborative agreements has been nonrefundable. Our license and collaboration agreements with certain partners also provide for contingent payments to be paid to us based solely upon the performance of our partner. For such contingent payments we expect to recognize the payments as revenue upon receipt, provided that collection is reasonably assured and the other revenue recognition criteria have been satisfied. Revenues from manufacturing services are recognized upon meeting the criteria for substantial performance and acceptance by the customer. Revenue from royalty payments is contingent on future sales activities by our licensees. As a result, we recognize royalty revenue when reported by our licensees and when collection is reasonably assured. Revenue from government and private agency grants is recognized as the related research expenses are incurred and to the extent that funding is approved. Additionally, we recognize revenue based on the facilities and administrative cost rate reimbursable per the terms of the grant awards.
Recent Accounting Pronouncements	Recent Accounting Pronouncements *Accounting Standards Update 2011-04* In May 2011, the FASB issued ASU No. 2011-04, Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and IFRS. This ASU is the result of joint efforts by the FASB and International Accounting Standards Board to develop a single, converged fair value framework. While this ASU is largely consistent with existing fair value measurement principles in GAAP, it expands Accounting Standards Codification (“ASC”) Topic 820, Fair Value Measurement (“ASC 820”) existing disclosure requirements for fair value measurements and makes other amendments. Many of these amendments were made to eliminate unnecessary wording differences between GAAP and International Financial Reporting Standards (“IFRS”), which could change how fair value measurement guidance in ASC 820 is applied. We adopted the disclosure requirements in the quarter ended March 31, 2012, and included the required disclosure in Note 2 “Fair Value Measurements.” *Accounting Standards Update 2011-05* In June 2011, the FASB issued ASU No. 2011-05, Presentation of Comprehensive Income. This ASU gives an entity the option to present the total of comprehensive income, the components of net income and the components of other comprehensive income either in a single continuous statement of comprehensive income or in two separate but consecutive statements. ASU No. 2011-05 was effective on a retrospective basis for us on January 1, 2012. We adopted this presentation of comprehensive income in the quarter ended March 31, 2012.

- Definition

Disclosure of accounting policy for revenue recognition. If the entity has different policies for different types of revenue transactions, the policy for each material type of transaction is generally disclosed. If a sales transaction has multiple element arrangements (for example, delivery of multiple products, services or the rights to use assets) the disclosure may indicate the accounting policy for each unit of accounting as well as how units of accounting are determined and valued. The disclosure may encompass important judgment as to appropriateness of principles related to recognition of revenue. The disclosure also may indicate the entity's treatment of any unearned or deferred revenue that arises from the transaction.

+ References + Details

Fair Value Measurements (Tables)

9 Months Ended

Sep. 30, 2012

Fair Value Hierarchy for Financial Assets Measured at Fair Value on a Recurring Basis

The following table represents the fair value hierarchy for our financial assets measured at fair value on a recurring basis as of September 30, 2012 and December 31, 2011 (in thousands):


	Level 1		Level 2		Level 3		Total
September 30, 2012:
Money market funds	$	18,862	$	—	$	—	$	18,862
U.S. government agency securities		—		102,174		—		102,174
Corporate debt securities, secured by U.S. government		—		24,578		—		24,578

Total	$	18,862	$	126,752	$	—	$	145,614

December 31, 2011:
Money market funds	$	17,171	$	—	$	—	$	17,171
U.S. Government agency securities		—		35,920		—		35,920
Corporate debt securities, secured by U.S. government		—		58,580		—		58,580

Total	$	17,171	$	94,500	$	—	$	111,671

Cash, cash equivalents and marketable securities (Tables)

9 Months Ended

Sep. 30, 2012

Summary of Cash, Cash Equivalents and Available-for-sale Marketable Securities

The following is a summary of cash, cash equivalents and available-for-sale marketable securities as of September 30, 2012 and December 31, 2011 (in thousands):


