View Filing Data

Document and Entity Information - USD ($)	12 Months Ended
Document and Entity Information - USD ($)	Dec. 31, 2017	Mar. 01, 2018	Jun. 30, 2017
Document And Entity Information [Abstract]
Document Type	10-K
Amendment Flag	false
Document Period End Date	Dec. 31, 2017
Document Fiscal Year Focus	2017
Document Fiscal Period Focus	FY
Trading Symbol	DVAX
Entity Registrant Name	DYNAVAX TECHNOLOGIES CORP
Entity Central Index Key	0001029142
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	Yes
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Filer Category	Accelerated Filer
Entity Common Stock, Shares Outstanding		61,681,017
Entity Public Float			$ 491,000,000

Consolidated Balance Sheets - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016
Current assets:
Cash and cash equivalents	$ 26,584	$ 24,289
Marketable securities available-for-sale	165,270	57,126
Accounts and other receivables	854	1,342
Inventories	312
Intangible assets, net	1,306
Prepaid expenses and other current assets	3,697	6,842
Total current assets	198,023	89,599
Property and equipment, net	16,619	17,174
Goodwill	2,244	1,971
Restricted cash	629	602
Other assets	1,270	334
Total assets	218,785	109,680
Current liabilities:
Accounts payable	4,539	3,796
Accrued research and development	4,359	5,048
Accrued liabilities	9,695	11,192
Total current liabilities	18,593	20,036
Other long-term liabilities	643	443
Total liabilities	19,236	20,479
Commitments and contingencies (Note 9)
Stockholders’ equity:
Preferred stock: $0.001 par value; 5,000 shares authorized at December 31, 2017 and December 31, 2016; no shares issued and outstanding at December 31, 2017 and December 31, 2016
Common stock: $0.001 par value; 139,000 and 69,500 shares authorized at December 31, 2017 and 2016, respectively; 61,533 and 38,599 shares issued and outstanding at December 31, 2017 and 2016, respectively	62	39
Additional paid-in capital	1,107,693	904,957
Accumulated other comprehensive loss	(881)	(3,624)
Accumulated deficit	(907,325)	(812,171)
Total stockholders’ equity	199,549	89,201
Total liabilities and stockholders’ equity	$ 218,785	$ 109,680

Consolidated Balance Sheets (Parenthetical) - $ / shares	Dec. 31, 2017	Dec. 31, 2016
Statement Of Financial Position [Abstract]
Preferred stock, par value	$ 0.001	$ 0.001
Preferred stock, shares authorized	5,000,000	5,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value	$ 0.001	$ 0.001
Common stock, shares authorized	139,000,000	69,500,000
Common stock, shares issued	61,533,000	38,599,000
Common stock, shares outstanding	61,532,812	38,599,000

Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Revenues:
Collaboration revenue		$ 9,778	$ 2,765
Grant revenue	$ 295	381	683
Service and license revenue	32	884	602
Total revenues	327	11,043	4,050
Operating expenses:
Amortization of intangible assets	1,194
Research and development	64,988	84,493	86,943
Selling, general and administrative	27,367	37,257	22,180
Restructuring	2,783
Total operating expenses	96,332	121,750	109,123
Loss from operations	(96,005)	(110,707)	(105,073)
Other income (expense):
Interest income	1,337	755	205
Interest expense			(572)
Other (expense) income, net	(486)	(2,492)	317
Loss on extinguishment of debt			(1,671)
Net loss	$ (95,154)	$ (112,444)	$ (106,794)
Basic and diluted net loss per share	$ (1.81)	$ (2.92)	$ (3.25)
Weighted average shares used to compute basic and diluted net loss per share	52,613	38,506	32,881

Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Statement Of Income And Comprehensive Income [Abstract]
Net loss	$ (95,154)	$ (112,444)	$ (106,794)
Other comprehensive income (loss), net of tax:
Unrealized (loss) gain on marketable securities available-for-sale	(83)	(8)	11
Cumulative foreign currency translation adjustments	2,826	(686)	(1,272)
Total other comprehensive income (loss)	2,743	(694)	(1,261)
Total comprehensive loss	$ (92,411)	$ (113,138)	$ (108,055)

Consolidated Statements of Stockholders' Equity - USD ($) shares in Thousands, $ in Thousands	Total	Common Stock	Preferred Stock	Additional Paid-in Capital	Accumulated Other Comprehensive Loss	Accumulated Deficit
Beginning Balances at Dec. 31, 2014	$ 100,482	$ 26		$ 695,058	$ (1,669)	$ (592,933)
Beginning Balances (in shares) at Dec. 31, 2014		26,307	43
Conversion of Preferred Stock	2	$ 5		(3)
Conversion of Preferred Stock (in shares)		4,343	(43)
Issuance (withholding) of common stock upon exercise of stock options and restricted stock awards, net	531			531
Issuance (withholding) of common stock upon exercise of stock options and restricted stock awards, net (in shares)		37
Issuance of common stock under Employee Stock Purchase Plan	291			291
Issuance of common stock under Employee Stock Purchase Plan (in shares)		23
Issuance of common stock, net of issuance costs	183,897	$ 7		183,890
Issuance of common stock, net of issuance costs (in shares)		7,353
Warrants exercised	228			228
Warrants exercised (in shares)		383
Stock compensation expense	9,703			9,703
Total other comprehensive loss	(1,261)				(1,261)
Net loss	(106,794)					(106,794)
Ending Balances at Dec. 31, 2015	187,079	$ 38		889,698	(2,930)	(699,727)
Ending Balances (in shares) at Dec. 31, 2015		38,446
Issuance (withholding) of common stock upon exercise of stock options and restricted stock awards, net	(83)	$ 1		(84)
Issuance (withholding) of common stock upon exercise of stock options and restricted stock awards, net (in shares)		107
Issuance of common stock under Employee Stock Purchase Plan	615			615
Issuance of common stock under Employee Stock Purchase Plan (in shares)		46
Stock compensation expense	14,728			14,728
Total other comprehensive loss	(694)				(694)
Net loss	(112,444)					(112,444)
Ending Balances at Dec. 31, 2016	89,201	$ 39		904,957	(3,624)	(812,171)
Ending Balances (in shares) at Dec. 31, 2016		38,599
Issuance (withholding) of common stock upon exercise of stock options and restricted stock awards, net	1,613			1,613
Issuance (withholding) of common stock upon exercise of stock options and restricted stock awards, net (in shares)		262
Issuance of common stock under Employee Stock Purchase Plan	293			293
Issuance of common stock under Employee Stock Purchase Plan (in shares)		84
Issuance of common stock, net of issuance costs	185,936	$ 23		185,913
Issuance of common stock, net of issuance costs (in shares)		22,588
Stock compensation expense	14,917			14,917
Total other comprehensive loss	2,743				2,743
Net loss	(95,154)					(95,154)
Ending Balances at Dec. 31, 2017	$ 199,549	$ 62		$ 1,107,693	$ (881)	$ (907,325)
Ending Balances (in shares) at Dec. 31, 2017		61,533

Consolidated Statements of Cash Flows - USD ($)	12 Months Ended
Consolidated Statements of Cash Flows - USD ($)	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Operating activities
Net loss	$ (95,154,000)	$ (112,444,000)	$ (106,794,000)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	3,244,000	2,257,000	1,365,000
Write-off of assets in progress		862,000
(Gain) loss on disposal of property and equipment	(10,000)	91,000	46,000
Accretion of discounts and amortization of premiums on marketable securities	(193,000)	178,000	660,000
Reversal of deferred rent upon lease amendment	(209,000)
Accretion of debt discount related to debt financing			(115,000)
Cash-settled portion of stock compensation expense	0	602,000	387,000
Stock compensation expense	14,917,000	14,126,000	9,316,000
Amortization of intangible assets	1,194,000
Loss on extinguishment of debt			1,671,000
Changes in operating assets and liabilities:
Accounts and other receivables	488,000	52,000	(667,000)
Inventories	(312,000)
Prepaid expenses and other current assets	(1,830,000)	560,000	1,631,000
Restricted cash and other assets	(936,000)	(103,000)	(211,000)
Accounts payable	(1,915,000)	1,181,000	1,246,000
Accrued liabilities and other long term liabilities	3,198,000	(11,759,000)	9,017,000
Deferred revenues		(2,654,000)	(10,111,000)
Net cash used in operating activities	(77,518,000)	(107,051,000)	(92,559,000)
Investing activities
Purchases of marketable securities	(227,672,000)	(126,754,000)	(208,936,000)
Proceeds from maturities of marketable securities	119,638,000	220,760,000	130,110,000
Purchases of property and equipment, net	(669,000)	(7,757,000)	(6,970,000)
Net cash (used in) provided by investing activities	(108,703,000)	86,249,000	(85,796,000)
Financing activities
Proceeds from issuances of common stock, net	185,936,000		183,897,000
Payment of debt			(10,988,000)
Proceeds (withholding) from exercise of stock options and restricted stock awards, net	1,613,000	(84,000)	531,000
Proceeds from Employee Stock Purchase Plan	293,000	615,000	291,000
Proceeds from exercise of warrants			228,000
Net cash provided by financing activities	187,842,000	531,000	173,959,000
Effect of exchange rate changes on cash and cash equivalents	674,000	(252,000)	(303,000)
Net increase (decrease) in cash and cash equivalents	2,295,000	(20,523,000)	(4,699,000)
Cash and cash equivalents at beginning of year	24,289,000	44,812,000	49,511,000
Cash and cash equivalents at end of year	26,584,000	24,289,000	44,812,000
Supplemental disclosure of cash flow information
Cash paid during the year for interest			720,000
Accrual for litigation settlement and insurance recovery (Note 9)		4,975,000
Release of accrual for litigation settlement and insurance recovery (Note 9)	4,975,000
Non-cash investing and financing activities:
Disposal of fully depreciated property and equipment	86,000	2,354,000	1,436,000
Net change in unrealized (loss) gain on marketable securities	$ (83,000)	(8,000)	$ 11,000
Astra Zeneca
Supplemental disclosure of cash flow information
Return of unused development funding to AstraZeneca AB (Note 10)		7,200,000
Milestone payment from AstraZeneca AB (Note 10)		$ 7,200,000

Organization

12 Months Ended

Dec. 31, 2017

Organization Consolidation And Presentation Of Financial Statements [Abstract]

Organization

1.	Organization

Dynavax Technologies Corporation (“we,” “our,” “us,” “Dynavax” or the “Company”), is a fully-integrated biopharmaceutical company focused on leveraging the power of the body’s innate and adaptive immune responses through toll-like receptor (“TLR”) stimulation. Our first commercial product, HEPLISAV-B™ (Hepatitis B Vaccine (Recombinant), Adjuvanted), was approved by the United States Food and Drug Administration (“FDA”) in November 2017 for prevention of infection caused by all known subtypes of hepatitis B virus in adults age 18 years and older. Our development efforts are primarily focused on stimulating the innate immune response to treat cancer in combination with other immunomodulatory agents. Our lead investigational immuno-oncology products are SD-101, currently being evaluated in Phase 2 clinical studies, and DV281, in a Phase 1 safety study. 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.

Summary of Significant Accounting Policies

12 Months Ended

Dec. 31, 2017

Accounting Policies [Abstract]

Summary of Significant Accounting Policies

2.	Summary of Significant Accounting Policies

Basis of Presentation and Principles of Consolidation

The consolidated financial statements are prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) and include our accounts and those of our wholly-owned subsidiary, Dynavax GmbH located in Düsseldorf, Germany. All significant intercompany accounts and transactions among the entities have been eliminated from the consolidated financial statements. We operate in one business segment: the discovery and development of biopharmaceutical products.

Liquidity and Financial Condition

As of December 31, 2017, we had cash, cash equivalents and marketable securities of $191.9 million.

We have incurred significant operating losses and negative cash flows from our operations since our inception and we expect to incur significant expenses and operating losses for the foreseeable future as we continue to invest in (a) commercialization of HEPLISAV-B, (b) clinical trials and other development, manufacturing and regulatory activities for our immuno-oncology product candidates and (c) discovery research and development. Until we can generate a sufficient amount of revenue, if any, we will need to finance our operations through strategic alliance and licensing arrangements and/or future public or private debt and equity financings. Adequate financing may not be available to us on acceptable terms, or at all. If adequate funds are not available when needed, we may need to delay, reduce the scope of or put on hold one or more programs while we seek strategic alternatives, which could have an adverse impact on our ability to achieve our intended business objectives.

Our ability to raise additional capital in the equity and debt markets, should we choose to do so, is dependent on a number of factors, including, but not limited to, the market demand for our common stock, which itself is subject to a number of development and business risks and uncertainties, our creditworthiness and the uncertainty that we would be able to raise such additional capital at a price or on terms that are favorable to us.

Use of Estimates

The preparation of financial statements in conformity with GAAP requires management to make informed estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Management’s estimates are based on historical information available as of the date of the consolidated financial statements and various other assumptions we believe are reasonable under the circumstances. Actual results could differ materially from these estimates.

Foreign Currency Translation

We consider the local currency to be the functional currency for our international subsidiary, Dynavax GmbH. Accordingly, assets and liabilities denominated in this foreign currency are translated into U.S. dollars using the exchange rate in effect on the balance sheet date. Revenues and expenses are translated at average exchange rates prevailing during the year. Currency translation adjustments arising from period to period are charged or credited to accumulated other comprehensive income (loss) in stockholders’ equity. For the years ended December 31, 2017, 2016 and 2015, we reported an unrealized gain (loss) of $2.8 million, $(0.7) million and $(1.3) million, respectively. Realized gains and losses resulting from currency transactions are included in other (expense) income in the consolidated statements of operations. For the years ended December 31, 2017, 2016 and 2015, we reported a (loss) gain of $(0.6) million, $0.2 million and $0.1 million, respectively, resulting from currency transactions in our consolidated statements of operations.

Cash, Cash Equivalents and Marketable Securities

We consider all liquid investments purchased with an original maturity of three months or less and that can be liquidated without prior notice or penalty to be cash equivalents. Management determines the appropriate classification of marketable securities at the time of purchase. In accordance with our investment policy, we invest in short-term money market funds, U.S. Treasuries, U.S. government agency securities and corporate debt securities. We believe these types of investments are subject to minimal credit and market risk.

