| Exhibit 99.1 |
| DYNAVAX |
| DYNAVAX TECHNOLOGIES 2929 Seventh Street, Suite 100 Berkeley, CA 94710 |
| Contact: Jennifer Lew Vice President, Finance 510-665-7217 jlew@dynavax.com |
DYNAVAX REPORTS 2010 THIRD QUARTER FINANCIAL RESULTS
BERKELEY, CA – November 4, 2010 – Dynavax Technologies Corporation (NASDAQ: DVAX) today reported financial results for the third quarter ended September 30, 2010, including $47.2 million in cash, cash equivalents and marketable securities. This compared to $57.4 million at June 30, 2010. In November 2010, the Company received $42.7 million from the successful completion of a public offering and a grant covering certain research costs, resulting in current cash, cash equivalents and marketable securities in excess of $83 million as of the date of this release.
In particular, the $47.2 million in reported cash at September 30, 2010 does not reflect the net proceeds of $42.0 million from the Company’s public offering and $0.7 million in grants under The Patient Protection and Affordable Care Act of 2010 covering research and development costs from 2009 and 2010 for three of the Company’s qualified therapeutic discovery projects including HEPLISAVTM. The $10.2 million net cash usage reported for the third quarter 2010 included a $2.0 million initial purchase of the Company’s common stock by Aspire Capital Fund, LLC that the Company received upon executing its September 2010 financing arrangement.
Total revenues of $11.6 million for the third quarter 2010 included recognition of the $10.0 million upfront payment received from AstraZeneca in 2006 following the recent amendment of our collaboration agreement. This compared to $2.9 million reported for the third quarter in 2009.
Total operating expenses of $18.4 million for the third quarter 2010, driven by continued clinical and manufacturing activities for HEPLISAV, were consistent with the $18.5 million reported for the second quarter 2010. Total operating expenses for the third quarter 2009 of $13.6 million were lower prior to restarting the HEPLISAV clinical program in September 2009.
The tables included as part of this press release provide a reconciliation of GAAP revenues and operating expenses topro forma revenues and operating expenses.
| About Dynavax |
Dynavax Technologies Corporation, a clinical-stage biopharmaceutical company, discovers and develops novel products to prevent and treat infectious diseases. The company's lead product candidate is HEPLISAV, a Phase 3 investigational adult hepatitis B vaccine designed to enhance protection more rapidly and with fewer doses than current licensed vaccines. For more information visitwww.dynavax.com.
– tables to follow –
| DYNAVAX TECHNOLOGIES CORPORATION | ||||||||||||||
| CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||||||||
| (In thousands, except per share amounts) | ||||||||||||||
| (Unaudited) | ||||||||||||||
| Three Months Ended | Nine Months Ended | |||||||||||||
| September 30, | September 30, | |||||||||||||
| 2010 | 2009 | 2010 | 2009 | |||||||||||
| Revenues: | ||||||||||||||
| Collaboration revenue | $ | 10,402 | $ | 1,791 | $ 19,164 | $ | 34,079 | |||||||
| Grant revenue | 1,218 | 887 | 2,697 | 2,921 | ||||||||||
| Service and license revenue | 29 | 223 | 323 | 1,129 | ||||||||||
| Total revenues | 11,649 | 2,901 | 22,184 | 38,129 | ||||||||||
| Operating expenses: | ||||||||||||||
| Research and development | 14,204 | 9,631 | 40,729 | 29,202 | ||||||||||
| General and administrative | 3,951 | 3,736 | 12,694 | 11,693 | ||||||||||
| Amortization of intangible assets | 245 | 245 | 735 | 735 | ||||||||||
| Total operating expenses | 18,400 | 13,612 | 54,158 | 41,630 | ||||||||||
| Loss from operations | (6,751) | (10,711) | (31,974) | (3,501) | ||||||||||
| Interest income | 12 | 18 | 53 | 174 | ||||||||||
| Interest expense | (399) | (93) | (1,229) | (120) | ||||||||||
| Other income (expense) | 2,140 | 80 | (9,036) | (40) | ||||||||||
| Net loss | (4,998) | (10,706) | (42,186) | (3,487) | ||||||||||
| Add: Losses attributed to noncontrolling interest in | ||||||||||||||
| SDI | — | 1,200 | — | 3,192 | ||||||||||
| Net loss attributable to Dynavax | $ | (4,998) | $ | (9,506) | $ (42,186) | $ | (295) | |||||||