	Amortized Cost		Unrealized Gains		Unrealized Losses			Estimated Fair Value
September 30, 2012:
Cash and cash equivalents:
Cash	$	2,665	$	—	$	—		$	2,665
Money market funds		18,862		—		—			18,862
U.S. government agency securities		870		—		—			870
Corporate debt securities		2,253		—		—			2,253

Total cash and cash equivalents		24,650		—		—			24,650

Marketable securities available-for-sale:
U.S. government agency securities		101,274		34		(4	)		101,304
Corporate debt securities		22,326		—		(1	)		22,325

Total marketable securities available-for-sale		123,600		34		(5	)		123,629

Total cash, cash equivalents and marketable securities	$	148,250	$	34	$	(5	)	$	148,279

December 31, 2011:
Cash and cash equivalents:
Cash	$	2,290	$	—	$	—		$	2,290
Money market funds		17,171		—		—			17,171
U.S. government agency securities		9,438		—		—			9,438
Corporate debt securities		3,044		—		(2	)		3,042

Total cash and cash equivalents		31,943		—		(2	)		31,941

Marketable securities available-for-sale:
U.S. Government agency securities		26,488		—		(6	)		26,482
Corporate debt securities		55,533		9		(4	)		55,538

Total marketable securities available-for-sale		82,021		9		(10	)		82,020

Total cash, cash equivalents and marketable securities	$	113,964	$	9	$	(12	)	$	113,961

Summary of Amortized Cost and Estimated Fair Value of Available-for-sale Securities

The following is a summary of the amortized cost and estimated fair value of available-for-sale securities at September 30, 2012, by contractual maturity (in thousands):


	September 30, 2012
	Amortized Cost		Estimated Fair Value
Mature in one year or less	$	76,342	$	76,360
Mature after one year through two years		47,258		47,269

	$	123,600	$	123,629

- Definition

Tabular disclosure of available-for-sale securities which includes, but is not limited to, changes in the cost basis and fair value, fair value and gross unrealized gain (loss), fair values by type of security, contractual maturity and classification, amortized cost basis, contracts to acquire securities to be accounted for as available-for-sale, debt maturities, transfers to trading, change in net unrealized holding gain (loss) net of tax, continuous unrealized loss position fair value, aggregate losses qualitative disclosures, other than temporary impairment (OTTI) losses or other disclosures related to available for sale securities.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 320
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=6957658&loc=d3e62557-112803

Reference 2: http://www.xbrl.org/2003/role/presentationRef
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-Name Accounting Standards Codification
-Topic 320
-SubTopic 10
-Section 50
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Reference 3: http://www.xbrl.org/2003/role/presentationRef
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-Name Accounting Standards Codification
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-URI http://asc.fasb.org/extlink&oid=6872113&loc=d3e27198-111563

Reference 4: http://www.xbrl.org/2003/role/presentationRef
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-Name Accounting Standards Codification
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-URI http://asc.fasb.org/extlink&oid=6957658&loc=d3e62586-112803

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-Name Accounting Standards Codification
-Topic 320
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-Name Accounting Standards Codification
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Reference 7: http://www.xbrl.org/2003/role/presentationRef
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-Name Accounting Standards Codification
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-URI http://asc.fasb.org/extlink&oid=6872113&loc=d3e27290-111563

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 115
-Paragraph 19, 20, 21
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name FASB Staff Position (FSP)
-Number FAS115-1/124-1
-Paragraph 17
-Subparagraph a, b
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Emerging Issues Task Force (EITF)
-Number 03-1
-Paragraph 21
-Subparagraph a, b
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

+ Details

Commitments and Contingencies (Tables)

9 Months Ended

Sep. 30, 2012

Future Minimum Payments under Non-Cancelable Portion of Operating Leases

Future minimum payments under the non-cancelable portion of our operating leases at September 30, 2012, excluding payments from sublease agreements, are as follows (in thousands):


Year ending December 31,
2012 (remaining three months)	$	450
2013		1,799
2014		1,763
2015		1,799
2016		1,836
Thereafter		4,417

Total	$	12,064

Collaborative Research and Development Agreements (Tables)

