Document_and_Entity_Informatio
Document and Entity Information | 9 Months Ended | |
Sep. 30, 2013 | Oct. 31, 2013 | |
Document Information [Line Items] | ' | ' |
Document Type | '10-Q | ' |
Amendment Flag | 'false | ' |
Document Period End Date | 30-Sep-13 | ' |
Document Fiscal Year Focus | '2013 | ' |
Document Fiscal Period Focus | 'Q3 | ' |
Trading Symbol | 'DVAX | ' |
Entity Registrant Name | 'DYNAVAX TECHNOLOGIES CORP | ' |
Entity Central Index Key | '0001029142 | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Filer Category | 'Accelerated Filer | ' |
Entity Common Stock, Shares Outstanding | ' | 262,625,110 |
Condensed_Consolidated_Balance
Condensed Consolidated Balance Sheets (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Current assets: | ' | ' |
Cash and cash equivalents | $12,191 | $7,599 |
Marketable securities available-for-sale | 64,283 | 117,531 |
Accounts receivable | 2,159 | 1,005 |
Prepaid expenses and other current assets | 1,120 | 2,052 |
Total current assets | 79,753 | 128,187 |
Property and equipment, net | 8,454 | 7,965 |
Goodwill | 2,532 | 2,475 |
Restricted cash | 657 | 652 |
Other assets | 302 | 473 |
Total assets | 91,698 | 139,752 |
Current liabilities: | ' | ' |
Accounts payable | 1,289 | 2,166 |
Accrued liabilities | 8,148 | 10,063 |
Deferred revenues | 6,126 | 6,785 |
Total current liabilities | 15,563 | 19,014 |
Deferred revenues, noncurrent | 2,751 | 5,283 |
Other long-term liabilities | 988 | 629 |
Total liabilities | 19,302 | 24,926 |
Commitments and contingencies (Note 5) | ' | ' |
Stockholders’ equity: | ' | ' |
Preferred stock: $0.001 par value; 5,000 shares authorized and no shares issued and outstanding at September 30, 2013 and December 31, 2012 | ' | ' |
Common stock: $0.001 par value; 350,000 and 250,000 shares authorized at September 30, 2013 and December 31, 2012, respectively; 183,055 and 182,792 shares issued and outstanding at September 30, 2013 and December 31, 2012, respectively | 183 | 183 |
Additional paid-in capital | 561,687 | 550,729 |
Accumulated other comprehensive loss: | ' | ' |
Unrealized gain on marketable securities available-for-sale | 22 | 45 |
Cumulative translation adjustment | -341 | -640 |
Total accumulated other comprehensive loss | -319 | -595 |
Accumulated deficit | -489,155 | -435,491 |
Total stockholders’ equity | 72,396 | 114,826 |
Total liabilities and stockholders’ equity | $91,698 | $139,752 |
Condensed_Consolidated_Balance1
Condensed Consolidated Balance Sheets (Parenthetical) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, except Per Share data, unless otherwise specified | ||
Preferred stock, par value | $0.00 | $0.00 |
Preferred stock, shares authorized | 5,000 | 5,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value | $0.00 | $0.00 |
Common stock, shares authorized | 350,000 | 250,000 |
Common stock, shares issued | 183,055 | 182,792 |
Common stock, shares outstanding | 183,055 | 182,792 |
Condensed_Consolidated_Stateme
Condensed Consolidated Statements of Operations (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Revenues: | ' | ' | ' | ' |
Collaboration revenue | $1,110 | $1,050 | $3,349 | $3,602 |
Grant revenue | 1,700 | 1,219 | 3,855 | 3,188 |
Service and license revenue | 117 | 605 | 1,200 | 1,118 |
Total | 2,927 | 2,874 | 8,404 | 7,908 |
Operating expenses: | ' | ' | ' | ' |
Research and development | 11,770 | 12,850 | 38,739 | 36,631 |
General and administrative | 5,807 | 7,121 | 22,243 | 18,871 |
Unoccupied facility expense | 918 | ' | 918 | ' |
Total operating expenses | 18,495 | 19,971 | 61,900 | 55,502 |
Loss from operations | -15,568 | -17,097 | -53,496 | -47,594 |
Interest income | 37 | 91 | 163 | 208 |
Interest expense | -24 | -589 | -83 | -1,765 |
Other expense | -120 | -196 | -248 | -255 |
Net loss | ($15,675) | ($17,791) | ($53,664) | ($49,406) |
Basic and diluted net loss per share | ($0.09) | ($0.10) | ($0.29) | ($0.30) |
Weighted-average shares used to compute basic and diluted net loss per share | 183,022 | 177,870 | 182,960 | 167,039 |
Condensed_Consolidated_Stateme1
Condensed Consolidated Statements of Comprehensive Loss (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Net loss | ($15,675) | ($17,791) | ($53,664) | ($49,406) |
Other comprehensive income (loss): | ' | ' | ' | ' |
Unrealized gain (loss) on marketable securities available-for-sale | 18 | 59 | -23 | 32 |
Cumulative translation adjustment | 473 | 249 | 299 | 38 |
Other comprehensive income | 491 | 308 | 276 | 70 |
Total comprehensive loss | ($15,184) | ($17,483) | ($53,388) | ($49,336) |
Condensed_Consolidated_Stateme2
Condensed Consolidated Statements of Cash Flows (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 |
Operating activities | ' | ' |
Net loss | ($53,664) | ($49,406) |
Adjustments to reconcile net loss to net cash used in operating activities: | ' | ' |
Depreciation and amortization | 986 | 898 |
Gain on disposal of property and equipment | 4 | 6 |
Accretion of discounts and amortization of premiums of marketable securities | 692 | 970 |
Interest associated with long-term note payable to Holdings | ' | 1,642 |
Unoccupied facility expense | 918 | ' |
Stock compensation expense | 10,847 | 6,294 |
Changes in operating assets and liabilities: | ' | ' |
Accounts receivable | -1,154 | 5,842 |
Prepaid expenses and other current assets | 932 | -1,289 |
Restricted cash and other assets | 166 | -74 |
Accounts payable | -877 | -462 |
Accrued liabilities and other long term liabilities | -2,489 | 1,011 |
Deferred revenues | -3,191 | -1,649 |
Net cash used in operating activities | -46,830 | -36,217 |
Investing activities | ' | ' |
Purchases of marketable securities | -48,573 | -169,634 |
Proceeds from maturities of marketable securities | 101,105 | 127,085 |
Purchases of property and equipment, net | -1,316 | -1,727 |
Net cash provided by (used in) investing activities | 51,216 | -44,276 |
Financing activities | ' | ' |
Payments and proceeds from issuances of common stock and warrants, net of issuance costs | -143 | 71,124 |
Proceeds from exercise of stock options and restricted stock awards | 30 | 1,789 |
Proceeds from employee stock purchase plan | 224 | 307 |
Net cash provided by financing activities | 111 | 73,220 |
Effect of exchange rate on cash and cash equivalents | 95 | -18 |
Net increase (decrease) in cash and cash equivalents | 4,592 | -7,291 |
Cash and cash equivalents at beginning of year | 7,599 | 31,941 |
Cash and cash equivalents at end of year | 12,191 | 24,650 |
Non-cash investing and financing activities: | ' | ' |
Disposal of fully depreciated property and equipment | 8 | 29 |
Net change in unrealized gain on marketable securities | ($23) | $32 |
Organization_and_Summary_of_Si
Organization and Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2013 | |
Organization and Summary of Significant Accounting Policies | ' |
1. Organization and Summary of Significant Accounting Policies | |
Dynavax Technologies Corporation (“we,” “our,” “us,” Dynavax” or the “Company”), a clinical-stage biopharmaceutical company that discovers and develops novel products to prevent and treat infectious and inflammatory diseases and cancer. Our lead product candidate is HEPLISAV™, a hepatitis B vaccine product candidate in Phase 3 development. | |
In addition to HEPLISAV, our pipeline comprises clinical-stage product candidates including an autoimmune program partnered with GlaxoSmithKline, an asthma program partnered with AstraZeneca AB and a cancer immunotherapy program as well as a preclinical development program utilizing nanoparticle adjuvant technology. We compete with pharmaceutical companies, biotechnology companies, academic institutions and research organizations in developing therapies to prevent or treat infectious and inflammatory diseases and cancer. | |
Basis of Presentation | |
Our accompanying unaudited condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information and pursuant to the instructions to Form 10-Q and Article 10 of Regulation S-X. In our opinion, these unaudited condensed consolidated financial statements include all adjustments, consisting only of normal recurring adjustments, which we consider necessary to fairly state our financial position and the results of our operations and cash flows. As permitted under those rules, certain footnotes or other financial information that are normally required by GAAP can be condensed or omitted. Interim-period results are not necessarily indicative of results of operations or cash flows for a full-year period or any other interim-period. The condensed consolidated balance sheet at December 31, 2012, has been derived from audited financial statements at that date, but excludes disclosures required by GAAP for complete financial statements. | |
The unaudited condensed consolidated financial statements and these notes should be read in conjunction with our Annual Report on Form 10-K for the year ended December 31, 2012, as filed with the Securities and Exchange Commission (the “SEC”). | |
The unaudited condensed consolidated financial statements include the accounts of Dynavax and our wholly-owned subsidiaries, Rhein Biotech GmbH (“Rhein” or “Dynavax Europe”) and Dynavax International, B.V. All significant intercompany accounts and transactions have been eliminated. We operate in one business segment, which is the discovery and development of biopharmaceutical products. | |