| Basic and diluted net loss per share attributable to | ||||||||||||||
| Dynavax stockholders | $ | (0.06) | $ | (0.24) | $ (0.57) | $ | (0.01) | |||||||
| Shares used to compute basic and diluted net loss | ||||||||||||||
| per share attributable to Dynavax stockholders | 86,826 | 40,153 | 74,519 | 39,990 | ||||||||||
| – more – | ||||||||||||||
| DYNAVAX TECHNOLOGIES CORPORATION | ||||||||||||||||
| RECONCILIATION OF GAAP REVENUES TO PRO FORMA REVENUES | ||||||||||||||||
| (In thousands) | ||||||||||||||||
| (Unaudited) | ||||||||||||||||
| Three Months Ended | Nine Months Ended | |||||||||||||||
| September 30, | September 30, | |||||||||||||||
| 2010 | 2009 | 2010 | 2009 | |||||||||||||
| GAAP revenues | $ | 11,649 | $ | 2,901 | $ | 22,184 | $ | 38,129 | ||||||||
| ADD: | ||||||||||||||||
| Collaboration funding incurred under SDI programs | — | 1,009 | — | 2,551 | ||||||||||||
| LESS: | ||||||||||||||||
| Non-cash deferred revenue from collaborations | 10,000 | — | 10,000 | 28,485 | ||||||||||||
| Pro formarevenues (1) | $ | 1,649 | $ | 3,910 | $ | 12,184 | $ | 12,195 | ||||||||
| (1) | These pro forma amounts are intended to illustrate the Company’s revenues including collaboration funding provided for the SDI programs and excluding certain non-cash items. The collaboration funding is reflected in the amount attributed to the noncontrolling interest in SDI in the Company’s consolidated statement of operations, but would have been reported as revenue if SDI’s results of operations were not consolidated with those of the Company. Management of the Company believes the pro forma results are a more useful measure of the Company’s revenues because it provides investors the ability to evaluate the Company’s operations in the manner that management uses to assess the continued progress of operating programs. |
| These pro forma results are not in accordance with, or an alternative for, generally accepted accounting principles and may be different from pro forma measures used by other companies. | |
DYNAVAX TECHNOLOGIES CORPORATION
RECONCILIATION OF GAAP OPERATING EXPENSES TO PRO FORMA OPERATING EXPENSES
(In thousands) (Unaudited)
| Three Months Ended | Nine Months Ended | |||||||
| September 30, | September 30, | |||||||
| 2010 | 2009 | 2010 | 2009 | |||||
| GAAP operating expenses | $ 18,400 | $ 13,612 | $ 54,158 | $ 41,630 | ||||
| LESS: | ||||||||
| Stock-based compensation expense | 586 | 916 | 1,552 | 2,102 | ||||
| Amortization of intangible assets | 245 | 245 | 735 | 735 | ||||
| Pro formaoperating expenses (2) | $ 17,569 | $ 12,451 | $ 51,871 | $ 38,793 | ||||
| (2) | These pro forma amounts are intended to illustrate the Company’s operating expenses excluding certain non-cash charges in accordance with the financial statements that management uses to evaluate the Company’s operations. These pro forma results are not in accordance with, or an alternative for, generally accepted accounting principles and may be different from pro forma measures used by other companies. |
| – more – |
| DYNAVAX TECHNOLOGIES CORPORATION | ||||||||
| SELECTED BALANCE SHEET DATA | ||||||||
| (In thousands) | ||||||||
| (Unaudited) | ||||||||
| September 30, | December 31, | |||||||
| 2010 | 2009 | |||||||
| Assets | ||||||||
| Cash and cash equivalents and marketable securities | $ | 47,231 | $ | 36,720 | ||||
| Property and equipment, net | 6,634 | 7,997 | ||||||
| Goodwill | 2,312 | 2,312 | ||||||
| Other intangible assets, net | 544 | 1,279 | ||||||
| Other assets | 5,069 | 2,162 | ||||||
| Total assets | $ | 61,790 | $ | 50,470 | ||||
| Liabilities and stockholders’ equity | ||||||||
| Accounts payable | $ | 2,067 | $ | 1,686 | ||||
| Accrued liabilities | 17,530 | 7,507 | ||||||
| Warrant liability to Holdings | — | 2,567 | ||||||
| Current portion of deferred revenue | 1,429 | 2,718 | ||||||
| Noncurrent portion of deferred revenue | 6,012 | 17,083 | ||||||
| Long-term note payable to Holdings | 10,540 | 9,342 | ||||||
| Long-term contingent liability to Holdings | 944 | 3,040 | ||||||
| Other long-term liabilities | 60 | 151 | ||||||
| Stockholders’ equity | 23,208 | 6,376 | ||||||
| Total liabilities and stockholders’ equity | $ | 61,790 | $ | 50,470 | ||||
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