9 Months Ended

Sep. 30, 2012

Revenue Recognized

During the three and nine month periods the following revenue was recognized (in thousands):


	Three Months Ended September 30,				Nine Months Ended September 30,
	2012		2011		2012		2011
NIAID Contract	$	1,100	$	534	$	2,840	$	1,650
All other NIH grants		119		124		348		787

Total NIH grant revenue recognized	$	1,219	$	658	$	3,188	$	2,437

Stockholders' Equity (Tables)

9 Months Ended

Sep. 30, 2012

Black-Scholes Valuation Model and Weighted-Average Assumptions

The fair value-based measurement of each option is estimated on the date of grant using the Black-Scholes option valuation model. The fair value-based measurements and weighted-average assumptions used in the calculations of these measurements are as follows:


	Employee Stock Options												Employee Stock Purchase Plan
	Three Months Ended September 30,						Nine Months Ended September 30,						Nine Months Ended September 30,
	2012			2011			2012			2011			2012			2011
Weighted-average fair value per share	$	3.42		$	2.36		$	3.30		$	2.76		$	2.85		$	2.19
Risk-free interest rate		0.5	%		1.0	%		0.5	%		1.6	%		0.2	%		0.3	%
Expected life (in years)		4.0			4.0			4.0			4.0			1.2			1.2
Volatility		1.5			1.6			1.6			1.6			1.5			1.6
Expected dividends		—			—			—			—			—			—

Stock-Based Compensation Expense

The components of stock-based compensation expense were (in thousands):


	Three Months Ended September 30,				Nine Months Ended September 30,
	2012		2011		2012		2011
Research and development expense	$	824	$	528	$	2,565	$	1,571
General and administrative expense		1,079		759		3,729		2,363

Total	$	1,903	$	1,287	$	6,294	$	3,934

Activity under Stock-Based Compensation Plans

Activity under the stock-based compensation plans during the nine months ended September 30, 2012, was as follows (in thousands except per share amounts):


	Options and Awards Available for Grant			Number of Options and Awards Outstanding			Weighted- Average Price Per Share
Balance at December 31, 2011		11,524			11,101		$	3.10
Options granted		(4,094	)		4,094		$	3.69
Awards granted		(1,815	)		1,815		$	4.23
Options exercised		—			(1,049	)	$	1.80
Awards vested		—			(115	)	$	1.98
Options cancelled:
Options forfeited (unvested)		412			(412	)	$	3.27
Options expired (vested)		36			(36	)	$	6.26
Awards cancelled (unvested)		—			(60	)	$	4.22

Balance at September 30, 2012		6,063			15,338		$	3.46

Summary of Outstanding Options Net of Expected Forfeitures (Vested and Expected to Vest) and Options Exercisable under Stock Option Plans


	Number of Shares		Weighted- Average Exercise Price Per Share		Weighted- Average Remaining Contractual Term (in years)		Aggregate Intrinsic Value
Outstanding options (vested and expected to vest)		12,561	$	3.35		7.27	$	20,857
Options exercisable		6,729	$	3.55		5.99	$	11,002

Organization and Summary of Significant Accounting Policies - Additional Information (Detail) $ in Millions	Sep. 30, 2012 USD ($)
Organization, Consolidation and Presentation of Financial Statements Disclosure [Line Items]
Cash, cash equivalents and marketable securities	$ 148.3

Fair Value Hierarchy for Financial Assets and Liabilities Measured at Fair Value on a Recurring Basis (Detail) - Fair Value, Measurements, Recurring - USD ($) $ in Thousands	Sep. 30, 2012	Dec. 31, 2011
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Assets	$ 145,614	$ 111,671
Money market funds
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Assets	18,862	17,171
US Government Agencies Debt Securities
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Assets	102,174	35,920
Corporate Debt Securities, Secured by U.S. Government
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Assets	24,578	58,580
Fair Value, Inputs, Level 1
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Assets	18,862	17,171
Fair Value, Inputs, Level 1 \| Money market funds
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Assets	18,862	17,171
Fair Value, Inputs, Level 2
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Assets	126,752	94,500
Fair Value, Inputs, Level 2 \| US Government Agencies Debt Securities
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Assets	102,174	35,920
Fair Value, Inputs, Level 2 \| Corporate Debt Securities, Secured by U.S. Government
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Assets	$ 24,578	$ 58,580