We have classified our entire investment portfolio as available-for-sale and available for use in current operations and accordingly have classified all investments as short-term. Available-for-sale securities are carried at fair value based on inputs that are observable, either directly or indirectly, such as quoted market prices for similar securities; 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 securities, with unrealized gains and losses included in accumulated other comprehensive loss in stockholders’ equity. Realized gains and losses and declines in value, if any, judged to be other than temporary on available-for-sale securities are included in interest income or expense. The cost of securities sold is based on the specific identification method. Management assesses whether declines in the fair value of investment securities are other than temporary. In determining whether a decline is other than temporary, management considers the following factors:

•

whether the investment has been in a continuous realized loss position for over 12 months;

•

the duration to maturity of our investments;

•

our intention and ability to hold the investment to maturity and if it is not more likely than not that we will be required to sell the investment before recovery of the amortized cost bases;

•

the credit rating, financial condition and near-term prospects of the issuer; and

•

the type of investments made.

To date, there have been no declines in fair value that have been identified as other than temporary.

Concentration of Credit Risk and Other Risks and Uncertainties

We determine our segments based on the way we organize our business by making operating decisions and assessing performance. In fiscal years 2017, 2016 and 2015, 90%, 92% and 85% of our revenues were earned in the United States, respectively, and the remaining revenues were earned in Germany. As of December 31, 2017 and 2016, 15% and 17%, respectively, of our long-lived assets were located in the United States and the remaining long-lived assets were located in Germany.

Financial instruments that are subject to concentration of credit risk consist primarily of cash equivalents, marketable securities and accounts receivable. Our policy is to invest cash in institutional money market funds and marketable securities of the U.S. government and corporate issuers with high credit quality to limit the amount of credit exposure. We currently maintain a portfolio of cash equivalents and marketable securities in a variety of securities, including short-term money market funds, U.S. Treasuries, U.S. government agency securities and corporate debt securities. We have not experienced any losses on our cash equivalents and marketable securities.

Our product candidates will require approval from the FDA and foreign regulatory agencies before commercial sales can commence. There can be no assurance that our products will receive any of these required approvals. The denial or delay of such approvals may have a material adverse impact on our business and may impact our business in the future. In addition, after the approval of HEPLISAV-B by the FDA, there is still an ongoing risk of adverse events that did not appear during the drug approval process.

We are subject to risks common to companies in the biopharmaceutical industry, including, but not limited to, new technological innovations, clinical development risk, establishment of appropriate commercial partnerships, protection of proprietary technology, compliance with government and environmental regulations, uncertainty of market acceptance of product candidates, product liability, the volatility of our stock price and the need to obtain additional financing.

Inventories

We consider regulatory approval of product candidates to be uncertain and product manufactured prior to regulatory approval may not be sold unless regulatory approval is obtained. As such, the manufacturing costs for product candidates incurred prior to regulatory approval are not capitalized as inventory but are expensed as research and development costs. We begin capitalization of these inventory related costs once regulatory approval is obtained.

HEPLISAV-B was approved by the FDA on November 9, 2017, at which time we began to capitalize inventory costs associated with HEPLISAV-B. Prior to FDA approval of HEPLISAV-B, all costs related to the manufacturing of HEPLISAV-B that could potentially be available to support the commercial launch of our products, were charged to research and development expense in the period incurred as there was no alternative future use. At December 31, 2017, we had approximately 250,000 vials of pre-commercialization inventory of HEPLISAV-B which we expect to sell over at least the next nine months. We periodically analyze our inventory levels, and write down inventory that has become obsolete, inventory that has a cost basis in excess of its estimated realizable value and inventory in excess of expected sales requirements. Expired inventory will be disposed of and the related costs written off.

Intangible Assets

We record definite-lived intangible assets related to certain capitalized milestone payments. After determining that the pattern of future cash flows associated with intangible asset could not be reliably estimated with a high level of precision, we concluded that these assets are amortized on a straight-line basis over their remaining useful lives, which are estimated to be the remaining patent life. If our estimate of HEPLISAV-B’s useful life is shorter than the remaining patent life, then the shorter period is used. We assess our intangible assets for impairment if indicators are present or changes in circumstance suggest that impairment may exist. No impairment of intangible assets has been identified during 2017.

Long-Lived Assets

Property and equipment are recorded at cost. Depreciation is computed using the straight-line method over the estimated useful lives of the respective assets. Additions, major renewals and improvements are capitalized and repair and maintenance costs are charged to expense as incurred. Leasehold improvements are amortized over the remaining life of the initial lease term or the estimated useful lives of the assets, whichever is shorter.

We evaluate the carrying value of long-lived assets, whenever events or changes in business circumstances or our planned use of long-lived assets indicate, based on undiscounted future operating cash flows, that their carrying amounts may not be fully recoverable or that their useful lives are no longer appropriate. When an indicator of impairment exists, undiscounted future operating cash flows of long-lived assets are compared to their respective carrying value. If the carrying value is greater than the undiscounted future operating cash flows of long-lived assets, the long-lived assets are written down to their respective fair values and an impairment loss is recorded. Fair value is determined primarily using the discounted cash flows expected to be generated from the use of assets. Significant management judgment is required in the forecast of future operating results that are used in the preparation of expected cash flows. No impairments of tangible assets have been identified during the years presented.

Goodwill

Our goodwill balance relates to our April 2006 acquisition of Dynavax GmbH. Goodwill represents the excess purchase price over the fair value of tangible and intangible assets acquired and liabilities assumed. Goodwill is not amortized but is subject to an annual impairment test. In performing its goodwill impairment review, we assess qualitative factors to determine whether it is more likely than not that the fair value of its reporting unit is less than its carrying amount, including goodwill. The qualitative factors include, but are not limited to macroeconomic conditions, industry and market considerations, and the overall financial performance of the Company. If after assessing the totality of these qualitative factors, we determine that it is not more likely than not that the fair value of its reporting unit is less than its carrying amount, then no additional assessment is deemed necessary. Otherwise, we will proceed to perform a test for goodwill impairment. The first step involves comparing the estimated fair value of the related reporting unit against its carrying amount including goodwill. If the carrying amount exceeds the fair value, impairment is calculated and recorded as a charge in the consolidated statements of operations. We determined that we have only one operating segment and there are no components of that operating segment that are deemed to be separate reporting units such that we have one reporting unit for purposes of our goodwill impairment testing. We evaluate goodwill for impairment on an annual basis and on an interim basis if events or changes in circumstances between annual impairment tests indicate that the asset might be impaired. No impairments have been identified for the years presented.

Revenue Recognition

We recognize revenues from collaborations, grants and fees from services and licenses when 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. We enter into license and manufacturing agreements and collaborative research and development arrangements with pharmaceutical and biotechnology partners that may involve multiple deliverables. Each deliverable in the arrangement is evaluated to determine whether it meets the criteria to be accounted for as a separate unit of accounting. Analyzing the arrangement to identify deliverables requires the use of judgment, and each deliverable may be an obligation to deliver services, a right or license to use an asset, or another performance obligation.

Non-refundable upfront fees received for license and collaborative agreements and other payments under collaboration agreements where we have continuing performance obligations related to the payments are deferred and recognized on a ratable basis over our estimated performance period. Management makes its best estimate of the period over which we expect to fulfill our performance obligations. We recognize revenues for costs that are reimbursed under collaborative agreements as the related research and development costs are incurred.

Our license and collaboration agreements with our partners may provide for payments to be paid to us upon the achievement of milestones. Milestones are considered to be substantive if all of the following conditions are met: (i) work is contingent on 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; (ii) it relates solely to past performance and (iii) it is reasonable relative to all the deliverable and payment terms within the arrangement. Milestone payments that are contingent upon the achievement of substantive at-risk performance criteria are recognized in full upon achievement of those milestones.

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. Royalty revenue is recognized when all revenue recognition criteria have been satisfied.

Revenue from government and private agency grants is recognized as the related research expenses are incurred and to the extent that funding is approved.

Research and Development Expenses and Accruals

Research and development expenses include personnel and facility-related expenses, outside contracted services including clinical trial costs, manufacturing and process development costs, research costs and other consulting services and non-cash stock-based compensation. Research and development costs are expensed as incurred. Amounts due under contracts with third parties may be either fixed fee or fee for service, and may include upfront payments, monthly payments and payments upon the completion of milestones or receipt of deliverables. Non-refundable advance payments under agreements are capitalized and expensed as the related goods are delivered or services are performed.

We contract with third parties to perform various clinical trial activities in the on-going development of potential products. The financial terms of these agreements are subject to negotiation, vary from contract to contract and may result in uneven payment flows to our vendors. Payments under the contracts depend on factors such as the achievement of certain events, successful enrollment of patients, and completion of portions of the clinical trial or similar conditions. Our accrual for clinical trials is based on estimates of the services received and efforts expended pursuant to contracts with clinical trial centers and clinical research organizations. We may terminate these contracts upon written notice and we are generally only liable for actual effort expended by the organizations to the date of termination, although in certain instances we may be further responsible for termination fees and penalties. The Company estimates its research and development expenses and the related accrual as of each balance sheet date based on the facts and circumstances known to the Company at that time. There have been no material adjustments to the Company’s prior period accrued estimates for clinical trial activities through December 31, 2017.

Stock-Based Compensation

Stock-based compensation expense for restricted stock units and stock options is estimated at the grant date based on the award’s estimated fair value and is recognized on a straight-line basis over the award’s requisite service period, assuming estimated forfeiture rates. Fair value of restricted stock units is determined at the date of grant using the Company’s closing stock price. Our determination of the fair value of stock options on the date of grant using an option-pricing model is affected by our stock price, as well as assumptions regarding a number of subjective variables. We selected the Black-Scholes option pricing model as the most appropriate method for determining the estimated fair value-based measurement of our stock options. The Black-Scholes model requires the use of highly subjective assumptions which determine the fair value-based measurement of stock options. These assumptions include, but are not limited to, our expected stock price volatility over the term of the awards, and projected employee stock option exercise behaviors. In the future, as additional empirical evidence regarding these input estimates becomes available, we may change or refine our approach of deriving these input estimates. These changes could impact our fair value of stock options granted in the future. Changes in the fair value of stock awards could materially impact our operating results.

Our current estimate of volatility is based on the historical volatility of our stock price. To the extent volatility in our stock price increases in the future, our estimates of the fair value of options granted in the future could increase, thereby increasing stock-based compensation cost recognized in future periods. We derive the expected term assumption primarily based on our historical settlement experience, while giving consideration to options that have not yet completed a full life cycle. Stock-based compensation cost is recognized only for awards ultimately expected to vest. Our estimate of the forfeiture rate is based primarily on our historical experience. To the extent we revise this estimate in the future, our share-based compensation cost could be materially impacted in the period of revision.

Income Taxes

We account for income taxes using the asset and liability method, under which deferred tax assets and liabilities are determined based on the differences between the financial reporting and tax basis of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. Tax law and rate changes are reflected in income in the period such changes are enacted. The Company includes interest and penalties related to income taxes, including unrecognized tax benefits, within income tax expense.

On December 22, 2017, President Trump signed U.S. tax reform legislation, commonly referred to as the Tax Cuts and Jobs Act (the “Tax Act”), which became effective January 1, 2018. The Tax Act significantly changes the fundamentals of U.S. corporate income taxation by, among many other things, reducing the U.S. federal corporate income tax rate to 21%, converting to a territorial tax system, and creating various income inclusion and expense limitation provisions. We have performed a review of the Tax Act, and based on information available at December 31, 2017, recorded certain provisional amounts related to the revaluation of our deferred taxes and the realization of certain tax credit carryforwards. Due to insufficient guidance on certain aspects of the Tax Act, such as officer’s compensation, as well as uncertainty around the GAAP treatment associated with many other parts of the Tax Act, such as the implementation of certain international provisions, we cannot be certain that all deferred tax assets and liabilities have been established for the future effects of the legislation. Therefore, the final accounting for these provisions is subject to change as further information becomes available and further analysis is complete. Additionally, given the uncertainty and complexity of these new international tax regimes, we are continuing to evaluate how these provisions will be accounted for under U.S. generally accepted accounting principles; therefore, we have not yet adopted an accounting policy for treating the effects of these provisions as either a component of income tax expense in the period the tax arises, or through adjusting our deferred tax assets and liabilities to account for the estimated future impact of the special international tax regimes.

Significant judgment is required in determining the Company’s provision for income taxes, deferred tax assets and liabilities and the valuation allowance recorded against net deferred tax assets. We assess the likelihood that deferred tax assets will be recovered as deductions from future taxable income. The evaluation of the need for a valuation allowance is performed on a jurisdiction-by-jurisdiction basis, and includes a review of all available positive and negative evidence. Factors reviewed include projections of pre-tax book income for the foreseeable future, determination of cumulative pre-tax book income after permanent differences, earnings history, and reliability of forecasting. We have provided a full valuation allowance on our deferred tax assets at December 31, 2017 and 2016 because we believe it is more likely than not that our deferred tax assets will not be realized as of December 31, 2017, and 2016.

The Company is required to file federal and state income tax returns in the United States and Germany. The preparation of these income tax returns requires the Company to interpret the applicable tax laws and regulations in effect on such jurisdictions, which could impact the amount of tax paid by us. An amount is accrued for the estimate of additional tax liabilities, including interest and penalties, for any uncertain tax positions taken or expected to be taken in an income tax return. We update the accrual for uncertain tax positions as more definitive information becomes available.

Restructuring

Restructuring costs are comprised of severance costs related to workforce reductions. We recognize restructuring charges when the liability is incurred. Employee termination benefits are accrued at the date management has committed to a plan of termination and employees have been notified of their termination dates and expected severance payments.