Liquidity and Financial Condition | |
We have incurred significant operating losses and negative cash flows from operations since our inception. As of September 30, 2013, we had cash, cash equivalents and marketable securities of $76.5 million. We currently estimate that we have sufficient cash resources to meet our anticipated cash needs through at least the next 12 months based on cash, cash equivalents and marketable securities on hand as of September 30, 2013 and anticipated revenues and funding from existing agreements. | |
We expect to continue to spend substantial funds in connection with the development and manufacturing of our product candidates, particularly HEPLISAV, various human clinical trials for our product candidates and protection of our intellectual property. In order to continue development of our product candidates, including HEPLISAV, and depending upon the cost and timing of an additional clinical study for HEPLISAV, we may need to raise additional funds. This may occur through strategic alliance and licensing arrangements and/or future public or private financings. Sufficient additional funding may not be available on acceptable terms, or at all. Additional equity financings, if completed, could result in significant dilution or otherwise adversely affect the rights of existing shareholders. If adequate funds are not available in the future, we may need to delay, reduce the scope of or put on hold the HEPLISAV program or our other development programs while we seek strategic alternatives. | |
Use of Estimates | |
The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the unaudited condensed consolidated financial statements and accompanying notes. Actual results may differ materially from these estimates and assumptions. On an ongoing basis, we evaluate our estimates, including those related to revenue recognition, research and development activities, stock-based compensation, asset impairment, contingencies and the valuation of certain liabilities. | |
Summary of Significant Accounting Policies | |
There have been no significant changes in our significant accounting policies during the nine months ended September 30, 2013, as compared with those disclosed in our Annual Report on Form 10-K for the year ended December 31, 2012. | |
Revenue Recognition | |
Our revenues consist of amounts earned from collaborations, grants and fees from services and licenses. We enter into license and manufacturing agreements and collaborative research and development arrangements with pharmaceutical and biotechnology partners that may involve multiple deliverables. Our arrangements may include one or more of the following elements: upfront license payments, cost reimbursement for the performance of research and development activities, milestone payments, other contingent payments, contract manufacturing service fees, royalties and license fees. Each deliverable in the arrangement is evaluated to determine whether it meets the criteria to be accounted for as a separate unit of accounting or whether it should be combined with other deliverables. In order to account for the multiple-element arrangements, the Company identifies the deliverables included within the arrangement and evaluates which deliverables represent separate units 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. We recognize revenue when there is persuasive evidence that an arrangement exists, delivery has occurred or services have been rendered, the price is fixed or determinable and collectability is reasonably assured. | |
On January 1, 2011, we adopted on a prospective basis Financial Accounting Standards Board (“FASB”) Accounting Standards Update (“ASU”) 2009-13, Multiple-Deliverable Revenue Arrangements, which amends the criteria related to identifying separate units of accounting and provides guidance on whether multiple deliverables exist, how an arrangement should be separated and the consideration allocated. | |
Non-refundable upfront fees received for license and collaborative agreements entered into prior to January 1, 2011 and other payments under collaboration agreements where we have continuing performance obligations related to the payments are deferred and recognized over our expected performance period. Revenue is recognized on a ratable basis, unless we determine that another methodology is more appropriate, through the date at which our performance obligations are completed. Management makes its best estimate of the period over which we expect to fulfill our performance obligations, which may include clinical development activities. Given the uncertainties of research and development collaborations, significant judgment is required to determine the duration of the performance period. We recognize cost reimbursement revenue under collaborative agreements as the related research and development costs are incurred, as provided for under the terms of these agreements. | |
On January 1, 2011, we elected to prospectively adopt the milestone method as described in FASB ASU 2010-17, Milestone Method of Revenue Recognition. Under the milestone method, contingent consideration received from the achievement of a substantive milestone is recognized in its entirety in the period in which the milestone is achieved. A milestone is defined as an event having all of the following characteristics: (i) there is substantive uncertainty at the date the arrangement is entered into that the event will be achieved, (ii) the event can only be achieved based in whole or in part on either the entity’s performance or a specific outcome resulting from the entity’s performance and (iii) if achieved, the event would result in additional payments being due to the entity. | |
Our license and collaboration agreements with our partners provide for payments to be paid to us upon the achievement of development milestones. Given the challenges inherent in developing biologic products, there is substantial uncertainty whether any such milestones will be achieved at the time we entered into these agreements. In addition, we evaluate whether the development milestones meet the criteria to be considered substantive. The conditions include: (i) the development 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. As a result of our analysis, we consider our development milestones to be substantive and, accordingly, we expect to recognize as revenue future payments received from such milestones as we achieve each milestone. | |
Milestone payments that are contingent upon the achievement of substantive at-risk performance criteria are recognized in full upon achievement of those milestone events in accordance with the terms of the agreement and assuming all other revenue recognition criteria have been met. All revenue recognized to date under our collaborative agreements has been nonrefundable. | |
Our license and collaboration agreements with certain partners also provide for contingent payments to be paid to us based solely upon the performance of our partner. For such contingent payments we expect to recognize the payments as revenue upon receipt, provided that collection is reasonably assured and the other revenue recognition criteria have been satisfied. | |
Revenues from manufacturing services are recognized upon meeting the criteria for substantial performance and acceptance by the customer. | |
Revenue from royalty payments is contingent on future sales activities by our licensees. As a result, we recognize royalty revenue when reported by our licensees and when collection is reasonably assured. | |
Revenue from government and private agency grants are recognized as the related research expenses are incurred and to the extent that funding is approved. Additionally, we recognize revenue based on the facilities and administrative cost rate reimbursable per the terms of the grant awards. | |
Recent Accounting Pronouncements | |
In February 2013, the FASB issued ASU 2013-02, “Reporting of Amounts Reclassified out of Accumulated Other Comprehensive Income.” This ASU expands the presentation of changes in accumulated other comprehensive income. The new guidance requires an entity to disaggregate the total change of each component of other comprehensive income either on the face of the statement of operations or as a separate disclosure in the financial statement footnotes. ASU 2013-02 is effective for fiscal years beginning after December 15, 2012. The Company adopted this guidance in the first quarter of 2013 and the adoption did not have any impact on our financial position, results of operations or cash flows as there were no amounts reclassified out of accumulated other comprehensive income during the periods ended September 30, 2013 and 2012. |
Fair_Value_Measurements
Fair Value Measurements | 9 Months Ended | ||||||||||||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||||||||||||
Fair Value Measurements | ' | ||||||||||||||||||||||||||||||||
2. Fair Value Measurements | |||||||||||||||||||||||||||||||||
The Company defines 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 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—Quoted prices in active markets for identical assets or liabilities; | |||||||||||||||||||||||||||||||||