Fair Value Measurements - Additional Information (Detail) - USD ($) $ in Thousands	1 Months Ended	3 Months Ended		9 Months Ended
	Dec. 31, 2009	Sep. 30, 2012	Sep. 30, 2011	Sep. 30, 2012	Sep. 30, 2011
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Principal amount, due date	Dec. 31, 2012
Short term liability		$ 14,500		$ 14,500
Net present value model, discount rate		17.00%		17.00%
Number Of trading Days		30 days		30 days
Issuance Of common stock value For payment of stock issuance cost				$ 1,150
Interest expenses		$ 500	$ 500	$ 1,600	$ 1,400
Principal Amount
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Issued note to Holdings, principal amount	$ 15,000

Summary of Cash, Cash Equivalents and Available-for-sale Marketable Securities (Detail) - USD ($) $ in Thousands	Sep. 30, 2012	Dec. 31, 2011
Cash, cash equivalents and marketable securities [Line Items]
Amortized Cost	$ 148,250	$ 113,964
Unrealized Gains	34	9
Unrealized Losses	(5)	(12)
Estimated Fair Value	148,279	113,961
Cash and Cash Equivalents
Cash, cash equivalents and marketable securities [Line Items]
Amortized Cost	24,650	31,943
Unrealized Losses		(2)
Estimated Fair Value	24,650	31,941
Cash and Cash Equivalents \| Cash
Cash, cash equivalents and marketable securities [Line Items]
Amortized Cost	2,665	2,290
Estimated Fair Value	2,665	2,290
Cash and Cash Equivalents \| Money market funds
Cash, cash equivalents and marketable securities [Line Items]
Amortized Cost	18,862	17,171
Estimated Fair Value	18,862	17,171
Cash and Cash Equivalents \| US Government Agencies Debt Securities
Cash, cash equivalents and marketable securities [Line Items]
Amortized Cost	870	9,438
Estimated Fair Value	870	9,438
Cash and Cash Equivalents \| Corporate Debt Securities, Secured by U.S. Government
Cash, cash equivalents and marketable securities [Line Items]
Amortized Cost	2,253	3,044
Unrealized Losses		(2)
Estimated Fair Value	2,253	3,042
Available-for-sale Securities
Cash, cash equivalents and marketable securities [Line Items]
Amortized Cost	123,600	82,021
Unrealized Gains	34	9
Unrealized Losses	(5)	(10)
Estimated Fair Value	123,629	82,020
Available-for-sale Securities \| US Government Agencies Debt Securities
Cash, cash equivalents and marketable securities [Line Items]
Amortized Cost	101,274	26,488
Unrealized Gains	34
Unrealized Losses	(4)	(6)
Estimated Fair Value	101,304	26,482
Available-for-sale Securities \| Corporate Debt Securities, Secured by U.S. Government
Cash, cash equivalents and marketable securities [Line Items]
Amortized Cost	22,326	55,533
Unrealized Gains		9
Unrealized Losses	(1)	(4)
Estimated Fair Value	$ 22,325	$ 55,538

Summary of Amortized Cost and Estimated Fair Value of Available-for-sale Securities (Detail) - USD ($) $ in Thousands	Sep. 30, 2012	Dec. 31, 2011
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	$ 148,250	$ 113,964
Estimated Fair Value	148,279	113,961
Available-for-sale Securities
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	123,600	82,021
Estimated Fair Value	123,629	$ 82,020
Available-for-sale Securities \| Due In One Year Or Less
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	76,342
Estimated Fair Value	76,360
Available-for-sale Securities \| Due After One Year Through Two Years
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	47,258
Estimated Fair Value	$ 47,269