Recent Accounting Pronouncements

Accounting Standards Update 2014-09

In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standard Update No. 2014-09, Revenue from Contracts with Customers (“ASU 2014-09”), which introduced Accounting Standards Codification (“ASC”) 606, Revenue Recognition, Revenue from Contracts with Customers, which amends the guidance in former ASC 605, Revenue Recognition, and provides a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and will supersede most current revenue recognition guidance. In July 2015, the FASB deferred the effective date for annual reporting periods beginning after December 15, 2017 (including interim periods within those periods), with early application permitted. The FASB issued supplemental adoption guidance and clarification to ASU 2014-09 in March 2016, April 2016 and May 2016 within ASU 2016-08 "Revenue From Contracts With Customers: Principal vs. Agent Considerations," ASU 2016-10 "Revenue From Contracts with Customers: Identifying Performance Obligations and Licensing," and ASU 2016-12 "Revenue from Contracts with Customers: Narrow-Scope Improvements and Practical Expedients," respectively. We will adopt ASU 2014-09 on January 1, 2018 using the modified retrospective transition method applied to those contracts which were not completed as of that date. We have completed our analysis on the adoption of ASU 2014-09 of our revenues, identifying that there are no remaining performance obligations as of the adoption date. Based on this assessment, adopting this standard will not have a material impact on our consolidated financial statements and we do not expect to record any adjustment to accumulated deficit.

Accounting Standards Update 2016-02

In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) which outlines a comprehensive lease accounting model and supersedes the current lease guidance. The ASU requires companies to recognize lease right-of-use assets and lease liabilities by lessees for all operating leases with lease terms greater than 12 months. It also changes the definition of a lease and expands the disclosure requirements of lease arrangements. The ASU is effective for annual periods beginning after December 15, 2018 and interim periods therein on a modified retrospective basis with early adoption permitted. We are currently evaluating the impact this guidance will have on our consolidated financial statements and believe the adoption will modify our analyses and disclosures of lease agreements considering operating leases are a significant portion of the Company’s total lease commitments.

Accounting Standards Update 2016-18

In November 2016, the FASB issued ASU 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash (a consensus of the FASB Emerging Issues Task Force). This ASU requires that the reconciliation of the beginning-of-period and end-of-period amounts shown in the statement of cash flows include cash, cash equivalents and amounts generally described as restricted cash or restricted cash equivalents. The amendments in this update will be applied using a retrospective transition method to each period presented. The ASU is effective for annual periods beginning after December 15, 2018 with early adoption permitted. The adoption of this standard is not expected to have a material impact on our consolidated financial statements.

Accounting Standards Update 2017-04

In January 2017, the FASB issued ASU 2017-04, Intangibles – Goodwill and other (Topic 350), which simplifies the test for goodwill impairment by eliminating a previous requirement to calculate the implied fair value of goodwill to measure a goodwill impairment charge. The ASU is effective for annual periods beginning after December 15, 2019 with early adoption permitted. The adoption is not expected to have a material impact on our consolidated financial statements.

Accounting Standards Update 2017-09

In May 2017, the FASB issued ASU 2017-09, Compensation – Stock Compensation (Topic 718): Scope of Modification Accounting. The ASU provides guidance about which changes to the terms or conditions of a share-based payment award require an entity to apply modification accounting in Topic 718. The ASU is effective for annual periods beginning after December 15, 2017 with early adoption permitted. The adoption of this standard is not expected to have a material impact on our consolidated financial statements.

Fair Value Measurements

12 Months Ended

Dec. 31, 2017

Fair Value Disclosures [Abstract]

Fair Value Measurements

3.	Fair Value Measurements

The Company measures fair value 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 must maximize the use of observable inputs and minimize the use of unobservable inputs. The accounting 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 which are the following:

•

Level 1—Observable inputs, such as 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; therefore, requiring an entity to develop its own valuation techniques and assumptions.

Assets and liabilities are classified based on the lowest level of input that is significant to the fair value measurements. The Company reviews the fair value hierarchy classification on a quarterly basis. Changes in the ability to observe valuation inputs may result in a reclassification of levels for certain assets or liabilities within the fair value hierarchy. There were no transfers between Level 1 and Level 2 during the twelve months ended December 31, 2017 and 2016.

The carrying amounts of cash equivalents, accounts and other receivables, accounts payable and accrued liabilities are considered reasonable estimates of their respective fair value because of their short-term nature.

Recurring Fair Value Measurements

The following table represents the fair value hierarchy for our financial assets (cash equivalents and marketable securities) measured at fair value on a recurring basis (in thousands):

	Level 1		Level 2		Level 3		Total
December 31, 2017
Money market funds	$	22,543	$	-	$	-	$	22,543
U.S. Treasuries		-		45,534		-		45,534
U.S. government agency securities		-		86,820		-		86,820
Corporate debt securities		-		32,916		-		32,916
Total	$	22,543	$	165,270	$	-	$	187,813

	Level 1		Level 2		Level 3		Total
December 31, 2016
Money market funds	$	18,981	$	-	$	-	$	18,981
U.S. Treasuries		-		3,499		-		3,499
U.S. government agency securities		-		30,437		-		30,437
Corporate debt securities		-		24,941		-		24,941
Total	$	18,981	$	58,877	$	-	$	77,858

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.

U.S. Treasuries, U.S. Government agency securities and corporate debt securities are measured at fair value using Level 2 inputs. We review trading activity and pricing for these investments as of each 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 these inputs have been derived from observable market data. This approach results in the classification of these securities as Level 2 of the fair value hierarchy.

- 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 + Details

Cash, Cash Equivalents and Marketable Securities

12 Months Ended

Dec. 31, 2017

Cash Cash Equivalents And Short Term Investments [Abstract]

Cash, Cash Equivalents and Marketable Securities

4.	Cash, Cash Equivalents and Marketable Securities

Cash, cash equivalents and marketable securities consist of the following (in thousands):

	Amortized Cost		Unrealized Gains		Unrealized Losses			Estimated Fair Value
December 31, 2017
Cash and cash equivalents:
Cash	$	4,041	$	-	$	-		$	4,041
Money market funds		22,543		-		-			22,543
Total cash and cash equivalents		26,584		-		-			26,584
Marketable securities available-for-sale:
U.S. Treasuries		45,559		-		(25	)		45,534
U.S. government agency securities		86,860		-		(40	)		86,820
Corporate debt securities		32,931		-		(15	)		32,916
Total marketable securities available-for-sale		165,350		-		(80	)		165,270
Total cash, cash equivalents and marketable securities	$	191,934	$	-	$	(80	)	$	191,854
December 31, 2016
Cash and cash equivalents:
Cash	$	3,557	$	-	$	-		$	3,557
Money market funds		18,981		-		-			18,981
U.S. government agency securities		1,751		-		-			1,751
Total cash and cash equivalents		24,289		-		-			24,289
Marketable securities available-for-sale:
U.S. Treasuries		3,499		-		-			3,499
U.S. government agency securities		28,685		3		(2	)		28,686
Corporate debt securities		24,938		5		(2	)		24,941
Total marketable securities available-for-sale		57,122		8		(4	)		57,126
Total cash, cash equivalents and marketable securities	$	81,411	$	8	$	(4	)	$	81,415

The maturities of our marketable securities available-for-sale are as follows (in thousands):

	December 31, 2017
	Amortized Cost		Estimated Fair Value
Mature in one year or less	$	165,350	$	165,270
Mature after one year through two years		-		-
	$	165,350	$	165,270

There were no realized gains or losses from the sale of marketable securities in the years ended December 31, 2017, 2016 and 2015. All of our investments are classified as short-term and available-for-sale, as we consider them available to fund current operations and may not hold our investments until maturity.

Inventories

12 Months Ended

Dec. 31, 2017

Inventory Disclosure [Abstract]

Inventories

5.	Inventories

We began capitalizing inventory during the fourth quarter of 2017 in connection with the FDA’s approval of HEPLISAV-B on November 9, 2017, as the related costs were expected to be recoverable through the commercialization of the product. Prior to the FDA’s approval, costs to manufacture HEPLISAV-B were expensed as research and development expense as incurred, rather than capitalized as inventory as there was no alternative future use. At December 31, 2017, inventory consisted of work in progress of $0.3 million. There was no write down related to excess or expiring inventory during 2017.

Intangible Assets

12 Months Ended

Dec. 31, 2017

Goodwill And Intangible Assets Disclosure [Abstract]

Intangible Assets

6.	Intangible Assets

Intangible assets are related to certain capitalized milestone payments. The following table presents intangible assets (in thousands):

	December 31,
	2017			2016
Intangible assets	$	2,500		$	-
Less accumulated amortization		(1,194	)		-
Total	$	1,306		$	-

We recorded $1.2 million in amortization expense related to intangible assets during the year ended December 31, 2017. See Note 10. At December 31, 2017, the intangible assets have an estimated remaining useful life of two months. The $1.3 million balance will be fully amortized during the first quarter of 2018. No impairment of intangible assets has been identified during 2017.

Property and Equipment

12 Months Ended

Dec. 31, 2017

Property Plant And Equipment [Abstract]

Property and Equipment

7.	Property and Equipment

Property and equipment consist of the following (in thousands):

	Estimated Useful	December 31,
	Life (In years)	2017			2016
Manufacturing equipment	5-14	$	12,104		$	10,086
Lab equipment	5-13		6,686			6,280
Computer equipment	3		4,760			4,010
Furniture and fixtures	3-13		1,629			1,566
Leasehold improvements	5-8⁽¹⁾		10,873			8,942
Assets in progress			1,176			2,298
			37,228			33,182
Less accumulated depreciation and amortization			(20,609	)		(16,008	)
Total		$	16,619		$	17,174

(1)	Leasehold improvements are amortized over the remaining life of the initial lease term or the estimated useful lives of the assets, whichever is shorter.

Depreciation and amortization expense on property and equipment was $3.2 million, $2.3 million and $1.4 million for the years ended December 31, 2017, 2016 and 2015, respectively.

Current Accrued Liabilities and Accrued Research and Development

12 Months Ended

Dec. 31, 2017

Disclosure Component Of Current Accrued Liabilities And Accrued Research And Development [Abstract]

Current Accrued Liabilities and Accrued Research and Development

8.	Current Accrued Liabilities and Accrued Research and Development

Current accrued liabilities and accrued research and development consist of the following (in thousands):

	December 31,
	2017		2016
Payroll and related expenses	$	6,180	$	3,753
Legal expenses		346		275
Litigation settlements accrual (Note 9)		-		4,975
Third party research expenses		3,567		2,784
Third party development expenses		522		2,002
Other accrued liabilities		3,439		2,451
Total	$	14,054	$	16,240

Commitments and Contingencies

12 Months Ended

Dec. 31, 2017

Commitments And Contingencies Disclosure [Abstract]

Commitments and Contingencies

9.	Commitments and Contingencies

We lease our facilities in Berkeley, California (“Berkeley Lease”) and Düsseldorf, Germany (“Düsseldorf Lease”) under operating leases that expire in December 2025 and March 2023, respectively. In May 2017, we amended the Berkeley Lease to extend the term of the lease to expire in December 2025 and to terminate the lease of an adjacent building. The early termination of the adjacent building’s lease did not result in a termination fee as the lease rate under the amended Berkeley Lease was determined to not be above market rates. In addition, as a result of the early termination, we reversed the deferred rent liability of $0.2 million against rent expense in 2017. The amended Berkeley Lease provides for periods of escalating rent. The total cash payments over the life of the Berkeley Lease and Dusseldorf Lease is 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.

Total net rent expense related to our operating leases for the years ended December 31, 2017, 2016 and 2015, was $2.4 million, $2.2 million and $2.0 million, respectively. Deferred rent was $0.6 million and $0.3 million as of December 31, 2017 and 2016, respectively. Accrued loss on lease was $0.3 million as of December 31, 2016.

Future minimum payments under the non-cancelable portion of our operating leases and non-cancelable purchase commitments at December 31, 2017 are as follows (in thousands):

Year ending December 31,
2018	$	7,743
2019		2,559
2020		2,621
2021		2,549
2022		2,543
Thereafter		6,595
Total	$	24,610

During 2004, we established a letter of credit with Silicon Valley Bank as security for our Berkeley Lease in the amount of $0.4 million. The letter of credit remained outstanding as of December 31, 2017, and is collateralized by a certificate of deposit for $0.4 million, which has been included in restricted cash in the consolidated balance sheets as of December 31, 2017 and 2016. Under the terms of the Berkeley Lease, if the total amount of our cash, cash equivalents and marketable securities falls below $20 million for a period of more than 30 consecutive days during the lease term, the amount of the required security deposit will increase to $1.1 million, until such time as our projected cash and cash equivalents will exceed $20 million for the remainder of the lease term, or until our actual cash and cash equivalents remains above $20 million for a period of 12 consecutive months.

During 2004, we also established a letter of credit with Deutsche Bank as security for our Düsseldorf Lease in the amount of 0.2 million Euros. The letter of credit remained outstanding through December 31, 2017 and is collateralized by a certificate of deposit for 0.2 million Euros, which has been included in restricted cash in the consolidated balance sheets as of December 31, 2017 and 2016.

We have entered into material long-term commitments with commercial manufacturers for the supply of HEPLISAV-B. To the extent these long-term commitments are non-cancelable, they are reflected in the above table.

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 and 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 also rely on and have entered into agreements with research institutions, contract research organizations and clinical investigators as well as clinical material manufacturers. 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.

In conjunction with a financing arrangement with Symphony Dynamo, Inc. and Symphony Dynamo Holdings LLC (“Holdings”) in November 2009, we agreed to make contingent cash payments to Holdings equal to 50% of the first $50 million from any upfront, pre-commercialization milestone or similar payments received by us from any agreement with any third party with respect to the development and/or commercialization of cancer and hepatitis C therapies originally licensed to Symphony Dynamo, Inc., including SD-101. We have made no payments and have not recorded a liability as of December 31, 2017.

From time to time, we may be involved in claims, suits, and proceedings arising from the ordinary course of our business, including actions with respect to intellectual property claims, commercial claims, and other matters. Such claims, suits, and proceedings are inherently uncertain and their results cannot be predicted with certainty. Regardless of the outcome, such legal proceedings can have an adverse impact on us because of legal costs, diversion of management resources, and other factors. In addition, it is possible that a resolution of one or more such proceedings could result in substantial damages, fines, penalties or orders requiring a change in our business practices, which could in the future materially and adversely affect our financial position, financial statements, results of operations, or cash flows in a particular period.