Level 2—Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities; and | |||||||||||||||||||||||||||||||||
Level 3—Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. | |||||||||||||||||||||||||||||||||
Recurring Fair Value Measurements | |||||||||||||||||||||||||||||||||
The following table represents the fair value hierarchy for our financial assets measured at fair value on a recurring basis as of September 30, 2013 and December 31, 2012 (in thousands): | |||||||||||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||||||||||||
30-Sep-13 | |||||||||||||||||||||||||||||||||
Money market funds | $ | 9,598 | $ | — | $ | — | $ | 9,598 | |||||||||||||||||||||||||
U.S. government agency securities | — | 62,283 | — | 62,283 | |||||||||||||||||||||||||||||
U.S. treasury securities | — | 2,500 | — | 2,500 | |||||||||||||||||||||||||||||
Total | $ | 9,598 | $ | 64,783 | $ | — | $ | 74,381 | |||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||||||||||||
December 31, 2012 | |||||||||||||||||||||||||||||||||
Money market funds | $ | 3,140 | $ | — | $ | — | $ | 3,140 | |||||||||||||||||||||||||
U.S. government agency securities | — | 119,233 | — | 119,233 | |||||||||||||||||||||||||||||
U.S. treasury securities | — | 500 | — | 500 | |||||||||||||||||||||||||||||
Municipal securities | — | 715 | — | 715 | |||||||||||||||||||||||||||||
Total | $ | 3,140 | $ | 120,448 | $ | — | $ | 123,588 | |||||||||||||||||||||||||
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. Government agency securities, U.S. treasury securities and municipal 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. |
Cash_cash_equivalents_and_mark
Cash, cash equivalents and marketable securities | 9 Months Ended | ||||||||||||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||||||||||||
Cash, cash equivalents and marketable securities | ' | ||||||||||||||||||||||||||||||||
3. Cash, cash equivalents and marketable securities | |||||||||||||||||||||||||||||||||
The following is a summary of cash, cash equivalents and marketable securities available-for-sale as of September 30, 2013 and December 31, 2012 (in thousands): | |||||||||||||||||||||||||||||||||
Amortized Cost | Unrealized Gains | Unrealized Losses | Estimated Fair Value | ||||||||||||||||||||||||||||||
30-Sep-13 | |||||||||||||||||||||||||||||||||
Cash and cash equivalents: | |||||||||||||||||||||||||||||||||
Cash | $ | 2,093 | $ | — | $ | — | $ | 2,093 | |||||||||||||||||||||||||
Money market funds | 9,598 | — | — | 9,598 | |||||||||||||||||||||||||||||
U.S. government agency securities | 500 | — | — | 500 | |||||||||||||||||||||||||||||
Total cash and cash equivalents | 12,191 | — | — | 12,191 | |||||||||||||||||||||||||||||
Marketable securities available-for-sale: | |||||||||||||||||||||||||||||||||
U.S. treasury securities | 2,500 | — | — | 2,500 | |||||||||||||||||||||||||||||
U.S. government agency securities | 61,761 | 22 | — | 61,783 | |||||||||||||||||||||||||||||
Total marketable securities available-for-sale | 64,261 | 22 | — | 64,283 | |||||||||||||||||||||||||||||
Total cash, cash equivalents and marketable securities | $ | 76,452 | $ | 22 | $ | — | $ | 76,474 | |||||||||||||||||||||||||
December 31, 2012 | |||||||||||||||||||||||||||||||||
Cash and cash equivalents: | |||||||||||||||||||||||||||||||||
Cash | $ | 1,542 | $ | — | $ | — | $ | 1,542 | |||||||||||||||||||||||||
Money market funds | 3,140 | — | — | 3,140 | |||||||||||||||||||||||||||||
Municipal securities | 2,202 | — | — | 2,202 | |||||||||||||||||||||||||||||
U.S. government agency securities | 715 | — | — | 715 | |||||||||||||||||||||||||||||
Total cash and cash equivalents | 7,599 | — | — | 7,599 | |||||||||||||||||||||||||||||
Marketable securities available-for-sale: | |||||||||||||||||||||||||||||||||
U.S. government agency securities | 116,986 | 46 | (1 | ) | 117,031 | ||||||||||||||||||||||||||||
U.S. treasury securities | 500 | — | — | 500 | |||||||||||||||||||||||||||||
Total marketable securities available-for-sale | 117,486 | 46 | (1 | ) | 117,531 | ||||||||||||||||||||||||||||
Total cash, cash equivalents and marketable securities | $ | 125,085 | $ | 46 | $ | (1 | ) | $ | 125,130 | ||||||||||||||||||||||||
The following is a summary of the amortized cost and estimated fair value of marketable securities available-for-sale, by contractual maturity (in thousands): | |||||||||||||||||||||||||||||||||
September 30, 2013 | |||||||||||||||||||||||||||||||||
Amortized | Estimated Fair | ||||||||||||||||||||||||||||||||
Cost | Value | ||||||||||||||||||||||||||||||||
Mature in one year or less | $ | 55,761 | $ | 55,778 | |||||||||||||||||||||||||||||
Mature after one year through two years | 8,500 | 8,505 | |||||||||||||||||||||||||||||||
$ | 64,261 | $ | 64,283 | ||||||||||||||||||||||||||||||
We have classified our entire investment portfolio as available-for-sale. We view our available-for-sale portfolio as 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 income (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 to hold the investments 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 basis; | |||||||||||||||||||||||||||||||||
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. |
Financing_Agreements
Financing Agreements | 9 Months Ended |
Sep. 30, 2013 | |
Financing Agreements | ' |
4. Financing Agreements | |
On March 29, 2013, we entered into an At Market Issuance Sales Agreement (the “Agreement”) with MLV & Co. LLC (“MLV”) under which we may offer and sell our common stock having aggregate sales proceeds of up to $50,000,000 from time to time through MLV as our sales agent. Sales of our common stock through MLV, if any, will be made by means of ordinary brokers’ transactions on the NASDAQ Capital Market or otherwise at market prices prevailing at the time of sale, in block transactions, or as otherwise agreed upon by us and MLV. MLV will use commercially reasonable efforts to sell our common stock from time to time, based upon instructions from us (including any price, time or size limits or other customary parameters or conditions we may impose). We will pay MLV a commission of up to 3.0% of the gross sales proceeds of any common stock sold through MLV under the Agreement. No sales of our common stock have taken place under this Agreement as of September 30, 2013. |
Commitments_and_Contingencies
Commitments and Contingencies | 9 Months Ended | ||||
Sep. 30, 2013 | |||||
Commitments and Contingencies | ' | ||||
5. Commitments and Contingencies | |||||
We lease our facilities in Berkeley, California (“Berkeley Lease”) and Düsseldorf, Germany (“Düsseldorf Lease”) under operating leases that expire in June 2018 and March 2023, respectively. The Berkeley Lease provides for periods of escalating rent. The total cash payments over the life of the lease are divided by the total number of months in the lease period and the average rent is charged to expense each month during the lease period. We entered into sublease agreements under the Düsseldorf Lease for a certain portion of the leased space. The sublease income is offset against our rent expense. | |||||
During September 2013, we decided not to occupy a portion of our facility in Berkeley, California. As a result, we recorded a one-time estimated unoccupied facility expense of $0.9 million for the three and nine months ended September 30, 2013, representing the present value of the rent payments and other costs associated with the lease, net of estimated sublease income, for the remaining life of the operating lease. | |||||
Total net rent expense related to our operating leases for the three months ended September 30, 2013 and 2012, was $0.6 million and $0.4 million, respectively. Total net rent expense related to our operating leases for the nine months ended September 30, 2013 and 2012, was $1.4 million and $1.3 million, respectively. Deferred rent was $0.6 million as of both September 30, 2013 and December 31, 2012. | |||||
Future minimum payments under the non-cancelable portion of our operating leases at September 30, 2013, excluding payments from sublease agreements, are as follows (in thousands): | |||||
Years ending December 31, | |||||
2013 (remaining months) | $ | 559 | |||
2014 | 2,223 | ||||
2015 | 2,272 | ||||
2016 | 2,323 | ||||
2017 | 2,372 | ||||
Thereafter | 3,794 | ||||
Total | $ | 13,543 | |||
In addition to the non-cancelable commitments included above, we have entered into contractual arrangements that obligate us to make payments to the contractual counterparties upon the occurrence of future events. In addition, in the normal course of operations, we have entered into license and other agreements and intend to continue to seek additional rights relating to compounds or technologies in connection with our discovery, manufacturing and development programs. Under the terms of the agreements, we may be required to pay future up-front fees, milestones, royalties on net sales of products originating from the licensed technologies, if any, or other payments contingent upon the occurrence of future events that cannot reasonably be estimated. | |||||