- Definition

This element represents the portion of the balance sheet assertion valued at fair value by the entity whether such amount is presented as a separate caption or as a parenthetical disclosure. Additionally, this element may be used in connection with the fair value disclosures required in the footnote disclosures to the financial statements. The element may be used in both the balance sheet and disclosure in the same submission. This item represents Available-for-sale Securities which consist of all investments in certain debt and equity securities neither classified as trading or held-to-maturity securities. A debt security represents a creditor relationship with an enterprise. Debt securities include, among other items, US Treasury securities, US government securities, municipal securities, corporate bonds, convertible debt, commercial paper, and all securitized debt instruments. An equity security represents an ownership interest in an enterprise or the right to acquire or dispose of an ownership interest in an enterprise at fixed or determinable prices. Equity securities include, among other things, common stock, certain preferred stock, warrant rights, call options, and put options, but do not include convertible debt. An entity may opt to provide the reader with additional narrative text to better understand the nature of investments in debt and equity securities which are categorized as Available-for-sale.

+ References + Details

Cash, Cash Equivalents and Marketable Securities - Additional Information (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2012	Sep. 30, 2011	Sep. 30, 2012	Sep. 30, 2011
Schedule of Available-for-sale Securities [Line Items]
Realized gains or losses from the sale of marketable securities	$ 0	$ 0	$ 0	$ 0

Public Financing - Additional Information (Detail) $ / shares in Units, $ in Millions	1 Months Ended
	May 09, 2012 USD ($) $ / shares shares
Subsidiary, Sale of Stock [Line Items]
Stock issued during period, shares \| shares	17,500,000
Public offering net price per share \| $ / shares	$ 4.25
Net proceeds from offering \| $	$ 69.6

Commitments and Contingencies - Additional Information (Detail) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2012	Sep. 30, 2011	Sep. 30, 2012	Sep. 30, 2011	Dec. 31, 2011
Loss Contingencies [Line Items]
Rent expense, net	$ 0.4	$ 0.4	$ 1.3	$ 1.3
Deferred rent	$ 0.6		0.6		$ 0.6
Future payments obligation			$ 10.5
Berkeley, California (the "Berkeley Lease")
Loss Contingencies [Line Items]
Operating leases expiration date			2017-09
Dusseldorf, Germany (the "Dusseldorf Lease")
Loss Contingencies [Line Items]
Operating leases expiration date			2023-03

Future Minimum Payments under Non-Cancelable Portion of Operating Leases (Detail) $ in Thousands	Sep. 30, 2012 USD ($)
Operating Leased Assets [Line Items]
2012 (remaining three months)	$ 450
2013	1,799
2014	1,763
2015	1,799
2016	1,836
Thereafter	4,417
Total	$ 12,064