On September 7, 2016, we entered into a Stipulation of Settlement to settle the case entitled In re Dynavax Technologies Securities Litigation filed in 2013. The settlement, which was approved by the U.S. District Court for the Northern District of California on February 6, 2017, provided for a payment of $4.1 million by us and results in a dismissal and release of all claims against all defendants, including us. The settlement was paid by our insurers in February 2017. The $4.1 million accrued liability and corresponding $4.1 million prepaid expenses and other current assets reflected in our consolidated balance sheet as of December 31, 2016 were released during the first quarter of 2017.

On October 24, 2017, we entered into a Stipulation of Settlement to settle the derivative case filed in 2013. The settlement provided for a payment of $0.9 million by us and results in a dismissal and release of all claims against all defendants, including us. The settlement was paid by our insurers in November 2017. The $0.9 million accrued liabilities and corresponding $0.9 million prepaid expenses and other current assets reflected in our consolidated balance sheets as of December 31, 2016 were released during the fourth quarter of 2017.

Amounts recorded for contingencies can result from a complex series of judgments about future events and uncertainties and can rely heavily on estimates and assumptions. For information about the risks associated with estimates and assumptions, see Use of Estimates in Note 2.

Collaborative Research, Development and License Agreements

12 Months Ended

Dec. 31, 2017

Research And Development [Abstract]

Collaborative Research, Development and License Agreements

10.	Collaborative Research, Development and License Agreements

AstraZeneca

Pursuant to a research collaboration and license agreement with AstraZeneca AB (AstraZeneca”), as amended, we discovered and performed initial clinical development of AZD1419, a TLR9 agonist product candidate for the treatment of asthma. In June 2016, all of our remaining performance obligations under our agreement with AstraZeneca were completed.

In November 2016, AstraZeneca initiated the Phase 2a trial of AZD1419 in asthma patients. Upon AstraZeneca’s initiation of the Phase 2a trial, we earned a milestone payment of $7.2 million, which was offset against $7.4 million in unused development funding previously advanced by AstraZeneca. We recognized the $7.2 million milestone as revenue during the fourth quarter of 2016. The remaining balance of unused development funding, net of the $7.2 million milestone payment, was $0.2 million which was paid during the first quarter of 2017. No liability related to unused development funding remains on the accompanying consolidated balance sheet as of December 31, 2017.

Under the terms of the agreement, as amended, we are eligible to receive up to approximately $100 million in additional milestone payments, based on the achievement of certain development and regulatory objectives. Additionally, upon commercialization of AZD1419, we are eligible to receive tiered royalties ranging from the mid to high single-digits 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.

The following table summarizes the revenues earned under our agreement with AstraZeneca, included as collaboration revenue in our consolidated statements of operations (in thousands):


	Year ended December 31,
	2017		2016		2015
Initial and milestone payment	$	-	$	7,722	$	238
Subsequent payment		-		1,953		892
Performance of research activities		-		103		1,635
Total	$	-	$	9,778	$	2,765

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.

Coley Pharmaceutical Group, Inc.

In June 2007, we entered into a license agreement with Coley Pharmaceutical Group, Inc. (“Coley”), under which Coley granted us a non-exclusive, royalty bearing license to patents, with the right to grant sublicenses for HEPLISAV-B. Under the terms of this agreement, we are responsible for royalties in the low single-digit based on product sales arising from the license. We met one of the regulatory milestones upon FDA approval of HEPLISAV-B in November 2017 and recorded $2.5 million as an intangible asset on the consolidated balance sheets. See Note 6. At December 31, 2017, the $2.5 million payment due to Coley was included in accounts payable on the consolidated balance sheet. The agreement continues in effect through February 2018, at which time the license becomes a perpetual, irrevocable, fully paid-up and royalty free license. No further milestone payments are expected prior to termination.

Long-Term Debt

12 Months Ended

Dec. 31, 2017

Debt Disclosure [Abstract]

Long-Term Debt

11.	Long-Term Debt

Note Purchase Agreement

In October 2016, we entered into a Note Purchase Agreement pursuant to which the Company would borrow $100.0 million upon approval of HEPLISAV-B. The Company paid the prospective lender $1.0 million upon entering into the Note Purchase Agreement and incurred additional expenses of $1.6 million in securing the Note Purchase Agreement. No notes were ultimately sold by the Company under the Note Purchase Agreement.

In December 2016, the Company terminated the Note Purchase Agreement and paid a termination fee of $1.5 million. The $1.0 million paid upon entering in the note purchase agreement and $1.5 million termination fee are included in other expense in the consolidated statements of operations. The additional expenses of $1.6 million related to securing the Note Purchase Agreement are included in loss from operations in the consolidated statement of operations.

Hercules Loan and Security Agreement

In December 2014, we entered into a Loan and Security Agreement (“Loan Agreement”) with Hercules Technology Growth Capital, Inc. (“Hercules”) under which we could borrow up to $40.0 million in two tranches. We drew down the first tranche of $10.0 million upon closing of the transaction on December 23, 2014. The second tranche, of $30.0 million, was available to be drawn at our option any time prior to September 30, 2015. No additional amounts were drawn down under the terms of the Loan Agreement.

In September 2015, we repaid all outstanding amounts under the Loan Agreement, at which time our obligations under the Loan Agreement terminated and Hercules released its security interests in all collateral under the Loan Agreement. We paid to Hercules $11.0 million, which consisted of $10.0 million outstanding principal, accrued but unpaid interest of $38 thousand, end of term fee of $0.8 million and prepayment charges of $0.2 million. We recognized the repayment to be a substantial modification to the debt instrument and applied debt extinguishment accounting to record a one-time loss on extinguishment of debt in the amount of $1.7 million.

Net Loss Per Share

12 Months Ended

Dec. 31, 2017

Earnings Per Share [Abstract]

Net Loss Per Share

12.	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 giving effect to all potentially dilutive common shares using the treasury-stock method. For purposes of this calculation, outstanding stock options and stock awards are considered to be potentially dilutive common shares and are only included in the calculation of diluted net loss per share when their effect is dilutive.

	December 31,
	2017			2016			2015
Basic and diluted net loss per share (in thousands, except per share amounts):
Numerator:
Net loss	$	(95,154	)	$	(112,444	)	$	(106,794	)
Denominator for basic and diluted net loss per share:
Weighted-average common shares outstanding		52,613			38,506			32,881
Basic and diluted net loss per share	$	(1.81	)	$	(2.92	)	$	(3.25	)

Outstanding stock options and stock awards were excluded from the calculation of net loss per share allocable to common stockholders as the effect of their inclusion would have been anti-dilutive.

	December 31,
	2017		2016		2015
Outstanding securities not included in diluted net loss per share calculation (in thousands):
Stock options and stock awards		5,981		4,673		3,086
Total		5,981		4,673		3,086

Common Stock

12 Months Ended

Dec. 31, 2017

Preferred Stock Common Stock And Warrants [Abstract]

Common Stock

13.	Common Stock

Common Stock Outstanding

As of December 31, 2017, there were 61,532,812 shares of our common stock outstanding.

On November 3, 2017, we entered into an At Market Sales Agreement (“2017 ATM Agreement”) with Cowen and Company, LLC (“Cowen”) under which we may offer and sell from time to time at our sole discretion, shares of our common stock having an aggregate offering price up to $150 million through Cowen as our sales agent. We pay Cowen a commission of up to 3% of the gross sales proceeds of any common stock sold through Cowen under the 2017 ATM Agreement. As of December 31, 2017, we received net cash proceeds of $16.9 million resulting from sales of 840,774 shares of our common stock.

In August 2017, we completed an underwritten public offering of 5,750,000 shares of our common stock, including 750,000 shares sold pursuant to the full exercise of an overallotment option previously granted to the underwriters. All of the shares were offered at a price to the public of $15.00 per share. The net proceeds to us from this offering were approximately $80.8 million, after deducting the underwriting discount and other estimated offering expenses payable by us.

As of December 31, 2017, we received net cash proceeds of $88.2 million from sales of 15,997,202 shares of our common stock under a now terminated At Market Sales Agreement (“2015 ATM Agreement”).

Equity Plans and Stock-Based Compensation

12 Months Ended

Dec. 31, 2017

Share Based Compensation [Abstract]

Equity Plans and Stock-Based Compensation

14.	Equity Plans and Stock-Based Compensation

Stock Plans

Under the 2004 Stock Incentive Plan (“2004 Plan”) options to purchase 77,774 shares of common stock remained outstanding as of December 31, 2017.

Under the 2010 Employment Inducement Award Plan (“2010 Inducement Plan”) options to purchase 11,450 shares of common stock remained outstanding as of December 31, 2017.

The 2011 Equity Incentive Plan (“2011 Plan”) was approved by the Company’s stockholders and adopted in January 2011. On June 2, 2017, the stockholders of the Company approved an amendment and restatement of the 2011 Plan to increase the number of shares of common stock authorized for issuance under the plan by 1,600,000. The 2011 Plan, as amended, provides for the issuance of up to 10,343,442 shares of our common stock to employees and non-employees of the Company. The 2011 Plan is administered by our Board of Directors, or a designated committee of the Board of Directors, and awards granted under the 2011 Plan have a term of 7 or 10 years unless earlier terminated by the Board of Directors. As of December 31, 2017, options to purchase 3,373,555 shares of common stock remained outstanding under the 2011 Plan. As of December 31, 2017, there were 2,100,333 shares of common stock reserved for issuance under the 2011 Plan.

On November 28, 2017, the Company adopted the Dynavax Technologies Corporation Inducement Award Plan (the “2017 Inducement Plan”), pursuant to which the Company reserved 1,200,000 shares of its common stock for issuance under the 2017 Inducement Plan to be used exclusively for grants of awards to individuals who were not previously employees or directors of the Company, as an inducement material to the individual’s entry into employment with the Company within the meaning of Nasdaq Listing Rule 5635(c)(4). As of December 31, 2017, there were 1,125,200 shares of common stock reserved for issuance under the 2017 Inducement Plan.

Activity under our stock plans is set forth below:

	Shares Underlying Outstanding Options (in thousands)			Weighted-Average Exercise Price Per Share		Weighted-Average Remaining Contractual Term (years)		Aggregate Intrinsic Value (in thousands)
Balance at December 31, 2016		3,975		$	21.38
Options granted		535			12.23
Options exercised		(144	)		14.28
Options cancelled:
Options forfeited (unvested)		(400	)		18.30
Options cancelled (vested)		(411	)		30.78
Balance at December 31, 2017		3,555		$	19.56		6.04	$	7,477
Vested and expected to vest at December 31, 2017		3,533		$	19.56		6.04	$	7,468
Exercisable at December 31, 2017		2,294		$	21.35		5.77	$	2,702

The total intrinsic value of stock options exercised during the years ended December 31, 2017, 2016 and 2015 was $0.9 million, $0.2 million and $0.4 million, respectively. The total intrinsic value of exercised stock options is calculated based on the difference between the exercise price and the quoted market price of our common stock as of the close of the exercise date.

The total fair value of stock options vested during the years ended December 31, 2017, 2016 and 2015 was $13.0 million, $12.1 million and $6.9 million, respectively.

Our non-vested stock awards are comprised of restricted stock units granted with performance and time-based vesting criteria. A summary of the status of non-vested restricted stock units as of December 31, 2017, and activities during 2017 are summarized as follows:

	Number of Shares (In thousands)			Weighted-Average Grant-Date Fair Value
Non-vested as of December 31, 2016		699		$	12.12
Granted		2,217			5.34
Vested		(188	)		18.24
Forfeited		(285	)		7.74
Non-vested as of December 31, 2017		2,443		$	6.01

Stock-based compensation expense related to restricted stock units was approximately $5.5 million for the year ended December 31, 2017. The aggregate intrinsic value of the restricted stock units outstanding as of December 31, 2017, based on our stock price on that date, was $45.7 million.

The weighted average grant-date fair value of restricted stock units granted during the years ended December 31, 2017, 2016 and 2015 was, $5.34, $12.42 and $20.05, respectively. The total fair value of restricted stock units vested during the years ended December 31, 2017, 2016 and 2015 was $1.2 million, $1.0 million and $0.1 million, respectively.

Stock-Based Compensation

Under our stock-based compensation plans, option awards generally vest over a four-year or three-year period contingent upon continuous service and unless exercised, expire seven or ten years from the date of grant (or earlier upon termination of continuous service). The Company has also granted performance-based equity awards to certain of our employees under the 2017 Inducement and 2011 Plans. As of December 31, 2017, approximately 60,000 shares were outstanding related to options and restricted stock units subject to these performance-based vesting criteria. The fair value of each option is estimated on the date of grant using the Black-Scholes option valuation model and the following weighted-average assumptions:

	Stock Options									Employee Stock Purchase Plan
	Year Ended December 31,									Year Ended December 31,
	2017			2016			2015			2017			2016			2015
Weighted-average fair value	$	8.27		$	9.54		$	13.37		$	3.05		$	7.86		$	9.18
Risk-free interest rate		1.9	%		1.4	%		1.7	%		1.0	%		0.6	%		0.4	%
Expected life (in years)		4.5			4.9			5.9			1.2			1.2			1.2
Expected Volatility		0.9			0.7			0.7			1.0			0.6			0.6

Expected volatility is based on historical volatility of our stock price. The expected life of options granted is estimated based on historical option exercise and employee termination data. Our senior management, who hold a majority of the options outstanding, and other employees were grouped and considered separately for valuation purposes. The risk-free 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. Forfeiture estimates are based on historical employee turnover. The dividend yield is zero percent 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 is amortized to expense on a straight-line basis over the vesting periods. For equity awards with performance-based vesting criteria, the fair value is amortized to expense when the achievement of the vesting criteria becomes probable.