We rely on research institutions, contract research organizations, clinical investigators as well as clinical and commercial material manufacturers of our product candidates. As of September 30, 2013, under the terms of our agreements, we are obligated to make future payments as services are provided of approximately $6.3 million through 2015. These agreements are terminable by us upon written notice. Generally, we are liable only for actual effort expended by the organizations at any point in time during the contract through the notice period. | |||||
Under the terms of our exclusive license agreements with The Regents of the University of California, as amended, for certain technology and related patent rights and materials, we pay annual license or maintenance fees and will be required to pay milestones and royalties on net sales, if any, of certain products originating from the licensed technologies. |
Collaborative_Research_and_Dev
Collaborative Research and Development Agreements | 9 Months Ended | ||||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||||
Collaborative Research and Development Agreements | ' | ||||||||||||||||||||||||
6. Collaborative Research and Development Agreements | |||||||||||||||||||||||||
GlaxoSmithKline | |||||||||||||||||||||||||
In December 2008, we entered into a worldwide strategic alliance with GSK to discover, develop and commercialize toll-like receptor (“TLR”) inhibitors. Under the terms of the arrangement, we agreed to conduct research and early clinical development in up to four programs: the Lead TLR 7/9 program, a Follow-On TLR 7/9 program, and up to two other TLR programs. In 2011 we began development of a TLR8 program as one of the two additional programs under the collaboration. | |||||||||||||||||||||||||
We are currently conducting a Phase 1 clinical trial in the Lead TLR 7/9 program with DV1179 in systemic lupus erythematosus patients. The Company is not currently performing any activities on the Follow-On TLR 7/9 program or the TLR8 program. GSK has not yet chosen to initiate development of the remaining program under the agreement. | |||||||||||||||||||||||||
GSK can exercise its exclusive option to license each program. If GSK exercises an option, GSK would carry out further development and commercialization of the corresponding products. If GSK exercises their option on the Lead TLR 7/9 program, then we are eligible to receive payments of up to approximately $125 million, comprised of contingent option exercise payments and additional payments based on GSK’s achievement of certain development, regulatory and commercial objectives. | |||||||||||||||||||||||||
We are also eligible to receive up to $60 million if aggregate worldwide annual net sales milestones are achieved and tiered royalties ranging from the mid–single digit to mid-teens on sales of any products originating from the collaboration. We have retained an option to co-develop and co-promote one product under this agreement. | |||||||||||||||||||||||||
We received an initial payment of $10 million in 2008. The deliverables under this arrangement did not have stand-alone value and so did not qualify as separate units of accounting. In 2011, we earned and recognized $12 million in substantive development milestone payments related to the initiation of Phase I and proof-of-mechanism clinical trials of DV1179 in systemic lupus erythematosus patients. In 2011, we earned and recognized $3 million in substantive development milestone payments related to the initiation of development of theTLR8 program. | |||||||||||||||||||||||||
Revenue from the initial payment from GSK was deferred and is being recognized over the expected period of performance under the agreement, which is estimated to be seven years. | |||||||||||||||||||||||||
The following table summarizes the revenues recognized under our agreement with GSK (in thousands): | |||||||||||||||||||||||||
Three months Ended | Nine months Ended | ||||||||||||||||||||||||
September 30, | September 30, | ||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||||
Initial payment | $ | 357 | $ | 357 | $ | 1,071 | $ | 1,071 | |||||||||||||||||
As of September 30, 2013 and December 31, 2012, deferred revenue relating to the initial payment was $3.2 million and $4.2 million, respectively. | |||||||||||||||||||||||||
Absent early termination, the agreement will expire when all of GSK’s payment obligations expire. Either party may terminate the agreement early upon written notice if the other party commits an uncured material breach of the agreement. Either party may terminate the agreement in the event of insolvency of the other party. GSK also has the option to terminate the agreement without cause upon prior written notice within a specified window of time dependent upon the stage of clinical development of the programs. | |||||||||||||||||||||||||
AstraZeneca | |||||||||||||||||||||||||
In September 2006, we entered into a three-year research collaboration and license agreement with AstraZeneca for the discovery and development of TLR9 agonist-based therapies for the treatment of asthma and chronic obstructive pulmonary disease. | |||||||||||||||||||||||||
In October 2011, we amended our agreement with AstraZeneca to provide that we will conduct initial clinical development of AZD 1419. Under the terms of the amended agreement, AstraZeneca will fund all program expenses to cover the cost of development activities through Phase 2a, estimated to total approximately $20 million. We received an initial payment of $3 million to begin the clinical development program. In the first quarter of 2012, we received a $2.6 million payment to advance AZD1419 into preclinical toxicology studies and these toxicology studies were completed in the third quarter of 2012. We and AstraZeneca have agreed to advance AZD 1419 towards a Phase 1 clinical trial, which resulted in a development funding payment of $6 million, received in the fourth quarter of 2012. If AstraZeneca chooses to advance the program following completion of Phase 2a, we will receive a $20 million milestone payment and AstraZeneca will retain its rights to develop the candidate therapy and to commercialize the resulting asthma product. We are eligible to receive additional milestone payments, which we have determined to be substantive milestones, of up to approximately $100 million, based on the achievement of certain development and regulatory objectives. Additionally, upon commercialization, 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. | |||||||||||||||||||||||||
Revenue from the initial payment was deferred and is being recognized over the expected period of performance under the agreement, which is approximately 50 months. Revenue from the development funding payment is being recognized as the development work is performed. | |||||||||||||||||||||||||
The following table summarizes the revenues earned under our agreement with AstraZeneca (in thousands): | |||||||||||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||||
September 30, | September 30, | ||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||||
Initial payment | $ | 180 | $ | 180 | $ | 540 | $ | 540 | |||||||||||||||||
Performance of research activities | 573 | 513 | 1,738 | 1,991 | |||||||||||||||||||||
Total | $ | 753 | $ | 693 | $ | 2,278 | $ | 2,531 | |||||||||||||||||
As of September 30, 2013 and December 31, 2012, total deferred revenue from the initial payment and development funding payments was $5.7 million and $7.7 million, respectively. | |||||||||||||||||||||||||
Absent early termination, the agreement will expire when all of AstraZeneca’s payment obligations expire. AstraZeneca has the right to terminate the agreement at any time upon prior written notice and either party may terminate the agreement early upon written notice if the other party commits an uncured material breach of the agreement. | |||||||||||||||||||||||||
National Institutes of Health (“NIH”) and Other Funding | |||||||||||||||||||||||||
We have been awarded various grants from the NIH and the NIH’s National Institute of Allergy and Infectious Disease (“NIAID”) in order to fund research. The awards are related to specific research objectives and we earn revenue as the related research expenses are incurred. We have earned revenue during the periods ended September 30, 2013 and 2012 from the following awards: | |||||||||||||||||||||||||
September 2013, NIH awarded us $0.2 million to fund research in developing TLR antagonists for therapy of hepatic fibrosis and cirrhosis. | |||||||||||||||||||||||||
June 2012, NIH awarded us $0.6 million to fund research in screening for inhibitors of TLR8 for treatment of autoimmune diseases. | |||||||||||||||||||||||||
May 2012, NIH awarded us $0.4 million to fund development of TLR8 inhibitors for treatment of rheumatoid arthritis. | |||||||||||||||||||||||||
July 2011, NIH awarded us $0.6 million to fund research in preclinical models of skin autoimmune inflammation. | |||||||||||||||||||||||||
August 2010, NIAID awarded us a grant to take a systems biology approach to study the differences between individuals who do or do not respond to vaccination against the hepatitis B virus. This study will be one of several projects conducted under a grant to the Baylor Institute of Immunology Research in Dallas as part of the Human Immune Phenotyping Centers program. We have been awarded a total of $1.4 million under this grant. | |||||||||||||||||||||||||
July 2010, NIH awarded us $0.6 million to explore the feasibility of developing a universal vaccine to prevent infection by human papilloma virus. | |||||||||||||||||||||||||