Collaborative Research and Development Agreements - Additional Information (Detail) $ in Thousands	1 Months Ended				3 Months Ended				9 Months Ended		12 Months Ended
	Oct. 31, 2011 USD ($)	Dec. 31, 2008 USD ($) Project	Sep. 30, 2008 USD ($)	Sep. 30, 2006	Dec. 31, 2012 USD ($)	Sep. 30, 2012 USD ($)	Mar. 31, 2012 USD ($)	Sep. 30, 2011 USD ($)	Sep. 30, 2012 USD ($)	Sep. 30, 2011 USD ($)	Dec. 31, 2011 USD ($)	Dec. 31, 2008 USD ($)	Jul. 31, 2012 USD ($)	May 31, 2012 USD ($)	Jul. 31, 2011 USD ($)
Product Information [Line Items]
Collaboration revenue						$ 1,050		$ 369	$ 3,602	$ 7,098
Glaxo, Smith, Kline
Product Information [Line Items]
Number of programs for research and early clinical development \| Project		4
Collaboration revenue		$ 10,000
Revenue from milestone payment								6,000		6,000	$ 15,000
Deferred revenue recognition period		7 years										7 years
Revenue of deferred revenue						400		$ 400	1,100	$ 1,100
Deferred revenue						4,600			4,600		$ 5,700
Astra Zeneca
Product Information [Line Items]
Collaboration revenue									10,000
Revenue from milestone payment						$ 200			$ 500			$ 4,500
Deferred revenue recognition period						5 years			5 years		5 years
Deferred revenue						$ 4,400			$ 4,400		$ 4,900
Research collaboration and license agreement period				3 years
Revenue from the performance of research services						$ 500			$ 2,000
Astra Zeneca \| Amendment
Product Information [Line Items]
Collaboration revenue	$ 3,000
Cost of clinical development activities	$ 20,000
Development milestone payment					$ 6,000
Astra Zeneca \| Amendment \| Advance the program following completion of Phase 2a
Product Information [Line Items]
Collaboration revenue							$ 2,600
Revenue from milestone payment							$ 20,000
National Institutes of Health \| Fund Research
Product Information [Line Items]
Grants receivable														$ 400
National Institutes of Health \| Business Development
Product Information [Line Items]
Grants receivable														$ 600
National Institutes of Health \| HBV
Product Information [Line Items]
Grants receivable													$ 300
National Institutes of Health \| HPV
Product Information [Line Items]
Grants receivable															$ 600
National Institutes of Health \| ISS Technology
Product Information [Line Items]
Contract agreement period			5 years
Contract awarded to develop technology			$ 17,000
Percentage of contract NIAID is funding			100.00%

Revenue Recognized (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
Revenue Recognized (Detail) - USD ($) $ in Thousands	Sep. 30, 2012	Sep. 30, 2011	Sep. 30, 2012	Sep. 30, 2011
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Grant revenue	$ 1,219	$ 658	$ 3,188	$ 2,437
National Institutes of Health
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Grant revenue	1,219	658	3,188	2,437
National Institutes of Health \| NIAID Contract
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Grant revenue	1,100	534	2,840	1,650
National Institutes of Health \| All Other
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Grant revenue	$ 119	$ 124	$ 348	$ 787

Net Loss Per Share - Additional Information (Detail) - shares	9 Months Ended
	Sep. 30, 2012	Sep. 30, 2011
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Outstanding warrants and equity awards were not included in diluted net loss per share calculation	34,400,000	37,200,000

- Definition

Securities (including those issuable pursuant to contingent stock agreements) that could potentially dilute basic earnings per share (EPS) or earnings per unit (EPU) in the future that were not included in the computation of diluted EPS or EPU because to do so would increase EPS or EPU amounts or decrease loss per share or unit amounts for the period presented.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Glossary Antidilution
-URI http://asc.fasb.org/extlink&oid=6505113

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Glossary Diluted Earnings Per Share
-URI http://asc.fasb.org/extlink&oid=6510752

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Glossary Contingent Stock Agreement
-URI http://asc.fasb.org/extlink&oid=6508534

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 50
-Paragraph 1
-Subparagraph (c)
-URI http://asc.fasb.org/extlink&oid=6371337&loc=d3e3550-109257

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 128
-Paragraph 40
-Subparagraph c
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 128
-Paragraph 13, 14
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Emerging Issues Task Force (EITF)
-Number 07-4
-Paragraph 4
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 128
-Paragraph 171
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

+ Details

Stockholders' Equity - Additional Information (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2012	Sep. 30, 2011	Sep. 30, 2012	Sep. 30, 2011	Dec. 31, 2011
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Option awards vesting period			4 years
Option awards expiry period			10 years
Expected Dividend yield			0.00%	0.00%
Stock-based compensation expense	$ 1,903	$ 1,287	$ 6,294	$ 3,934
Shares remaining available for future purchases	6,063,000		6,063,000		11,524,000
Common stock shares outstanding As converted basis	19,000,000		19,000,000
Common stock issued for warrants exercised	200,000		4,900,000
Employee Stock Purchase Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares reserved and approved for issuance	996,000		996,000
Shares issued to employees			698,724
Shares remaining available for future purchases	297,276		297,276
Deemed Probable
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total unrecognized compensation cost related to non-vested equity awards	$ 13,300		$ 13,300
Total unrecognized compensation cost, weighted-average vesting period			2 years 4 months 13 days
Not Deemed Probable
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total unrecognized compensation cost related to non-vested equity awards	$ 6,600		$ 6,600
Stock Incentive Plan 2011
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expiration period			10 years
Performance based Vesting Condition
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares related to equity awards with performance-based vesting criteria were outstanding	2,600,000		2,600,000