We recognized the following amounts of stock-based compensation expense (in thousands):

	Year Ended December 31,
	2017		2016		2015
Employees and directors stock-based compensation expense	$	14,917	$	14,126	$	9,316

	Year Ended December 31,
	2017		2016		2015
Research and development	$	7,827	$	6,742	$	4,123
Selling, general and administrative		7,090		7,384		5,193
Total	$	14,917	$	14,126	$	9,316

In addition, the cash-settled portion of stock compensation expense was $0.6 million and $0.4 million for the years ended December 31, 2016 and 2015, respectively. No cash-settled portion of stock compensation expense was incurred during 2017.

As of December 31, 2017, the total unrecognized compensation cost related to non-vested stock options and awards deemed probable of vesting, including all stock options with time-based vesting, net of estimated forfeitures, amounted to $21.3 million, which is expected to be recognized over the remaining weighted-average vesting period of 1.7 years. Additionally, as of December 31, 2017, the total unrecognized compensation cost related to equity awards with performance-based vesting criteria amounted to $0.3 million.

Employee Stock Purchase Plan

The 2014 Employee Stock Purchase Plan, as amended, (the “Purchase Plan”) provides for the purchase of common stock by eligible employees and became effective on May 28, 2014. The purchase price per share is the lesser of (i) 85% of the fair market value of the common stock on the commencement of the offer period (generally, the sixteenth day in February or August) or (ii) 85% of the fair market value of the common stock on the exercise date, which is the last day of a purchase period (generally, the fifteenth day in February or August). For the year ended December 31, 2017, employees have acquired 84,247 shares of our common stock under the Purchase Plan and 98,227 shares of our common stock remained available for future purchases under the Purchase Plan.

As of December 31, 2017, the total unrecognized compensation cost related to shares of our common stock under the Purchase Plan amounted to $0.4 million, which is expected to be recognized over the remaining weighted-average vesting period of 1.2 years.

Employee Benefit Plan

12 Months Ended

Dec. 31, 2017

Pension And Other Postretirement Benefit Expense [Abstract]

Employee Benefit Plan

15.	Employee Benefit Plan

We maintain a 401(k) Plan, which qualifies as a deferred salary arrangement under Section 401(k) of the Internal Revenue Code. Under the 401(k) Plan, participating employees may defer a portion of their pretax earnings. We may, at our discretion, contribute for the benefit of eligible employees. The Company’s contribution to the 401(k) Plan was approximately $0.2 million for the years ended December 31, 2017, 2016 and 2015.

Restructuring

12 Months Ended

Dec. 31, 2017

Restructuring And Related Activities [Abstract]

Restructuring

16.	Restructuring

In January 2017, we implemented organizational restructuring and cost reduction plans to align around our immuno-oncology business while allowing us to advance HEPLISAV-B through the FDA review and approval process. To achieve these cost reductions, we suspended manufacturing activities, commercial preparations and other long term investment related to HEPLISAV-B and reduced our global workforce by approximately 40 percent. In the first quarter of 2017 we recorded charges of $2.8 million related to severance, other termination benefits and outplacement services. As of December 31, 2017, all of the $2.8 million was paid.

Income Taxes

12 Months Ended

Dec. 31, 2017

Income Tax Disclosure [Abstract]

Income Taxes

17.	Income Taxes

Consolidated income (loss) before provision for income taxes consisted of the following (in thousands):

	Year Ended December 31,
	2017			2016			2015
U.S.	$	(95,898	)	$	(114,484	)	$	(107,450	)
Non U.S.		744			2,040			656
Total	$	(95,154	)	$	(112,444	)	$	(106,794	)

No income tax expense was recorded for the years ended December 31, 2017, 2016 and 2015 due to net operating loss carryforwards to offset the net income at Dynavax GmbH and a valuation allowance which offsets the deferred tax assets. The difference between the consolidated income tax benefit and the amount computed by applying the federal statutory income tax rate to the consolidated loss before income taxes was as follows (in thousands):

	Year Ended December 31,
	2017			2016			2015
Income tax benefit at federal statutory rate	$	(32,352	)	$	(38,183	)	$	(36,301	)
State tax		(4,482	)		(334	)		(394	)
Business credits		(1,960	)		(1,950	)		(2,622	)
Deferred compensation charges		3,823			3,016			1,481
Change in valuation allowance		(109,165	)		36,751			36,766
Rate change		86,943			-			-
Net operating loss and tax credit limitation		56,962			-			-
Other		231			700			1,070
Total income tax expense	$	-		$	-		$	-

Deferred tax assets and liabilities consisted of the following (in thousands):

	December 31,
	2017			2016
Deferred tax assets:
Net operating loss carry forwards	$	146,300		$	249,510
Research tax credit carry forwards		29,658			29,463
Accruals and reserves		6,551			8,684
Capitalized research costs		1,422			4,457
Other		731			1,303
Total deferred tax assets		184,662			293,417
Less valuation allowance		(184,388	)		(293,145	)
Net deferred tax assets		274			272
Deferred tax liabilities:
Fixed assets		(274	)		(272	)
Total deferred tax liabilities		(274	)		(272	)
Net deferred tax assets	$	-		$	-

The tax benefit of net operating losses, temporary differences and credit carryforwards is required to be recorded as an asset to the extent that management assesses that realization is “more likely than not.” Realization of the future tax benefits is dependent on our ability to generate sufficient taxable income within the carryforward period. Because of our recent history of operating losses, management believes that recognition of the deferred tax assets arising from the above-mentioned future tax benefits is currently not likely to be realized and, accordingly, has provided a full valuation allowance. The valuation allowance decreased by $108.8 million during the year ended December 31 2017 and increased by $36.4 million and $36.2 million during the years ended December 31, 2016 and 2015, respectively.

On December 22, 2017, the Tax Act was signed into law. Among other changes is a permanent reduction in the federal corporate income tax rate from 35% to 21% effective January 1, 2018. As a result of the reduction in the corporate income tax rate, the Company has revalued its net deferred tax assets at December 31, 2017. We estimate that this will result in a reduction in the value of our net deferred tax assets of approximately $87 million, which will be offset by the change in valuation allowance of $87 million.

The Tax Act also adopts elements of a territorial tax system while assessing a repatriation tax or “toll-charge” on undistributed earnings and profits of U.S.-owned foreign corporations. At this time, management has estimated the repatriation of undistributed earnings and profits of U.S. owned foreign corporations will result in a provisional income inclusion of $0.7 million, which will be fully offset by a current year loss. Other than the U.S. taxation of these amounts, we intend to continue to invest these earnings indefinitely outside of the U.S. and do not expect to incur any additional taxes related to such amounts.

As of December 31, 2017, we had federal net operating loss carryforwards of approximately $629.1 million, which will expire in the years 2018 through 2037 and federal research and development tax credits of approximately $16.9 million, which expire in the years 2018 through 2037.

As of December 31, 2017, we had net operating loss carryforwards for California and other states for income tax purposes of approximately $168.4 million, which expire in the years 2026 through 2037, and California state research and development tax credits of approximately $17.4 million, which do not expire.

As of December 31, 2017, we had net operating loss carryforwards for foreign income tax purposes of approximately $15.5 million, which do not expire.

Uncertain Income Tax positions

The total amount of unrecognized tax benefits was $1.2 million and $2.4 million as of December 31, 2017 and 2016, respectively. If recognized, none of the unrecognized tax benefits would affect the effective tax rate.

The following table summarizes the activity related to the Company’s unrecognized tax benefits:

Balance at December 31, 2016	$	(2,426	)
Tax positions related to the current year
Additions		-
Reductions		-
Tax positions related to the prior year
Additions		-
Reductions		1,197
Balance at December 31, 2017	$	(1,229	)

Our policy is to account for interest and penalties as income tax expense. As of December 31, 2017, the Company had no interest related to unrecognized tax benefits. No amounts of penalties related to unrecognized tax benefits were recognized in the provision for income taxes. We do not anticipate any significant change within 12 months of this reporting date of its uncertain tax positions.

The Tax Reform Act of 1986 limits the annual use of net operating loss and tax credit carryforwards in certain situations where changes occur in stock ownership of a company. In the event the Company has a change in ownership, as defined, the annual utilization of such carryforwards could be limited. Based on an analysis under Section 382 of the Internal Revenue Code, the Company experienced ownership changes in 2008, 2009 and 2012 which limit the future use of its pre-change federal net operating loss carryforwards and federal research and development tax credits. The Company has excluded these federal net operating loss carryforwards and federal research and development tax credits that will expire as a result of the annual limitations in the deferred tax assets as of December 31, 2017. A limitation calculation has not been performed with respect to the California net operating loss carryforwards and research and development tax credits and we believe that our ability to use these California net operating loss carryforwards and research and development tax credits in the future may be limited.

We are subject to income tax examinations for U.S. federal and state income taxes from 1998 forward. We are subject to tax examination in Germany from 2014 forward.

Selected Quarterly Financial Data

12 Months Ended

Dec. 31, 2017

Quarterly Financial Information Disclosure [Abstract]

Selected Quarterly Financial Data

18.	Selected Quarterly Financial Data (Unaudited; in thousands, except per share amounts)

	Year Ended December 31, 2017
	Q1			Q2			Q3			Q4
Revenues	$	148		$	105		$	53		$	21
Net loss	$	(25,287	)	$	(20,318	)	$	(22,128	)	$	(27,421	)
Basic and diluted net loss per share	$	(0.60	)	$	(0.41	)	$	(0.38	)	$	(0.45	)
Shares used to compute basic and diluted net loss per share		41,830			49,700			57,650			61,007

	Year Ended December 31, 2016
	Q1			Q2			Q3			Q4
Revenues	$	942		$	2,647		$	162		$	7,292
Net loss	$	(27,023	)	$	(28,986	)	$	(34,694	)	$	(21,741	)
Basic and diluted net loss per share	$	(0.70	)	$	(0.75	)	$	(0.90	)	$	(0.56	)
Shares used to compute basic and diluted net loss per share		38,472			38,496			38,512			38,544

Subsequent Event

12 Months Ended

Dec. 31, 2017

Subsequent Events [Abstract]

Subsequent Events

19.	Subsequent Events

HEPLISAV-B

We commenced commercial shipments of HEPLISAV-B in the first quarter of 2018. On February 21, 2018, the Centers for Disease Control and Prevention's (“CDC”) Advisory Committee on Immunization Practices (“ACIP”) voted unanimously in favor of including HEPLISAV-B on its list of ACIP recommended products for use to vaccinate adults against hepatitis B.

Term Loan Agreement

On February 20, 2018, we entered into a $175.0 million term loan agreement (“Loan Agreement”) with CRG Servicing LLC. The Loan Agreement provides for a $175.0 million term loan facility, $100.0 million of which was borrowed at closing and, subject to the satisfaction of certain market capitalization and other borrowing conditions, up to an additional $75.0 million at our option on or before July 17, 2019.

The loans have a maturity date of December 31, 2023, unless earlier prepaid. The loans bear interest at a rate equal to 9.50% per annum.

Sublicense Agreement

On February 16, 2018, we entered into a Sublicense Agreement (the “Sublicense Agreement”) with Merck Sharpe & Dohme Corp. (the “Sublicensor”). The Sublicense Agreement grants us, under certain non-exclusive U.S. patent rights controlled by the Sublicensor which relate to recombinant production of Hepatitis B surface antigen, the right to manufacture, use, offer for sale, sell and import HEPLISAV-B, adult Hepatitis B Vaccine, to prevent hepatitis B and diseases caused by hepatitis B in the United States and includes the right to grant further sublicenses. In consideration, we made a $7.0 million payment to the Sublicensor in February 2018. The remaining two payments of $7.0 million each are due in the first quarter of each of 2019 and 2020.

Summary of Significant Accounting Policies (Policies)

12 Months Ended

Dec. 31, 2017

Accounting Policies [Abstract]

Basis of Presentation and Principles of Consolidation

Liquidity and Financial Condition

As of December 31, 2017, we had cash, cash equivalents and marketable securities of $191.9 million.

Use of Estimates

Foreign Currency Translation

Cash, Cash Equivalents, and Marketable Securities

Cash, Cash Equivalents and Marketable Securities

•

whether the investment has been in a continuous realized loss position for over 12 months;

•

the duration to maturity of our investments;

•

our intention and ability to hold the investment to maturity and if it is not more likely than not that we will be required to sell the investment before recovery of the amortized cost bases;

•

the credit rating, financial condition and near-term prospects of the issuer; and

•

the type of investments made.

To date, there have been no declines in fair value that have been identified as other than temporary.

Concentration of Credit Risk and Other Risks and Uncertainties

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. Royalty revenue is recognized when all revenue recognition criteria have been satisfied.

Revenue from government and private agency grants is recognized as the related research expenses are incurred and to the extent that funding is approved.