September 2008, NIAID awarded us a five-year $17 million contract to develop our ISS technology using TLR9 agonists as vaccine adjuvants. The contract supports adjuvant development for anthrax as well as other disease models. | |||||||||||||||||||||||||
The following table summarizes the revenues recognized under the various arrangements with the NIH and NIAID (in thousands): | |||||||||||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||||
September 30, | September 30, | ||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||||
NIAID contracts | $ | 1,465 | $ | 1,100 | $ | 3,125 | $ | 2,840 | |||||||||||||||||
All other NIH contracts | 235 | 119 | 730 | 348 | |||||||||||||||||||||
Total grant revenue | $ | 1,700 | $ | 1,219 | $ | 3,855 | $ | 3,188 | |||||||||||||||||
Net_Loss_Per_Share
Net Loss Per Share | 9 Months Ended |
Sep. 30, 2013 | |
Net Loss Per Share | ' |
7. Net Loss Per Share | |
Basic net loss per share is calculated by dividing the net loss by the weighted-average number of common shares outstanding during the period. Diluted net loss per share is computed by dividing the net loss by the weighted-average number of common shares outstanding during the period and dilutive potential common shares using the treasury-stock method. For purposes of this calculation, common stock subject to repurchase by us, outstanding options and warrants are considered to be dilutive potential common shares and are only included in the calculation of diluted net loss per share when their effect is dilutive. Outstanding warrants, stock options and stock awards to purchase approximately 31,100,000 and 34,400,000 shares of common stock as of September 30, 2013 and 2012, respectively, were excluded from the calculation of diluted net loss per share for the quarters ended September 30, 2013 and 2012, because the effect of their inclusion would have been anti-dilutive. |
Stockholders_Equity
Stockholders' Equity | 9 Months Ended | ||||||||||||||||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||||||||||||||||
Stockholders' Equity | ' | ||||||||||||||||||||||||||||||||||||
8. Stockholders’ Equity | |||||||||||||||||||||||||||||||||||||
On May 29, 2013, the stockholders of the Company approved an amendment to the Company’s 2011 Equity Incentive Plan to increase the aggregate number of shares of common stock authorized for issuance under the plan by 10,000,000. | |||||||||||||||||||||||||||||||||||||
Option activity under our stock-based compensation plans during the nine months ended September 30, 2013 was as follows (in thousands except per share amounts): | |||||||||||||||||||||||||||||||||||||
Shares Underlying | Weighted-Average | Weighted-Average | Aggregate | ||||||||||||||||||||||||||||||||||
Outstanding Options | Exercise Price Per Share | Remaining | Intrinsic | ||||||||||||||||||||||||||||||||||
Contractual Term | Value | ||||||||||||||||||||||||||||||||||||
(years) | |||||||||||||||||||||||||||||||||||||
Balance as of December 31, 2012 | 13,806 | $ | 3.38 | ||||||||||||||||||||||||||||||||||
Options granted | 5,542 | 2.71 | |||||||||||||||||||||||||||||||||||
Options exercised | (74 | ) | 1.41 | ||||||||||||||||||||||||||||||||||
Options cancelled: | |||||||||||||||||||||||||||||||||||||
Options forfeited (unvested) | (2,028 | ) | 3.33 | ||||||||||||||||||||||||||||||||||
Options cancelled (vested) | (381 | ) | 3.56 | ||||||||||||||||||||||||||||||||||
Balance as of September 30, 2013 | 16,865 | $ | 3.17 | 5.35 | $ | 310 | |||||||||||||||||||||||||||||||
Vested and expected to vest as of September 30, 2013 | 16,272 | $ | 3.18 | 4.97 | $ | 310 | |||||||||||||||||||||||||||||||
Exercisable as of September 30, 2013 | 10,977 | $ | 3.35 | 3.37 | $ | 307 | |||||||||||||||||||||||||||||||
Restricted stock unit activity under our stock-based compensation plans during the nine months ended September 30, 2013 was as follows (in thousands except per share amounts): | |||||||||||||||||||||||||||||||||||||
Number of | Weighted-Average | ||||||||||||||||||||||||||||||||||||
Shares | Grant-Date Fair | ||||||||||||||||||||||||||||||||||||
Value | |||||||||||||||||||||||||||||||||||||
Balance as of December 31, 2012 | 1,755 | $ | 4.23 | ||||||||||||||||||||||||||||||||||
Granted | 250 | 1.23 | |||||||||||||||||||||||||||||||||||
Vested | — | — | |||||||||||||||||||||||||||||||||||
Forfeited or expired | (230 | ) | 4.23 | ||||||||||||||||||||||||||||||||||
Balance as of September 30, 2013 | 1,775 | $ | 3.81 | ||||||||||||||||||||||||||||||||||
The aggregate intrinsic value of the restricted stock units outstanding as of September 30, 2013, based on our stock price on that date, was $2.1 million. | |||||||||||||||||||||||||||||||||||||
As of September 30, 2013, approximately 2,600,000 shares underlying stock options and restricted stock units awards with performance-based vesting criteria were outstanding. | |||||||||||||||||||||||||||||||||||||
Under our stock-based compensation plans, option awards generally vest over a four-year period contingent upon continuous service and expire ten years from the date of grant (or earlier upon termination of continuous service). The fair value-based measurement of each option is estimated on the date of grant using the Black-Scholes option valuation model. | |||||||||||||||||||||||||||||||||||||
The fair value-based measurements and weighted-average assumptions used in the calculations of these measurements are as follows: | |||||||||||||||||||||||||||||||||||||
Stock Options | Stock Options | Employee Stock | |||||||||||||||||||||||||||||||||||
Purchase Plan | |||||||||||||||||||||||||||||||||||||
Three Months Ended | Nine Months Ended | Nine Months Ended | |||||||||||||||||||||||||||||||||||
September 30, | September 30, | September 30, | |||||||||||||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||||||||||||||
Weighted-average fair value | $ | 1.15 | $ | 3.34 | $ | 2.43 | $ | 3.30 | $ | 0.93 | $ | 3.80 | |||||||||||||||||||||||||
Risk-free interest rate | 1.9 | % | 0.6 | % | 1.1 | % | 0.5 | % | 0.2 | % | 0.2 | % | |||||||||||||||||||||||||
Expected life (in years) | 5.6 | 4.0 | 5.9 | 4.0 | 1.3 | 1.0 | |||||||||||||||||||||||||||||||
Volatility | 1.5 | 1.6 | 1.4 | 1.6 | 0.8 | 1.6 | |||||||||||||||||||||||||||||||
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, giving consideration to options that have not yet completed a full life cycle. Our senior management, who hold a majority of the options outstanding, and other employees were grouped and considered separately for valuation purposes. The expected life of the options for senior management is six years and for other employees five and a half years. 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. The dividend yield is zero percent for all years and is based on our history and expectation of dividend payouts. All stock option awards to non-employees are accounted for at the fair value of the consideration received or the fair value of the equity instrument issued, as calculated using the Black-Scholes model. | |||||||||||||||||||||||||||||||||||||
Compensation expense is based on awards ultimately expected to vest and reflects estimated forfeitures. For equity awards with time-based vesting, the fair value-based measurement is amortized to expense on a straight-line basis over the vesting periods. For equity awards with performance-based vesting criteria, the fair value-based measurement is amortized to expense over the remaining vesting period commencing when the achievement of the vesting criteria becomes probable. | |||||||||||||||||||||||||||||||||||||
We recognized stock-based compensation expense of $2.8 million and $1.9 million for the three months ended September 30, 2013 and 2012, respectively. Stock-based compensation expense for the three months ended September 30, 2013 includes $1.0 million related to severance arrangements. We recognized stock-based compensation expense of $10.8 million and $6.3 million for the nine months ended September 30, 2013 and 2012, respectively. Stock-based compensation during the nine months ended September 30, 2013 included $5.1 million related to severance arrangements. The Company recorded stock-based compensation expense for awards to non-employees of $0.4 million for the nine months ended September 30, 2013. | |||||||||||||||||||||||||||||||||||||
The components of stock-based compensation expense were (in thousands): | |||||||||||||||||||||||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||||||||||||||||
September 30, | September 30, | ||||||||||||||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||||||||||||||||
Research and development | $ | 1,001 | $ | 824 | $ | 3,351 | $ | 2,565 | |||||||||||||||||||||||||||||
General and administrative | 1,844 | 1,079 | 7,496 | 3,729 | |||||||||||||||||||||||||||||||||
Total | $ | 2,845 | $ | 1,903 | $ | 10,847 | $ | 6,294 | |||||||||||||||||||||||||||||
As of September 30, 2013, the total unrecognized compensation cost related to non-vested equity awards including all awards with time-based vesting amounted to $12.1 million, which is expected to be recognized over the remaining weighted-average vesting period of 2.93 years. Additionally, as of September 30, 2013, the total unrecognized compensation cost related to equity awards with performance-based vesting criteria not deemed probable of vesting amounted to $5.0 million. | |||||||||||||||||||||||||||||||||||||
