Dynavax Reports Second Quarter 2012 Financial Results

BERKELEY, CA--(Marketwire - Aug 1, 2012) - Dynavax Technologies Corporation (NASDAQ: DVAX) today reported financial results for the second quarter ended June 30, 2012. The Company had $160.2 million in cash, cash equivalents and marketable securities as of June 30, 2012 as compared to $114.0 million at December 31, 2011. Total cash for the second quarter of 2012 included $69.6 million in net proceeds from the sale of 17,500,000 shares of common stock.

Total revenues were $2.7 million and $5.0 million for the three and six months ended June 30, 2012, respectively, compared to $7.3 million and $9.0 million, respectively, reported for the same periods of 2011. Revenues for the second quarter and first half of 2011 included a $6 million milestone earned under the Company's collaboration with GlaxoSmithKline.

Research and development expenses were $11.4 million and $23.8 million for the three and six months ended June 30, 2012, respectively. This compared to $13.3 million and $27.9 million, respectively, reported for the same periods of 2011. Research and development expenses decreased primarily due to the significant decline in clinical activities for HEPLISAV™.

General and administrative expenses were $6.0 million and $11.8 million for the second quarter and first half of 2012, respectively, compared to $4.1 million and $8.8 million, respectively, in the same periods of the prior year. General and administrative expenses increased primarily due to growth in commercial development expenses.

About HEPLISAV

HEPLISAV is an investigational adult hepatitis B vaccine for which a U.S. BLA has been accepted for review by the FDA and a Marketing Authorization Application (MAA) has been submitted. In Phase 3 trials, HEPLISAV demonstrated higher and earlier protection with fewer doses than currently licensed vaccines. Dynavax has worldwide commercial rights to HEPLISAV. HEPLISAV combines hepatitis B surface antigen with a proprietary Toll-like Receptor 9 agonist known to enhance the immune response.

About Dynavax

Dynavax Technologies Corporation, a clinical-stage biopharmaceutical company, discovers and develops novel products to prevent and treat infectious and inflammatory diseases. The Company's lead product candidate is HEPLISAV, a Phase 3 investigational adult hepatitis B vaccine designed to provide rapid and earlier protection with fewer doses than currently licensed vaccines. For more information visit www.dynavax.com.

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DYNAVAX TECHNOLOGIES CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share amounts)
(Unaudited)
			Three Months Ended June 30,								Six Months Ended June 30,
			2012				2011				2012				2011
Revenues:
	Collaboration revenue		$	1,623			$	6,363			$	2,552			$	6,729
	Grant revenue			882				890				1,969				1,779
	Service and license revenue			179				16				513				505
Total revenues				2,684				7,269				5,034				9,013
Operating expenses:
	Research and development			11,376				13,257				23,781				27,929
	General and administrative			5,957				4,054				11,750				8,808
	Amortization of intangible assets			-				54				-				299
Total operating expenses				17,333				17,365				35,531				37,036
Loss from operations				(14,649	)			(10,096	)			(30,497	)			(28,023	)
Interest income				65				23				117				56
Interest expense				(589	)			(487	)			(1,176	)			(977	)
Other income (expense)				63				(75	)			(59	)			(157	)
Net loss			$	(15,110	)		$	(10,635	)		$	(31,615	)		$	(29,101	)
Basic and diluted net loss per share			$	(0.09	)		$	(0.09	)		$	(0.20	)		$	(0.25	)
Shares used to compute basic and diluted net loss per share				167,697				117,864				161,564				116,801

DYNAVAX TECHNOLOGIES CORPORATION
SELECTED BALANCE SHEET DATA
(In thousands)
(Unaudited)
			June 30,			December 31,
			2012			2011
Assets
	Cash and cash equivalents and marketable securities		$	160,199		$	113,961
	Property and equipment, net			6,833			6,163
	Goodwill			2,356			2,312
	Other assets			6,507			11,666
Total assets			$	175,895		$	134,102
Liabilities and stockholders' equity
	Accounts payable		$	1,155		$	2,040
	Accrued liabilities			7,956			8,776
	Current portion of deferred revenue			2,859			4,210
	Non-current portion of deferred revenue			5,312			6,386
	Short-term note payable to Holdings			13,905			12,810
	Stockholders' equity			144,708			99,880
Total liabilities and stockholders' equity			$	175,895		$	134,102