Research and Development Expenses and Accruals

Stock-Based Compensation

Income Taxes

Restructuring

Recent Accounting Pronouncements

Accounting Standards Update 2014-09

Accounting Standards Update 2016-02

Accounting Standards Update 2016-18

Accounting Standards Update 2017-04

Accounting Standards Update 2017-09

Fair Value Measurements (Tables)

12 Months Ended

Dec. 31, 2017

Fair Value Disclosures [Abstract]

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

The following table represents the fair value hierarchy for our financial assets (cash equivalents and marketable securities) measured at fair value on a recurring basis (in thousands):

	Level 1		Level 2		Level 3		Total
December 31, 2017
Money market funds	$	22,543	$	-	$	-	$	22,543
U.S. Treasuries		-		45,534		-		45,534
U.S. government agency securities		-		86,820		-		86,820
Corporate debt securities		-		32,916		-		32,916
Total	$	22,543	$	165,270	$	-	$	187,813

	Level 1		Level 2		Level 3		Total
December 31, 2016
Money market funds	$	18,981	$	-	$	-	$	18,981
U.S. Treasuries		-		3,499		-		3,499
U.S. government agency securities		-		30,437		-		30,437
Corporate debt securities		-		24,941		-		24,941
Total	$	18,981	$	58,877	$	-	$	77,858

Cash, Cash Equivalents and Marketable Securities (Tables)

12 Months Ended

Dec. 31, 2017

Cash Cash Equivalents And Short Term Investments [Abstract]

Summary of Cash, Cash Equivalents and Marketable Securities

Cash, cash equivalents and marketable securities consist of the following (in thousands):

	Amortized Cost		Unrealized Gains		Unrealized Losses			Estimated Fair Value
December 31, 2017
Cash and cash equivalents:
Cash	$	4,041	$	-	$	-		$	4,041
Money market funds		22,543		-		-			22,543
Total cash and cash equivalents		26,584		-		-			26,584
Marketable securities available-for-sale:
U.S. Treasuries		45,559		-		(25	)		45,534
U.S. government agency securities		86,860		-		(40	)		86,820
Corporate debt securities		32,931		-		(15	)		32,916
Total marketable securities available-for-sale		165,350		-		(80	)		165,270
Total cash, cash equivalents and marketable securities	$	191,934	$	-	$	(80	)	$	191,854
December 31, 2016
Cash and cash equivalents:
Cash	$	3,557	$	-	$	-		$	3,557
Money market funds		18,981		-		-			18,981
U.S. government agency securities		1,751		-		-			1,751
Total cash and cash equivalents		24,289		-		-			24,289
Marketable securities available-for-sale:
U.S. Treasuries		3,499		-		-			3,499
U.S. government agency securities		28,685		3		(2	)		28,686
Corporate debt securities		24,938		5		(2	)		24,941
Total marketable securities available-for-sale		57,122		8		(4	)		57,126
Total cash, cash equivalents and marketable securities	$	81,411	$	8	$	(4	)	$	81,415

Maturities of Marketable Securities Available-for-Sale

The maturities of our marketable securities available-for-sale are as follows (in thousands):

	December 31, 2017
	Amortized Cost		Estimated Fair Value
Mature in one year or less	$	165,350	$	165,270
Mature after one year through two years		-		-
	$	165,350	$	165,270

- 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 + Details

Intangible Assets (Tables)

12 Months Ended

Dec. 31, 2017

Goodwill And Intangible Assets Disclosure [Abstract]

Summary of Intangible Assets

Intangible assets are related to certain capitalized milestone payments. The following table presents intangible assets (in thousands):

	December 31,
	2017			2016
Intangible assets	$	2,500		$	-
Less accumulated amortization		(1,194	)		-
Total	$	1,306		$	-

Property and Equipment (Tables)

12 Months Ended

Dec. 31, 2017

Property Plant And Equipment [Abstract]

Component of Property and Equipment

Property and equipment consist of the following (in thousands):

	Estimated Useful	December 31,
	Life (In years)	2017			2016
Manufacturing equipment	5-14	$	12,104		$	10,086
Lab equipment	5-13		6,686			6,280
Computer equipment	3		4,760			4,010
Furniture and fixtures	3-13		1,629			1,566
Leasehold improvements	5-8⁽¹⁾		10,873			8,942
Assets in progress			1,176			2,298
			37,228			33,182
Less accumulated depreciation and amortization			(20,609	)		(16,008	)
Total		$	16,619		$	17,174

(1)	Leasehold improvements are amortized over the remaining life of the initial lease term or the estimated useful lives of the assets, whichever is shorter.

Current Accrued Liabilities and Accrued Research and Development (Tables)

12 Months Ended

Dec. 31, 2017

Disclosure Component Of Current Accrued Liabilities And Accrued Research And Development [Abstract]

Component of Current Accrued Liabilities and Accrued Research and Development

Current accrued liabilities and accrued research and development consist of the following (in thousands):

	December 31,
	2017		2016
Payroll and related expenses	$	6,180	$	3,753
Legal expenses		346		275
Litigation settlements accrual (Note 9)		-		4,975
Third party research expenses		3,567		2,784
Third party development expenses		522		2,002
Other accrued liabilities		3,439		2,451
Total	$	14,054	$	16,240

Commitments and Contingencies (Tables)

12 Months Ended

Dec. 31, 2017

Commitments And Contingencies Disclosure [Abstract]

Future Minimum Payments Under Non-Cancelable Portion of Operating Leases and Non-Cancelable Purchase Commitments

Future minimum payments under the non-cancelable portion of our operating leases and non-cancelable purchase commitments at December 31, 2017 are as follows (in thousands):

Year ending December 31,
2018	$	7,743
2019		2,559
2020		2,621
2021		2,549
2022		2,543
Thereafter		6,595
Total	$	24,610

Collaborative Research, Development and License Agreements (Tables)

12 Months Ended

Dec. 31, 2017

Astra Zeneca

Summary of Revenue Recognized under Various Agreements

The following table summarizes the revenues earned under our agreement with AstraZeneca, included as collaboration revenue in our consolidated statements of operations (in thousands):


	Year ended December 31,
	2017		2016		2015
Initial and milestone payment	$	-	$	7,722	$	238
Subsequent payment		-		1,953		892
Performance of research activities		-		103		1,635
Total	$	-	$	9,778	$	2,765

Net Loss Per Share (Tables)

12 Months Ended

Dec. 31, 2017

Earnings Per Share [Abstract]

Computation of Basic and Diluted Earnings Per Share

	December 31,
	2017			2016			2015
Basic and diluted net loss per share (in thousands, except per share amounts):
Numerator:
Net loss	$	(95,154	)	$	(112,444	)	$	(106,794	)
Denominator for basic and diluted net loss per share:
Weighted-average common shares outstanding		52,613			38,506			32,881
Basic and diluted net loss per share	$	(1.81	)	$	(2.92	)	$	(3.25	)

	December 31,
	2017		2016		2015
Outstanding securities not included in diluted net loss per share calculation (in thousands):
Stock options and stock awards		5,981		4,673		3,086
Total		5,981		4,673		3,086

Equity Plans and Stock-Based Compensation (Tables)

12 Months Ended

Dec. 31, 2017

Share Based Compensation [Abstract]

Option Activity under Stock-Based Compensation Plans

Activity under our stock plans is set forth below:

	Shares Underlying Outstanding Options (in thousands)			Weighted-Average Exercise Price Per Share		Weighted-Average Remaining Contractual Term (years)		Aggregate Intrinsic Value (in thousands)
Balance at December 31, 2016		3,975		$	21.38
Options granted		535			12.23
Options exercised		(144	)		14.28
Options cancelled:
Options forfeited (unvested)		(400	)		18.30
Options cancelled (vested)		(411	)		30.78
Balance at December 31, 2017		3,555		$	19.56		6.04	$	7,477
Vested and expected to vest at December 31, 2017		3,533		$	19.56		6.04	$	7,468
Exercisable at December 31, 2017		2,294		$	21.35		5.77	$	2,702

Summary of Restricted Stock Units Activity

	Number of Shares (In thousands)			Weighted-Average Grant-Date Fair Value
Non-vested as of December 31, 2016		699		$	12.12
Granted		2,217			5.34
Vested		(188	)		18.24
Forfeited		(285	)		7.74
Non-vested as of December 31, 2017		2,443		$	6.01

Fair Value-Based Measurements and Weighted-Average Assumptions

The fair value of each option is estimated on the date of grant using the Black-Scholes option valuation model and the following weighted-average assumptions:

	Stock Options									Employee Stock Purchase Plan
	Year Ended December 31,									Year Ended December 31,
	2017			2016			2015			2017			2016			2015
Weighted-average fair value	$	8.27		$	9.54		$	13.37		$	3.05		$	7.86		$	9.18
Risk-free interest rate		1.9	%		1.4	%		1.7	%		1.0	%		0.6	%		0.4	%
Expected life (in years)		4.5			4.9			5.9			1.2			1.2			1.2
Expected Volatility		0.9			0.7			0.7			1.0			0.6			0.6

Stock-Based Compensation Expense

We recognized the following amounts of stock-based compensation expense (in thousands):

	Year Ended December 31,
	2017		2016		2015
Employees and directors stock-based compensation expense	$	14,917	$	14,126	$	9,316

	Year Ended December 31,
	2017		2016		2015
Research and development	$	7,827	$	6,742	$	4,123
Selling, general and administrative		7,090		7,384		5,193
Total	$	14,917	$	14,126	$	9,316

Income Taxes (Tables)

12 Months Ended

Dec. 31, 2017

Income Tax Disclosure [Abstract]

Component of Consolidated Income (Loss) Before Provision for Income Taxes

Consolidated income (loss) before provision for income taxes consisted of the following (in thousands):

	Year Ended December 31,
	2017			2016			2015
U.S.	$	(95,898	)	$	(114,484	)	$	(107,450	)
Non U.S.		744			2,040			656
Total	$	(95,154	)	$	(112,444	)	$	(106,794	)

Difference Between Consolidated Income Tax Benefit and Amount Computed by Federal Statutory Income Tax Rate

	Year Ended December 31,
	2017			2016			2015
Income tax benefit at federal statutory rate	$	(32,352	)	$	(38,183	)	$	(36,301	)
State tax		(4,482	)		(334	)		(394	)
Business credits		(1,960	)		(1,950	)		(2,622	)
Deferred compensation charges		3,823			3,016			1,481
Change in valuation allowance		(109,165	)		36,751			36,766
Rate change		86,943			-			-
Net operating loss and tax credit limitation		56,962			-			-
Other		231			700			1,070
Total income tax expense	$	-		$	-		$	-

Component of Deferred Tax Assets and Liabilities

Deferred tax assets and liabilities consisted of the following (in thousands):

	December 31,
	2017			2016
Deferred tax assets:
Net operating loss carry forwards	$	146,300		$	249,510
Research tax credit carry forwards		29,658			29,463
Accruals and reserves		6,551			8,684
Capitalized research costs		1,422			4,457
Other		731			1,303
Total deferred tax assets		184,662			293,417
Less valuation allowance		(184,388	)		(293,145	)
Net deferred tax assets		274			272
Deferred tax liabilities:
Fixed assets		(274	)		(272	)
Total deferred tax liabilities		(274	)		(272	)
Net deferred tax assets	$	-		$	-

Schedule of Unrecognized Tax Benefits

The following table summarizes the activity related to the Company’s unrecognized tax benefits:

Balance at December 31, 2016	$	(2,426	)
Tax positions related to the current year
Additions		-
Reductions		-
Tax positions related to the prior year
Additions		-
Reductions		1,197
Balance at December 31, 2017	$	(1,229	)

Selected Quarterly Financial Data (Tables)

12 Months Ended

Dec. 31, 2017

Quarterly Financial Information Disclosure [Abstract]

Selected Quarterly Financial Data

	Year Ended December 31, 2017
	Q1			Q2			Q3			Q4
Revenues	$	148		$	105		$	53		$	21
Net loss	$	(25,287	)	$	(20,318	)	$	(22,128	)	$	(27,421	)
Basic and diluted net loss per share	$	(0.60	)	$	(0.41	)	$	(0.38	)	$	(0.45	)
Shares used to compute basic and diluted net loss per share		41,830			49,700			57,650			61,007

	Year Ended December 31, 2016
	Q1			Q2			Q3			Q4
Revenues	$	942		$	2,647		$	162		$	7,292
Net loss	$	(27,023	)	$	(28,986	)	$	(34,694	)	$	(21,741	)
Basic and diluted net loss per share	$	(0.70	)	$	(0.75	)	$	(0.90	)	$	(0.56	)
Shares used to compute basic and diluted net loss per share		38,472			38,496			38,512			38,544

Organization - Additional Information (Detail)	1 Months Ended
Organization - Additional Information (Detail)	Nov. 30, 2017
HEPLISAV-B™
Organization Consolidation And Presentation Of Financial Statements Disclosure [Line Items]
Minimum age approved for vaccine prevention of infection caused	18 years

Summary of Significant Accounting Policies - Additional Information (Detail)	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017 USD ($) Segment vial	Dec. 31, 2016 USD ($)	Dec. 31, 2015 USD ($)
Organization Consolidation And Presentation Of Financial Statements Disclosure [Line Items]
Number of operating segment \| Segment		1
Cash, cash equivalents and marketable securities		$ 191,900,000
Impairment of Intangible assets		0
Impairments of tangible assets		0	$ 0	$ 0
Goodwill impairments		$ 0	$ 0	$ 0
Federal corporate income tax rate		35.00%
New Corporate Tax Rate
Organization Consolidation And Presentation Of Financial Statements Disclosure [Line Items]
Federal corporate income tax rate	21.00%
HEPLISAV-B™
Organization Consolidation And Presentation Of Financial Statements Disclosure [Line Items]
Number of vials \| vial		250,000
Expected minimum selling period		9 months
United States
Organization Consolidation And Presentation Of Financial Statements Disclosure [Line Items]
Percentage of revenue earned		90.00%	92.00%	85.00%
Percentage of long lived assets		15.00%	17.00%
Maximum
Organization Consolidation And Presentation Of Financial Statements Disclosure [Line Items]
Cash equivalents original maturity period		3 months
Dynavax GmbH
Organization Consolidation And Presentation Of Financial Statements Disclosure [Line Items]
Currency translation adjustments		$ 2,800,000	$ (700,000)	$ (1,300,000)
Currency transaction (loss) gain		$ (600,000)	$ 200,000	$ 100,000

Fair Value Measurements - Additional Information (Detail) - USD ($)	Dec. 31, 2017	Dec. 31, 2016
Fair Value Disclosures [Abstract]
Transfers from level 1 to level 2	$ 0	$ 0
Transfers from level 2 to level 1	$ 0	$ 0

Fair Value Hierarchy for Financial Assets Measured at Fair Value on Recurring Basis (Detail) - Fair Value, Measurements, Recurring - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Assets	$ 187,813	$ 77,858
Money Market Funds
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Assets	22,543	18,981
U.S. Treasuries
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Assets	45,534	3,499
U.S. Government Agency Securities
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Assets	86,820	30,437
Corporate Debt Securities
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Assets	32,916	24,941
Fair Value, Inputs, Level 1
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Assets	22,543	18,981
Fair Value, Inputs, Level 1 \| Money Market Funds
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Assets	22,543	18,981
Fair Value, Inputs, Level 2
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Assets	165,270	58,877
Fair Value, Inputs, Level 2 \| U.S. Treasuries
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Assets	45,534	3,499
Fair Value, Inputs, Level 2 \| U.S. Government Agency Securities
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Assets	86,820	30,437
Fair Value, Inputs, Level 2 \| Corporate Debt Securities
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Assets	$ 32,916	$ 24,941