Employee Stock Purchase Plan | |||||||||||||||||||||||||||||||||||||
As of September 30, 2013, 996,000 shares have been reserved and approved for issuance under the Purchase Plan, subject to adjustment for a stock split, any future stock dividend or other similar change in our common stock or capital structure. To date, employees have acquired 828,414 shares of our common stock under the Purchase Plan including 129,690 shares during the nine months ended September 30, 2013. As of September 30, 2013, 167,586 shares of our common stock remained available for future purchases. | |||||||||||||||||||||||||||||||||||||
Warrants | |||||||||||||||||||||||||||||||||||||
As of September 30, 2013, warrants to purchase an aggregate of approximately 12,500,000 shares of our common stock were outstanding. The warrants are exercisable at a weighted average price of $1.96 per share. During the nine months ended September 30, 2013 and September 30, 2012, warrants were exercised to purchase an aggregate of approximately 84,000 and 4,700,000 shares of our common stock, respectively. |
Subsequent_Events
Subsequent Events | 9 Months Ended |
Sep. 30, 2013 | |
Subsequent Events | ' |
9. Subsequent Events | |
On October 30, 2013, we sold 79,570,000 shares of our common stock at a price of $1.075 per share and 43,430 shares of the Company’s Series B Convertible Preferred Stock (“Series B”) at a price of $1,075.00, in separate, concurrent underwritten public offerings. The sale of common stock and Series B resulted in aggregate net proceeds to us of approximately $125 million after deducting estimated commissions and offering expenses. |
Organization_and_Summary_of_Si1
Organization and Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2013 | |
Basis of Presentation | ' |
Basis of Presentation | |
Our accompanying unaudited condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information and pursuant to the instructions to Form 10-Q and Article 10 of Regulation S-X. In our opinion, these unaudited condensed consolidated financial statements include all adjustments, consisting only of normal recurring adjustments, which we consider necessary to fairly state our financial position and the results of our operations and cash flows. As permitted under those rules, certain footnotes or other financial information that are normally required by GAAP can be condensed or omitted. Interim-period results are not necessarily indicative of results of operations or cash flows for a full-year period or any other interim-period. The condensed consolidated balance sheet at December 31, 2012, has been derived from audited financial statements at that date, but excludes disclosures required by GAAP for complete financial statements. | |
The unaudited condensed consolidated financial statements and these notes should be read in conjunction with our Annual Report on Form 10-K for the year ended December 31, 2012, as filed with the Securities and Exchange Commission (the “SEC”). | |
The unaudited condensed consolidated financial statements include the accounts of Dynavax and our wholly-owned subsidiaries, Rhein Biotech GmbH (“Rhein” or “Dynavax Europe”) and Dynavax International, B.V. All significant intercompany accounts and transactions have been eliminated. We operate in one business segment, which is the discovery and development of biopharmaceutical products. | |
Liquidity and Financial Condition | ' |
Liquidity and Financial Condition | |
We have incurred significant operating losses and negative cash flows from operations since our inception. As of September 30, 2013, we had cash, cash equivalents and marketable securities of $76.5 million. We currently estimate that we have sufficient cash resources to meet our anticipated cash needs through at least the next 12 months based on cash, cash equivalents and marketable securities on hand as of September 30, 2013 and anticipated revenues and funding from existing agreements. | |
We expect to continue to spend substantial funds in connection with the development and manufacturing of our product candidates, particularly HEPLISAV, various human clinical trials for our product candidates and protection of our intellectual property. In order to continue development of our product candidates, including HEPLISAV, and depending upon the cost and timing of an additional clinical study for HEPLISAV, we may need to raise additional funds. This may occur through strategic alliance and licensing arrangements and/or future public or private financings. Sufficient additional funding may not be available on acceptable terms, or at all. Additional equity financings, if completed, could result in significant dilution or otherwise adversely affect the rights of existing shareholders. If adequate funds are not available in the future, we may need to delay, reduce the scope of or put on hold the HEPLISAV program or our other development programs while we seek strategic alternatives. | |
Use of Estimates | ' |
Use of Estimates | |
The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the unaudited condensed consolidated financial statements and accompanying notes. Actual results may differ materially from these estimates and assumptions. On an ongoing basis, we evaluate our estimates, including those related to revenue recognition, research and development activities, stock-based compensation, asset impairment, contingencies and the valuation of certain liabilities. | |
Summary of Significant Accounting Policies | ' |
Summary of Significant Accounting Policies | |
There have been no significant changes in our significant accounting policies during the nine months ended September 30, 2013, as compared with those disclosed in our Annual Report on Form 10-K for the year ended December 31, 2012. | |
Revenue Recognition | ' |
Revenue Recognition | |
Our revenues consist of amounts earned from collaborations, grants and fees from services and licenses. We enter into license and manufacturing agreements and collaborative research and development arrangements with pharmaceutical and biotechnology partners that may involve multiple deliverables. Our arrangements may include one or more of the following elements: upfront license payments, cost reimbursement for the performance of research and development activities, milestone payments, other contingent payments, contract manufacturing service fees, royalties and license fees. Each deliverable in the arrangement is evaluated to determine whether it meets the criteria to be accounted for as a separate unit of accounting or whether it should be combined with other deliverables. In order to account for the multiple-element arrangements, the Company identifies the deliverables included within the arrangement and evaluates which deliverables represent separate units 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. We recognize revenue when there is persuasive evidence that an arrangement exists, delivery has occurred or services have been rendered, the price is fixed or determinable and collectability is reasonably assured. | |
On January 1, 2011, we adopted on a prospective basis Financial Accounting Standards Board (“FASB”) Accounting Standards Update (“ASU”) 2009-13, Multiple-Deliverable Revenue Arrangements, which amends the criteria related to identifying separate units of accounting and provides guidance on whether multiple deliverables exist, how an arrangement should be separated and the consideration allocated. | |
Non-refundable upfront fees received for license and collaborative agreements entered into prior to January 1, 2011 and other payments under collaboration agreements where we have continuing performance obligations related to the payments are deferred and recognized over our expected performance period. Revenue is recognized on a ratable basis, unless we determine that another methodology is more appropriate, through the date at which our performance obligations are completed. Management makes its best estimate of the period over which we expect to fulfill our performance obligations, which may include clinical development activities. Given the uncertainties of research and development collaborations, significant judgment is required to determine the duration of the performance period. We recognize cost reimbursement revenue under collaborative agreements as the related research and development costs are incurred, as provided for under the terms of these agreements. | |
On January 1, 2011, we elected to prospectively adopt the milestone method as described in FASB ASU 2010-17, Milestone Method of Revenue Recognition. Under the milestone method, contingent consideration received from the achievement of a substantive milestone is recognized in its entirety in the period in which the milestone is achieved. A milestone is defined as an event having all of the following characteristics: (i) there is substantive uncertainty at the date the arrangement is entered into that the event will be achieved, (ii) the event can only be achieved based in whole or in part on either the entity’s performance or a specific outcome resulting from the entity’s performance and (iii) if achieved, the event would result in additional payments being due to the entity. | |