Black-Scholes Valuation Model and Weighted-Average Assumptions (Detail) - $ / shares	3 Months Ended		9 Months Ended
	Sep. 30, 2012	Sep. 30, 2011	Sep. 30, 2012	Sep. 30, 2011
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Weighted-average fair value per share, other than options			$ 4.23
Expected dividends			0.00%	0.00%
Employee Stock Option
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Weighted-average fair value per share, options	$ 3.42	$ 2.36	$ 3.30	$ 2.76
Risk-free interest rate	0.50%	1.00%	0.50%	1.60%
Expected life (in years)	4 years	4 years	4 years	4 years
Volatility	1.50%	1.60%	1.60%	1.60%
Expected dividends
Employee stock purchase plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Weighted-average fair value per share, other than options			$ 2.85	$ 2.19
Risk-free interest rate			0.20%	0.30%
Expected life (in years)			1 year 2 months 12 days	1 year 2 months 12 days
Volatility			1.50%	1.60%
Expected dividends

Stock-Based Compensation Expense (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2012	Sep. 30, 2011	Sep. 30, 2012	Sep. 30, 2011
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items]
Share Based Compensation	$ 1,903	$ 1,287	$ 6,294	$ 3,934
Research and Development Expense
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items]
Share Based Compensation	824	528	2,565	1,571
General and Administrative Expense
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items]
Share Based Compensation	$ 1,079	$ 759	$ 3,729	$ 2,363

Activity under Stock Based Compensation Plans (Detail) shares in Thousands	9 Months Ended
	Sep. 30, 2012 $ / shares shares
Options and Awards Available for Grant
Beginning balance	11,524
Options granted	(4,094)
Awards granted	(1,815)
Options exercised	1,049
Awards vested	115
Options forfeited (unvested)	412
Options expired (vested)	36
Awards cancelled (unvested)	60
Ending balance	6,063
Number of Options and Awards Outstanding
Number of share outstanding beginning balance	11,101
Options granted	4,094
Awards granted	1,815
Options exercised	(1,049)
Awards vested	(115)
Options forfeited (unvested)	(412)
Options expired (vested)	(36)
Awards cancelled (unvested)	(60)
Number of share outstanding ending balance	15,338
Weighted-Average Price Per Share
Beginning balance \| $ / shares	$ 3.10
Options granted \| $ / shares	3.69
Awards granted \| $ / shares	4.23
Options exercised \| $ / shares	1.80
Awards vested \| $ / shares	1.98
Options forfeited (unvested) \| $ / shares	3.27
Options expired (vested) \| $ / shares	6.26
Awards cancelled (unvested) \| $ / shares	4.22
Ending balance \| $ / shares	$ 3.46

Summary of Outstanding Options Net of Expected Forfeitures (Vested And Expected to Vest) And Options Exercisable Under Our Stock Option Plans (Detail) $ / shares in Units, shares in Thousands, $ in Thousands	9 Months Ended
	Sep. 30, 2012 USD ($) $ / shares shares
Number of Shares
Outstanding options (vested and expected to vest) \| shares	12,561
Options exercisable \| shares	6,729
Weighted-average exercise price Per Share
Outstanding options (vested and expected to vest) \| $ / shares	$ 3.35
Options exercisable \| $ / shares	$ 3.55
Weighted-average remaining contractual term (in years)
Outstanding options (vested and expected to vest)	7 years 3 months 7 days
Options exercisable	5 years 11 months 27 days
Aggregate intrinsic value
Outstanding options (vested and expected to vest) \| $	$ 20,857
Options exercisable \| $	$ 11,002