Summary of Cash, Cash Equivalents and Marketable Securities (Detail) - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016
Cash Cash Equivalents And Marketable Securities [Line Items]
Amortized Cost	$ 191,934	$ 81,411
Unrealized Gains		8
Unrealized Losses	(80)	(4)
Estimated Fair Value	191,854	81,415
Cash and Cash Equivalents
Cash Cash Equivalents And Marketable Securities [Line Items]
Amortized Cost	26,584	24,289
Estimated Fair Value	26,584	24,289
Marketable Securities Available-for-Sale
Cash Cash Equivalents And Marketable Securities [Line Items]
Amortized Cost	165,350	57,122
Unrealized Gains		8
Unrealized Losses	(80)	(4)
Estimated Fair Value	165,270	57,126
Cash \| Cash and Cash Equivalents
Cash Cash Equivalents And Marketable Securities [Line Items]
Amortized Cost	4,041	3,557
Estimated Fair Value	4,041	3,557
Money Market Funds \| Cash and Cash Equivalents
Cash Cash Equivalents And Marketable Securities [Line Items]
Amortized Cost	22,543	18,981
Estimated Fair Value	22,543	18,981
U.S. Treasuries \| Marketable Securities Available-for-Sale
Cash Cash Equivalents And Marketable Securities [Line Items]
Amortized Cost	45,559	3,499
Unrealized Losses	(25)
Estimated Fair Value	45,534	3,499
U.S. Government Agency Securities \| Cash and Cash Equivalents
Cash Cash Equivalents And Marketable Securities [Line Items]
Amortized Cost		1,751
Estimated Fair Value		1,751
U.S. Government Agency Securities \| Marketable Securities Available-for-Sale
Cash Cash Equivalents And Marketable Securities [Line Items]
Amortized Cost	86,860	28,685
Unrealized Gains		3
Unrealized Losses	(40)	(2)
Estimated Fair Value	86,820	28,686
Corporate Debt Securities \| Marketable Securities Available-for-Sale
Cash Cash Equivalents And Marketable Securities [Line Items]
Amortized Cost	32,931	24,938
Unrealized Gains		5
Unrealized Losses	(15)	(2)
Estimated Fair Value	$ 32,916	$ 24,941

Maturities of Marketable Securities Available-for-Sale (Detail) $ in Thousands	Dec. 31, 2017 USD ($)
Amortized Cost
Mature in one year or less	$ 165,350
Mature after one year through two years	0
Total amortized cost	165,350
Estimated Fair Value
Mature in one year or less	165,270
Mature after one year through two years	0
Total estimated fair value	$ 165,270

Cash, Cash Equivalents and Marketable Securities - Additional Information (Detail) - USD ($)	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Investments Debt And Equity Securities [Abstract]
Realized gains or losses from the sale of marketable securities	$ 0	$ 0	$ 0

Inventories - Additional Information (Detail)	12 Months Ended
Inventories - Additional Information (Detail)	Dec. 31, 2017 USD ($)
Inventory Disclosure [Abstract]
Inventory, work in progress	$ 300,000
Inventory, write down	$ 0

Intangible Assets - Summary of Intangible Assets (Detail) $ in Thousands	Dec. 31, 2017 USD ($)
Finite Lived Intangible Assets Net [Abstract]
Intangible assets	$ 2,500
Less accumulated amortization	(1,194)
Total	$ 1,306

Intangible Assets - Additional Information (Detail)	12 Months Ended
Intangible Assets - Additional Information (Detail)	Dec. 31, 2017 USD ($)
Finite Lived Intangible Assets Net [Abstract]
Amortization expense related to intangible assets	$ 1,194,000
Estimated remaining useful life of intangible assets	2 months
Intangible assets, net	$ 1,306,000
Impairment of intangible assets	$ 0

Component of Property and Equipment (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Property Plant And Equipment [Line Items]
Manufacturing equipment	$ 12,104	$ 10,086
Lab equipment	6,686	6,280
Computer equipment	4,760	4,010
Furniture and fixtures	1,629	1,566
Leasehold improvements	10,873	8,942
Assets in progress	1,176	2,298
Property, Plant and Equipment, Gross	37,228	33,182
Less accumulated depreciation and amortization	(20,609)	(16,008)
Total	$ 16,619	$ 17,174
Manufacturing Equipment \| Minimum
Property Plant And Equipment [Line Items]
Estimated Useful Lives (In years)	5 years
Manufacturing Equipment \| Maximum
Property Plant And Equipment [Line Items]
Estimated Useful Lives (In years)	14 years
Lab Equipment \| Minimum
Property Plant And Equipment [Line Items]
Estimated Useful Lives (In years)	5 years
Lab Equipment \| Maximum
Property Plant And Equipment [Line Items]
Estimated Useful Lives (In years)	13 years
Computer Equipment
Property Plant And Equipment [Line Items]
Estimated Useful Lives (In years)	3 years
Furniture and Fixtures \| Minimum
Property Plant And Equipment [Line Items]
Estimated Useful Lives (In years)	3 years
Furniture and Fixtures \| Maximum
Property Plant And Equipment [Line Items]
Estimated Useful Lives (In years)	13 years
Leasehold Improvements \| Minimum
Property Plant And Equipment [Line Items]
Estimated Useful Lives (In years)	5 years
Leasehold Improvements \| Maximum
Property Plant And Equipment [Line Items]
Estimated Useful Lives (In years)	8 years

Property and Equipment - Additional Information (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Property Plant And Equipment [Abstract]
Depreciation and amortization	$ 3,244	$ 2,257	$ 1,365

Component of Current Accrued Liabilities and Accrued Research and Development (Detail) - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016
Accrued Liabilities Abstract
Payroll and related expenses	$ 6,180	$ 3,753
Legal expenses	346	275
Litigation settlements accrual (Note 9)		4,975
Third party research expenses	3,567	2,784
Third party development expenses	522	2,002
Other accrued liabilities	3,439	2,451
Total	$ 14,054	$ 16,240

Commitments and Contingencies - Additional Information (Detail) € in Millions			1 Months Ended	12 Months Ended
	Oct. 24, 2017 USD ($)	Sep. 07, 2016 USD ($)	Nov. 30, 2009 USD ($)	Dec. 31, 2017 USD ($)	Dec. 31, 2016 USD ($)	Dec. 31, 2015 USD ($)	Dec. 31, 2004 USD ($)	Dec. 31, 2017 EUR (€)	Dec. 31, 2016 EUR (€)
Loss Contingencies [Line Items]
Reversal of deferred rent liability				$ 209,000
Rent expense, net				2,400,000	$ 2,200,000	$ 2,000,000
Deferred rent				600,000	300,000
Accrued gain (loss) on lease					(300,000)
Cash, cash equivalents and marketable securities				$ 191,900,000
Litigation settlement agreement date				September 7, 2016
Litigation amount payable	$ 900,000
Estimated loss accrual on litigation					4,975,000
Accrued Liabilities
Loss Contingencies [Line Items]
Anticipated recovery on litigation					900,000
Prepaid Expenses and Other Current Assets
Loss Contingencies [Line Items]
Anticipated recovery on litigation					900,000
Dynavax Technologies Securities Litigation
Loss Contingencies [Line Items]
Litigation amount payable		$ 4,100,000
Dynavax Technologies Securities Litigation \| Accrued Liabilities
Loss Contingencies [Line Items]
Estimated loss accrual on litigation					4,100,000
Dynavax Technologies Securities Litigation \| Prepaid Expenses and Other Current Assets
Loss Contingencies [Line Items]
Anticipated recovery on litigation					4,100,000
Symphony Dynamo, Inc.
Loss Contingencies [Line Items]
License arrangement contingent consideration percentage			50.00%
License arrangement upfront payment			$ 50,000,000
Milestone payments				$ 0
Deutsche Bank Securities
Loss Contingencies [Line Items]
Letter of credit pledged as security \| €								€ 0.2
Collateralized certificate of deposit \| €								€ 0.2	€ 0.2
Berkeley, California (the "Berkeley Lease")
Loss Contingencies [Line Items]
Operating leases expiration date				2025-12
Letter of credit pledged as security							$ 400,000
Collateralized certificate of deposit				$ 400,000	$ 400,000
Terms of the lease				If the total amount of our cash, cash equivalents and marketable securities falls below $20 million for a period of more than 30 consecutive days during the lease term, the amount of the required security deposit will increase to $1.1 million, until such time as our projected cash and cash equivalents will exceed $20 million for the remainder of the lease term, or until our actual cash and cash equivalents remains above $20 million for a period of 12 consecutive months.
Berkeley, California (the "Berkeley Lease") \| Contingency, B
Loss Contingencies [Line Items]
Contingency period for cash, cash equivalents and marketable securities							12 months
Berkeley, California (the "Berkeley Lease") \| Contingency, B \| Minimum
Loss Contingencies [Line Items]
Cash, cash equivalents and marketable securities							$ 20,000,000
Berkeley, California (the "Berkeley Lease") \| Contingency, A
Loss Contingencies [Line Items]
Increase in amount of the security deposit							$ 1,100,000
Berkeley, California (the "Berkeley Lease") \| Contingency, A \| Minimum
Loss Contingencies [Line Items]
Contingency period for cash, cash equivalents and marketable securities							30 days
Berkeley, California (the "Berkeley Lease") \| Contingency, A \| Maximum
Loss Contingencies [Line Items]
Cash, cash equivalents and marketable securities							$ 20,000,000
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 and Non-Cancelable Purchase Commitments (Detail) $ in Thousands	Dec. 31, 2017 USD ($)
Commitments And Contingencies Disclosure [Abstract]
2018	$ 7,743
2019	2,559
2020	2,621
2021	2,549
2022	2,543
Thereafter	6,595
Total	$ 24,610

Collaborative Research, Development and License Agreements - Additional Information (Detail) - USD ($)	1 Months Ended		3 Months Ended		12 Months Ended
	Nov. 30, 2016	Jun. 30, 2007	Mar. 31, 2017	Dec. 31, 2016	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2017	Nov. 30, 2017
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items]
Liability related to unused development funding				$ 11,192,000	$ 11,192,000		$ 9,695,000
Maximum
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items]
Additional milestone payments eligible to be received based on achievement of certain development and regulatory objectives							100,000,000
Astra Zeneca
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items]
Milestone payments earned	$ 7,200,000				7,200,000
Unused development funding advanced by AstraZeneca	$ 7,400,000
Milestone revenue recognition				$ 7,200,000	$ 103,000	$ 1,635,000
Unused development funding paid			$ 200,000
Liability related to unused development funding							0
Coley Pharmaceutical Group, Inc.
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items]
Intangible asset								$ 2,500,000
Agreement termination date		2018-02
Expected milestone payments prior to termination							0
Coley Pharmaceutical Group, Inc. \| Accounts Payable
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items]
Payment due included in accounts payable							$ 2,500,000

Summary of Revenue Recognized under Various Agreements (Detail) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Product Information [Line Items]
Total revenues	$ 21	$ 53	$ 105	$ 148	$ 7,292	$ 162	$ 2,647	$ 942	$ 327	$ 11,043	$ 4,050
Astra Zeneca
Product Information [Line Items]
Initial and milestone payment										7,722	238
Subsequent payment										1,953	892
Performance of research activities					$ 7,200					103	1,635
Total revenues										$ 9,778	$ 2,765

Long-Term Debt - Additional Information (Detail)		1 Months Ended		12 Months Ended
Long-Term Debt - Additional Information (Detail)	Dec. 23, 2014 USD ($)	Dec. 31, 2016 USD ($)	Sep. 30, 2015 USD ($)	Dec. 31, 2017 USD ($)	Dec. 31, 2015 USD ($)	Oct. 31, 2016 USD ($)	Dec. 31, 2014 USD ($) TRANCHES
Debt Instrument [Line Items]
Loss on extinguishment of debt					$ (1,671,000)
Loan and Security Agreement \| Hercules Technology Growth Capital, Inc. (“Hercules”)
Debt Instrument [Line Items]
Maximum borrowing capacity							$ 40,000,000
Number of tranches for loan and security agreement \| TRANCHES							2
Repayment of loan agreement			$ 11,000,000
Outstanding principal			10,000,000
Accrued unpaid interest			38,000
Term fee			800,000
Prepayment charges			200,000
Loss on extinguishment of debt			1,700,000
Loan and Security Agreement \| Hercules Technology Growth Capital, Inc. (“Hercules”) \| First Tranche
Debt Instrument [Line Items]
Proceeds from lines of credit	$ 10,000,000
Loan and Security Agreement \| Hercules Technology Growth Capital, Inc. (“Hercules”) \| Second Tranche
Debt Instrument [Line Items]
Proceeds from lines of credit				$ 0
Available borrowing capacity			$ 30,000,000
Note Purchase Agreement
Debt Instrument [Line Items]
Aggregate purchase price						$ 100,000,000
Amount paid to lender upon entering into agreement						1,000,000
Amount incurred in securing agreement						$ 1,600,000
Debt instrument, termination fee		$ 1,500,000

Computation of Basic and Diluted Earnings Per Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Basic and diluted net loss per share (in thousands, except per share amounts):
Net loss	$ (27,421)	$ (22,128)	$ (20,318)	$ (25,287)	$ (21,741)	$ (34,694)	$ (28,986)	$ (27,023)	$ (95,154)	$ (112,444)	$ (106,794)
Denominator for basic and diluted net loss per share:
Weighted-average common shares outstanding	61,007	57,650	49,700	41,830	38,544	38,512	38,496	38,472	52,613	38,506	32,881
Basic and diluted net loss per share	$ (0.45)	$ (0.38)	$ (0.41)	$ (0.60)	$ (0.56)	$ (0.90)	$ (0.75)	$ (0.70)	$ (1.81)	$ (2.92)	$ (3.25)
Outstanding securities not included in diluted net loss per share calculation (in thousands):
Outstanding securities not included in diluted net loss per share calculation									5,981	4,673	3,086
Stock Options and Stock Awards
Outstanding securities not included in diluted net loss per share calculation (in thousands):
Outstanding securities not included in diluted net loss per share calculation									5,981	4,673	3,086