Our license and collaboration agreements with our partners provide for payments to be paid to us upon the achievement of development milestones. Given the challenges inherent in developing biologic products, there is substantial uncertainty whether any such milestones will be achieved at the time we entered into these agreements. In addition, we evaluate whether the development milestones meet the criteria to be considered substantive. The conditions include: (i) the development 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. As a result of our analysis, we consider our development milestones to be substantive and, accordingly, we expect to recognize as revenue future payments received from such milestones as we achieve each milestone. | |
Milestone payments that are contingent upon the achievement of substantive at-risk performance criteria are recognized in full upon achievement of those milestone events in accordance with the terms of the agreement and assuming all other revenue recognition criteria have been met. All revenue recognized to date under our collaborative agreements has been nonrefundable. | |
Our license and collaboration agreements with certain partners also provide for contingent payments to be paid to us based solely upon the performance of our partner. For such contingent payments we expect to recognize the payments as revenue upon receipt, provided that collection is reasonably assured and the other revenue recognition criteria have been satisfied. | |
Revenues from manufacturing services are recognized upon meeting the criteria for substantial performance and acceptance by the customer. | |
Revenue from royalty payments is contingent on future sales activities by our licensees. As a result, we recognize royalty revenue when reported by our licensees and when collection is reasonably assured. | |
Revenue from government and private agency grants are recognized as the related research expenses are incurred and to the extent that funding is approved. Additionally, we recognize revenue based on the facilities and administrative cost rate reimbursable per the terms of the grant awards. | |
Recent Accounting Pronouncements | ' |
Recent Accounting Pronouncements | |
In February 2013, the FASB issued ASU 2013-02, “Reporting of Amounts Reclassified out of Accumulated Other Comprehensive Income.” This ASU expands the presentation of changes in accumulated other comprehensive income. The new guidance requires an entity to disaggregate the total change of each component of other comprehensive income either on the face of the statement of operations or as a separate disclosure in the financial statement footnotes. ASU 2013-02 is effective for fiscal years beginning after December 15, 2012. The Company adopted this guidance in the first quarter of 2013 and the adoption did not have any impact on our financial position, results of operations or cash flows as there were no amounts reclassified out of accumulated other comprehensive income during the periods ended September 30, 2013 and 2012. |
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 9 Months Ended | ||||||||||||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||||||||||||
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 measured at fair value on a recurring basis as of September 30, 2013 and December 31, 2012 (in thousands): | |||||||||||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||||||||||||
30-Sep-13 | |||||||||||||||||||||||||||||||||
Money market funds | $ | 9,598 | $ | — | $ | — | $ | 9,598 | |||||||||||||||||||||||||
U.S. government agency securities | — | 62,283 | — | 62,283 | |||||||||||||||||||||||||||||
U.S. treasury securities | — | 2,500 | — | 2,500 | |||||||||||||||||||||||||||||
Total | $ | 9,598 | $ | 64,783 | $ | — | $ | 74,381 | |||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||||||||||||
December 31, 2012 | |||||||||||||||||||||||||||||||||
Money market funds | $ | 3,140 | $ | — | $ | — | $ | 3,140 | |||||||||||||||||||||||||
U.S. government agency securities | — | 119,233 | — | 119,233 | |||||||||||||||||||||||||||||
U.S. treasury securities | — | 500 | — | 500 | |||||||||||||||||||||||||||||
Municipal securities | — | 715 | — | 715 | |||||||||||||||||||||||||||||
Total | $ | 3,140 | $ | 120,448 | $ | — | $ | 123,588 | |||||||||||||||||||||||||
Cash_cash_equivalents_and_mark1
Cash, cash equivalents and marketable securities (Tables) | 9 Months Ended | ||||||||||||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||||||||||||
Summary of Cash, Cash Equivalents and Marketable Securities Available-for-sale | ' | ||||||||||||||||||||||||||||||||
The following is a summary of cash, cash equivalents and marketable securities available-for-sale as of September 30, 2013 and December 31, 2012 (in thousands): | |||||||||||||||||||||||||||||||||
Amortized Cost | Unrealized Gains | Unrealized Losses | Estimated Fair Value | ||||||||||||||||||||||||||||||
30-Sep-13 | |||||||||||||||||||||||||||||||||
Cash and cash equivalents: | |||||||||||||||||||||||||||||||||
Cash | $ | 2,093 | $ | — | $ | — | $ | 2,093 | |||||||||||||||||||||||||
Money market funds | 9,598 | — | — | 9,598 | |||||||||||||||||||||||||||||
U.S. government agency securities | 500 | — | — | 500 | |||||||||||||||||||||||||||||
Total cash and cash equivalents | 12,191 | — | — | 12,191 | |||||||||||||||||||||||||||||
Marketable securities available-for-sale: | |||||||||||||||||||||||||||||||||
U.S. treasury securities | 2,500 | — | — | 2,500 | |||||||||||||||||||||||||||||
U.S. government agency securities | 61,761 | 22 | — | 61,783 | |||||||||||||||||||||||||||||
Total marketable securities available-for-sale | 64,261 | 22 | — | 64,283 | |||||||||||||||||||||||||||||
Total cash, cash equivalents and marketable securities | $ | 76,452 | $ | 22 | $ | — | $ | 76,474 | |||||||||||||||||||||||||
December 31, 2012 | |||||||||||||||||||||||||||||||||
Cash and cash equivalents: | |||||||||||||||||||||||||||||||||
Cash | $ | 1,542 | $ | — | $ | — | $ | 1,542 | |||||||||||||||||||||||||
Money market funds | 3,140 | — | — | 3,140 | |||||||||||||||||||||||||||||
Municipal securities | 2,202 | — | — | 2,202 | |||||||||||||||||||||||||||||
U.S. government agency securities | 715 | — | — | 715 | |||||||||||||||||||||||||||||
Total cash and cash equivalents | 7,599 | — | — | 7,599 | |||||||||||||||||||||||||||||
Marketable securities available-for-sale: | |||||||||||||||||||||||||||||||||
U.S. government agency securities | 116,986 | 46 | (1 | ) | 117,031 | ||||||||||||||||||||||||||||
U.S. treasury securities | 500 | — | — | 500 | |||||||||||||||||||||||||||||
Total marketable securities available-for-sale | 117,486 | 46 | (1 | ) | 117,531 | ||||||||||||||||||||||||||||
Total cash, cash equivalents and marketable securities | $ | 125,085 | $ | 46 | $ | (1 | ) | $ | 125,130 | ||||||||||||||||||||||||
Summary of Amortized Cost and Estimated Fair Value of Marketable Securities Available-for-sale | ' | ||||||||||||||||||||||||||||||||
The following is a summary of the amortized cost and estimated fair value of marketable securities available-for-sale, by contractual maturity (in thousands): | |||||||||||||||||||||||||||||||||
September 30, 2013 | |||||||||||||||||||||||||||||||||
Amortized | Estimated Fair | ||||||||||||||||||||||||||||||||
Cost | Value | ||||||||||||||||||||||||||||||||
Mature in one year or less | $ | 55,761 | $ | 55,778 | |||||||||||||||||||||||||||||
Mature after one year through two years | 8,500 | 8,505 | |||||||||||||||||||||||||||||||
$ | 64,261 | $ | 64,283 | ||||||||||||||||||||||||||||||
Commitments_and_Contingencies_
Commitments and Contingencies (Tables) | 9 Months Ended | ||||
Sep. 30, 2013 | |||||
Future Minimum Payments Under Non-Cancelable Portion of Operating Leases | ' | ||||
Future minimum payments under the non-cancelable portion of our operating leases at September 30, 2013, excluding payments from sublease agreements, are as follows (in thousands): | |||||
Years ending December 31, | |||||
2013 (remaining months) | $ | 559 | |||
2014 | 2,223 | ||||
2015 | 2,272 | ||||
2016 | 2,323 | ||||
2017 | 2,372 | ||||
Thereafter | 3,794 | ||||
Total | $ | 13,543 | |||
Collaborative_Research_and_Dev1
Collaborative Research and Development Agreements (Tables) | 9 Months Ended | ||||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||||
Agreement With Gsk | ' | ||||||||||||||||||||||||
Summary of Revenues Recognized by Major Customer | ' | ||||||||||||||||||||||||
The following table summarizes the revenues recognized under our agreement with GSK (in thousands): | |||||||||||||||||||||||||
Three months Ended | Nine months Ended | ||||||||||||||||||||||||
September 30, | September 30, | ||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||||
Initial payment | $ | 357 | $ | 357 | $ | 1,071 | $ | 1,071 | |||||||||||||||||
Astra Zeneca | ' | ||||||||||||||||||||||||
Summary of Revenues Recognized by Major Customer | ' | ||||||||||||||||||||||||
The following table summarizes the revenues earned under our agreement with AstraZeneca (in thousands): | |||||||||||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||||
September 30, | September 30, | ||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||||
Initial payment | $ | 180 | $ | 180 | $ | 540 | $ | 540 | |||||||||||||||||