Common Stock - Additional Information (Detail) - USD ($)		1 Months Ended	12 Months Ended
	Nov. 03, 2017	Aug. 31, 2017	Dec. 31, 2017	Dec. 31, 2015	Dec. 31, 2016
Class Of Stock [Line Items]
Common stock, shares outstanding			61,532,812		38,599,000
Net cash proceeds received			$ 185,936,000	$ 183,897,000
Common Stock
Class Of Stock [Line Items]
Issuance of common stock (in shares)			22,588,000	7,353,000
2017 ATM Agreement
Class Of Stock [Line Items]
Issuance of common stock (in shares)			840,774
Net cash proceeds received			$ 16,900,000
Underwritten Public Offering \| Common Stock
Class Of Stock [Line Items]
Issuance of common stock (in shares)		5,750,000
Public offering net price per share		$ 15.00
Net proceeds from offering		$ 80,800,000
Over-Allotment Option \| Common Stock
Class Of Stock [Line Items]
Issuance of common stock (in shares)		750,000
2015 ATM Agreement
Class Of Stock [Line Items]
Issuance of common stock (in shares)			15,997,202
Net cash proceeds received			$ 88,200,000
Maximum \| 2017 ATM Agreement
Class Of Stock [Line Items]
Common stock sales agreement aggregate sales proceeds	$ 150,000,000
Commission on gross sales proceeds of common stock	3.00%

Equity Plans and Stock-Based Compensation - Additional Information (Detail) - USD ($)			1 Months Ended	12 Months Ended
	Jun. 02, 2017	May 28, 2014	Jan. 31, 2011	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015	Nov. 28, 2017
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Number of shares of common stock outstanding				3,555,000	3,975,000
Total intrinsic value of options exercised				$ 900,000	$ 200,000	$ 400,000
Total fair value of stock options vested				$ 13,000,000	12,100,000	6,900,000
Options and restricted stock units outstanding				60,000
Expected dividend yield				0.00%
Cash-settled portion of stock compensation expense				$ 0	$ 602,000	$ 387,000
Restricted Stock Units (RSUs)
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Stock based compensation expense related to restricted stock				5,500,000
Aggregate intrinsic value				$ 45,700,000
Grant date fair value of restricted stock				$ 5.34	$ 12.42	$ 20.05
Total fair value of restricted stock units				$ 1,200,000	$ 1,000,000	$ 100,000
Maximum \| Employee Stock Option
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Expiration period				10 years
Options vesting period				4 years
Minimum \| Employee Stock Option
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Expiration period				7 years
Options vesting period				3 years
2004 Stock Incentive Plan
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Number of shares of common stock outstanding				77,774
2010 Employment Inducement Award Plan
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Number of shares of common stock outstanding				11,450
2011 Plan
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Number of shares of common stock outstanding				3,373,555
Shares reserved and approved for issuance				2,100,333
2011 Plan \| Maximum
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Issuance of common stock shares	10,343,442
Increase in the aggregate number of shares of common stock authorized for issuance	1,600,000
Expiration period			10 years
2011 Plan \| Minimum
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Expiration period			7 years
2017 Inducement Plan
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Common stock shares reserved for future issuance				1,125,200			1,200,000
Time Based Vesting Schedule
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Total unrecognized compensation cost related to non-vested equity awards				$ 21,300,000
Total unrecognized compensation cost, weighted-average vesting period				1 year 8 months 12 days
Performance Based Vesting Schedule
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Total unrecognized compensation cost related to non-vested equity awards				$ 300,000
2014 Employee Stock Purchase Plan
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Total unrecognized compensation cost related to non-vested equity awards				$ 400,000
Total unrecognized compensation cost, weighted-average vesting period				1 year 2 months 12 days
Shares issued to employees				84,247
Shares remaining available for future purchases				98,227
2014 Employee Stock Purchase Plan \| The commencement of the offer period (generally, the sixteenth day in February or August)
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Purchase price per share as percentage of fair market value of common stock		85.00%
2014 Employee Stock Purchase Plan \| The exercise date, which is the last day of a purchase period (generally, the fifteenth day in February or August)
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Purchase price per share as percentage of fair market value of common stock		85.00%

Option Activity under Stock-Based Compensation Plans (Detail) $ / shares in Units, shares in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2017 USD ($) $ / shares shares
Shares Underlying Outstanding Options
Beginning balance \| shares	3,975
Options granted \| shares	535
Options exercised \| shares	(144)
Ending balance \| shares	3,555
Vested and expected to vest at December 31, 2017 \| shares	3,533
Exercisable at December 31, 2017 \| shares	2,294
Weighted-Average Exercise Price Per Share
Beginning balance \| $ / shares	$ 21.38
Options granted \| $ / shares	12.23
Options exercised \| $ / shares	14.28
Ending balance \| $ / shares	19.56
Vested and expected to vest at December 31, 2017 \| $ / shares	19.56
Exercisable at December 31, 2017 \| $ / shares	$ 21.35
Weighted-Average Remaining Contractual Term (years)
Balance at December 31, 2017	6 years 14 days
Vested and expected to vest at December 31, 2017	6 years 14 days
Exercisable at December 31, 2017	5 years 9 months 7 days
Aggregate Intrinsic Value
Balance at December 31, 2017 \| $	$ 7,477
Vested and expected to vest at December 31, 2017 \| $	7,468
Exercisable at December 31, 2017 \| $	$ 2,702
Unvested
Shares Underlying Outstanding Options
Options cancelled \| shares	(400)
Weighted-Average Exercise Price Per Share
Options cancelled \| $ / shares	$ 18.30
Vested
Shares Underlying Outstanding Options
Options cancelled \| shares	(411)
Weighted-Average Exercise Price Per Share
Options cancelled \| $ / shares	$ 30.78

Summary of Restricted Stock Units Activity (Detail) - Restricted Stock Units (RSUs) - $ / shares shares in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Number of Shares
Non-vested, Beginning Balance	699
Granted	2,217
Vested	(188)
Forfeited	(285)
Non-vested, Ending Balance	2,443	699
Weighted-Average Grant-Date Fair Value
Non-vested, Beginning Balance	$ 12.12
Granted	5.34	$ 12.42	$ 20.05
Vested	18.24
Forfeited	7.74
Non-vested, Ending Balance	$ 6.01	$ 12.12

Fair Value-Based Measurements and Weighted-Average Assumptions (Detail) - $ / shares	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Employee Stock Purchase Plan
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Weighted-average fair value	$ 3.05	$ 7.86	$ 9.18
Risk-free interest rate	1.00%	0.60%	0.40%
Expected life (in years)	1 year 2 months 12 days	1 year 2 months 12 days	1 year 2 months 12 days
Expected Volatility	1.00%	0.60%	0.60%
Stock Options
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Weighted-average fair value	$ 8.27	$ 9.54	$ 13.37
Risk-free interest rate	1.90%	1.40%	1.70%
Expected life (in years)	4 years 6 months	4 years 10 months 24 days	5 years 10 months 24 days
Expected Volatility	0.90%	0.70%	0.70%

Stock-Based Compensation Expense (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Deferred Compensation Arrangement With Individual Share Based Payments [Line Items]
Stock-based compensation expense	$ 14,917	$ 14,126	$ 9,316
Employees And Directors
Deferred Compensation Arrangement With Individual Share Based Payments [Line Items]
Stock-based compensation expense	14,917	14,126	9,316
Research and Development
Deferred Compensation Arrangement With Individual Share Based Payments [Line Items]
Stock-based compensation expense	7,827	6,742	4,123
Selling, General and Administrative
Deferred Compensation Arrangement With Individual Share Based Payments [Line Items]
Stock-based compensation expense	$ 7,090	$ 7,384	$ 5,193

Employee Benefit Plan - Additional Information (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Pension And Other Postretirement Benefit Expense [Abstract]
Contributions to 401 (k) plan	$ 0.2	$ 0.2	$ 0.2

Restructuring - Additional Information (Detail) - USD ($) $ in Thousands	1 Months Ended	3 Months Ended	12 Months Ended
	Jan. 31, 2017	Mar. 31, 2017	Dec. 31, 2017
Restructuring Cost And Reserve [Line Items]
Percentage of reduction in global workforce	40.00%
Restructuring			$ 2,783
Employee Severance and Other Benefits
Restructuring Cost And Reserve [Line Items]
Restructuring		$ 2,800
Cash payments			$ 2,800

Component of Consolidated Income (Loss) Before Provision for Income Taxes (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Income Tax Disclosure [Abstract]
U.S.	$ (95,898)	$ (114,484)	$ (107,450)
Non U.S.	744	2,040	656
Total	$ (95,154)	$ (112,444)	$ (106,794)

Income Taxes - Additional Information (Detail) - USD ($)	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Income Tax Disclosure [Line Items]
Income tax expense		$ 0	$ 0	$ 0
Increase (decrease) in valuation allowance		$ (108,800,000)	36,400,000	$ 36,200,000
Federal corporate income tax rate		35.00%
Tax act, net deferred tax assets		$ 87,000,000
Tax act, deferred tax assets valuation allowance		87,000,000
Tax act, repatriation of undistributed earnings and profits of U.S. owned foreign corporations		700,000
Unrecognized tax benefits		1,229,000	$ 2,426,000
Unrecognized tax benefits would affect the effective tax rate		0
Interest related to unrecognized tax benefits		0
Penalties related to unrecognized tax benefits		0
Federal
Income Tax Disclosure [Line Items]
Net operating loss carryforwards		$ 629,100,000
Federal \| Minimum
Income Tax Disclosure [Line Items]
Net operating loss carryforwards, expiration year		2018
Federal \| Maximum
Income Tax Disclosure [Line Items]
Net operating loss carryforwards, expiration year		2037
Federal \| Research And Development Tax Credits
Income Tax Disclosure [Line Items]
Tax credit carryforward amount		$ 16,900,000
Federal \| Research And Development Tax Credits \| Minimum
Income Tax Disclosure [Line Items]
Tax credit carryforward amount, expiration year		2018
Federal \| Research And Development Tax Credits \| Maximum
Income Tax Disclosure [Line Items]
Tax credit carryforward amount, expiration year		2037
California and Other States
Income Tax Disclosure [Line Items]
Net operating loss carryforwards		$ 168,400,000
California and Other States \| Minimum
Income Tax Disclosure [Line Items]
Net operating loss carryforwards, expiration year		2026
California and Other States \| Maximum
Income Tax Disclosure [Line Items]
Net operating loss carryforwards, expiration year		2037
California State \| Research And Development Tax Credits
Income Tax Disclosure [Line Items]
Tax credit carryforward amount		$ 17,400,000
Foreign
Income Tax Disclosure [Line Items]
Net operating loss carryforwards		$ 15,500,000
New Corporate Tax Rate
Income Tax Disclosure [Line Items]
Federal corporate income tax rate	21.00%

Difference between Consolidated Income Tax Benefit and Amount Computed by Federal Statutory Income Tax Rate (Detail) - USD ($)	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Income Tax Disclosure [Abstract]
Income tax benefit at federal statutory rate	$ (32,352,000)	$ (38,183,000)	$ (36,301,000)
State tax	(4,482,000)	(334,000)	(394,000)
Business credits	(1,960,000)	(1,950,000)	(2,622,000)
Deferred compensation charges	3,823,000	3,016,000	1,481,000
Change in valuation allowance	(109,165,000)	36,751,000	36,766,000
Rate change	86,943,000
Net operating loss and tax credit limitation	56,962,000
Other	231,000	700,000	1,070,000
Total income tax expense	$ 0	$ 0	$ 0

Component of Deferred Tax Assets and Liabilities (Detail) - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016
Deferred tax assets:
Net operating loss carry forwards	$ 146,300	$ 249,510
Research tax credit carry forwards	29,658	29,463
Accruals and reserves	6,551	8,684
Capitalized research costs	1,422	4,457
Other	731	1,303
Total deferred tax assets	184,662	293,417
Less valuation allowance	(184,388)	(293,145)
Net deferred tax assets	274	272
Deferred tax liabilities:
Fixed assets	(274)	(272)
Total deferred tax liabilities	$ (274)	$ (272)

Schedule of Unrecognized Tax Benefits (Detail) $ in Thousands	12 Months Ended
	Dec. 31, 2017 USD ($)
Income Tax Disclosure [Abstract]
Balance at December 31, 2016	$ (2,426)
Tax positions related to the prior year, Reductions	1,197
Balance at December 31, 2017	$ (1,229)

Selected Quarterly Financial Data (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Quarterly Financial Information Disclosure [Abstract]
Revenues	$ 21	$ 53	$ 105	$ 148	$ 7,292	$ 162	$ 2,647	$ 942	$ 327	$ 11,043	$ 4,050
Net loss	$ (27,421)	$ (22,128)	$ (20,318)	$ (25,287)	$ (21,741)	$ (34,694)	$ (28,986)	$ (27,023)	$ (95,154)	$ (112,444)	$ (106,794)
Basic and diluted net loss per share	$ (0.45)	$ (0.38)	$ (0.41)	$ (0.60)	$ (0.56)	$ (0.90)	$ (0.75)	$ (0.70)	$ (1.81)	$ (2.92)	$ (3.25)
Weighted average shares used to compute basic and diluted net loss per share	61,007	57,650	49,700	41,830	38,544	38,512	38,496	38,472	52,613	38,506	32,881

Subsequent Events - Additional Information (Detail) - USD ($) $ in Millions		1 Months Ended	3 Months Ended
	Feb. 20, 2018	Feb. 28, 2018	Mar. 31, 2020	Mar. 31, 2019
Scenario, Forecast \| Sublicense Agreement
Subsequent Event [Line Items]
Payment upon obligation			$ 7.0	$ 7.0
Subsequent Event \| Sublicense Agreement
Subsequent Event [Line Items]
Payment upon obligation		$ 7.0
Subsequent Event \| CRG Servicing LLC
Subsequent Event [Line Items]
Debt instrument, face amount	$ 175.0
Maximum borrowing capacity	175.0
Current borrowing capacity	100.0
Additional borrowing capacity	$ 75.0
Debt maturity date	Dec. 31, 2023
Debt interest rate	9.50%