Performance of research activities | 573 | 513 | 1,738 | 1,991 | |||||||||||||||||||||
Total | $ | 753 | $ | 693 | $ | 2,278 | $ | 2,531 | |||||||||||||||||
National Institutes of Health | ' | ||||||||||||||||||||||||
Summary of Revenues Recognized by Major Customer | ' | ||||||||||||||||||||||||
The following table summarizes the revenues recognized under the various arrangements with the NIH and NIAID (in thousands): | |||||||||||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||||
September 30, | September 30, | ||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||||
NIAID contracts | $ | 1,465 | $ | 1,100 | $ | 3,125 | $ | 2,840 | |||||||||||||||||
All other NIH contracts | 235 | 119 | 730 | 348 | |||||||||||||||||||||
Total grant revenue | $ | 1,700 | $ | 1,219 | $ | 3,855 | $ | 3,188 | |||||||||||||||||
Stockholders_Equity_Tables
Stockholders' Equity (Tables) | 9 Months Ended | ||||||||||||||||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||||||||||||||||
Option Activity under Stock-Based Compensation Plans | ' | ||||||||||||||||||||||||||||||||||||
Option activity under our stock-based compensation plans during the nine months ended September 30, 2013 was as follows (in thousands except per share amounts): | |||||||||||||||||||||||||||||||||||||
Shares Underlying | Weighted-Average | Weighted-Average | Aggregate | ||||||||||||||||||||||||||||||||||
Outstanding Options | Exercise Price Per Share | Remaining | Intrinsic | ||||||||||||||||||||||||||||||||||
Contractual Term | Value | ||||||||||||||||||||||||||||||||||||
(years) | |||||||||||||||||||||||||||||||||||||
Balance as of December 31, 2012 | 13,806 | $ | 3.38 | ||||||||||||||||||||||||||||||||||
Options granted | 5,542 | 2.71 | |||||||||||||||||||||||||||||||||||
Options exercised | (74 | ) | 1.41 | ||||||||||||||||||||||||||||||||||
Options cancelled: | |||||||||||||||||||||||||||||||||||||
Options forfeited (unvested) | (2,028 | ) | 3.33 | ||||||||||||||||||||||||||||||||||
Options cancelled (vested) | (381 | ) | 3.56 | ||||||||||||||||||||||||||||||||||
Balance as of September 30, 2013 | 16,865 | $ | 3.17 | 5.35 | $ | 310 | |||||||||||||||||||||||||||||||
Vested and expected to vest as of September 30, 2013 | 16,272 | $ | 3.18 | 4.97 | $ | 310 | |||||||||||||||||||||||||||||||
Exercisable as of September 30, 2013 | 10,977 | $ | 3.35 | 3.37 | $ | 307 | |||||||||||||||||||||||||||||||
Summary of Restricted Stock Units Activity | ' | ||||||||||||||||||||||||||||||||||||
Restricted stock unit activity under our stock-based compensation plans during the nine months ended September 30, 2013 was as follows (in thousands except per share amounts): | |||||||||||||||||||||||||||||||||||||
Number of | Weighted-Average | ||||||||||||||||||||||||||||||||||||
Shares | Grant-Date Fair | ||||||||||||||||||||||||||||||||||||
Value | |||||||||||||||||||||||||||||||||||||
Balance as of December 31, 2012 | 1,755 | $ | 4.23 | ||||||||||||||||||||||||||||||||||
Granted | 250 | 1.23 | |||||||||||||||||||||||||||||||||||
Vested | — | — | |||||||||||||||||||||||||||||||||||
Forfeited or expired | (230 | ) | 4.23 | ||||||||||||||||||||||||||||||||||
Balance as of September 30, 2013 | 1,775 | $ | 3.81 | ||||||||||||||||||||||||||||||||||
Fair Value-Based Measurements and Weighted-Average Assumptions | ' | ||||||||||||||||||||||||||||||||||||
The fair value-based measurements and weighted-average assumptions used in the calculations of these measurements are as follows: | |||||||||||||||||||||||||||||||||||||
Stock Options | Stock Options | Employee Stock | |||||||||||||||||||||||||||||||||||
Purchase Plan | |||||||||||||||||||||||||||||||||||||
Three Months Ended | Nine Months Ended | Nine Months Ended | |||||||||||||||||||||||||||||||||||
September 30, | September 30, | September 30, | |||||||||||||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||||||||||||||
Weighted-average fair value | $ | 1.15 | $ | 3.34 | $ | 2.43 | $ | 3.30 | $ | 0.93 | $ | 3.80 | |||||||||||||||||||||||||
Risk-free interest rate | 1.9 | % | 0.6 | % | 1.1 | % | 0.5 | % | 0.2 | % | 0.2 | % | |||||||||||||||||||||||||
Expected life (in years) | 5.6 | 4.0 | 5.9 | 4.0 | 1.3 | 1.0 | |||||||||||||||||||||||||||||||
Volatility | 1.5 | 1.6 | 1.4 | 1.6 | 0.8 | 1.6 | |||||||||||||||||||||||||||||||
Stock-Based Compensation Expense | ' | ||||||||||||||||||||||||||||||||||||
The components of stock-based compensation expense were (in thousands): | |||||||||||||||||||||||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||||||||||||||||
September 30, | September 30, | ||||||||||||||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||||||||||||||||
Research and development | $ | 1,001 | $ | 824 | $ | 3,351 | $ | 2,565 | |||||||||||||||||||||||||||||
General and administrative | 1,844 | 1,079 | 7,496 | 3,729 | |||||||||||||||||||||||||||||||||
Total | $ | 2,845 | $ | 1,903 | $ | 10,847 | $ | 6,294 | |||||||||||||||||||||||||||||
Organization_and_Summary_of_Si2
Organization and Summary of Significant Accounting Policies - Additional Information (Detail) (USD $) | 9 Months Ended | |
Sep. 30, 2013 | Sep. 30, 2012 | |
Product Information [Line Items] | ' | ' |
Cash, cash equivalents and marketable securities | $76,500,000 | ' |
Amount reclassified out of accumulated other comprehensive income | $0 | $0 |
Fair_Value_Hierarchy_for_Finan
Fair Value Hierarchy for Financial Assets and Liabilities Measured at Fair Value on Recurring Basis (Detail) (Fair Value, Measurements, Recurring, USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ' | ' |
Assets | $74,381 | $123,588 |
Money market funds | ' | ' |
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ' | ' |
Assets | 9,598 | 3,140 |
US Government Agencies Debt Securities | ' | ' |
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ' | ' |
Assets | 62,283 | 119,233 |
US Treasury Securities | ' | ' |
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ' | ' |
Assets | 2,500 | 500 |
Municipal Securities | ' | ' |
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ' | ' |
Assets | ' | 715 |
Fair Value, Inputs, Level 1 | ' | ' |
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ' | ' |
Assets | 9,598 | 3,140 |
Fair Value, Inputs, Level 1 | Money market funds | ' | ' |
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ' | ' |
Assets | 9,598 | 3,140 |
Fair Value, Inputs, Level 2 | ' | ' |
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ' | ' |
Assets | 64,783 | 120,448 |
Fair Value, Inputs, Level 2 | US Government Agencies Debt Securities | ' | ' |
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ' | ' |
Assets | 62,283 | 119,233 |
Fair Value, Inputs, Level 2 | US Treasury Securities | ' | ' |
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ' | ' |
Assets | 2,500 | 500 |
Fair Value, Inputs, Level 2 | Municipal Securities | ' | ' |
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ' | ' |
Assets | ' | $715 |
Summary_of_Cash_Cash_Equivalen
Summary of Cash, Cash Equivalents and Marketable Securities Available-for-sale (Detail) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Cash Cash Equivalents And Marketable Securities [Line Items] | ' | ' |
Amortized Cost | $76,452 | $125,085 |
Unrealized Gains | 22 | 46 |
Unrealized Losses | ' | -1 |
Estimated Fair Value | 76,474 | 125,130 |
Cash and Cash Equivalents | ' | ' |
Cash Cash Equivalents And Marketable Securities [Line Items] | ' | ' |
Amortized Cost | 12,191 | 7,599 |
Estimated Fair Value | 12,191 | 7,599 |
Cash and Cash Equivalents | Cash | ' | ' |
Cash Cash Equivalents And Marketable Securities [Line Items] | ' | ' |
Amortized Cost | 2,093 | 1,542 |
Estimated Fair Value | 2,093 | 1,542 |
Cash and Cash Equivalents | Money market funds | ' | ' |
Cash Cash Equivalents And Marketable Securities [Line Items] | ' | ' |
Amortized Cost | 9,598 | 3,140 |
Estimated Fair Value | 9,598 | 3,140 |
Cash and Cash Equivalents | Municipal Securities | ' | ' |
Cash Cash Equivalents And Marketable Securities [Line Items] | ' | ' |
Amortized Cost | ' | 2,202 |
Estimated Fair Value | ' | 2,202 |
Cash and Cash Equivalents | US Government Agencies Debt Securities | ' | ' |
Cash Cash Equivalents And Marketable Securities [Line Items] | ' | ' |
Amortized Cost | 500 | 715 |
Estimated Fair Value | 500 | 715 |
Available-for-sale Securities | ' | ' |
Cash Cash Equivalents And Marketable Securities [Line Items] | ' | ' |
Amortized Cost | 64,261 | 117,486 |
Unrealized Gains | 22 | 46 |
Unrealized Losses | ' | -1 |
Estimated Fair Value | 64,283 | 117,531 |
Available-for-sale Securities | US Government Agencies Debt Securities | ' | ' |
Cash Cash Equivalents And Marketable Securities [Line Items] | ' | ' |
Amortized Cost | 61,761 | 116,986 |
Unrealized Gains | 22 | 46 |
Unrealized Losses | ' | -1 |
Estimated Fair Value | 61,783 | 117,031 |
Available-for-sale Securities | US Treasury Securities | ' | ' |
Cash Cash Equivalents And Marketable Securities [Line Items] | ' | ' |
Amortized Cost | 2,500 | 500 |
Estimated Fair Value | $2,500 | $500 |
Summary_of_Amortized_Cost_and_
Summary of Amortized Cost and Estimated Fair Value of Marketable Securities Available-for-sale (Detail) (USD $) | Sep. 30, 2013 |
In Thousands, unless otherwise specified | |
Amortized Cost | ' |
Mature in one year or less | $55,761 |
Mature after one year through two years | 8,500 |
Total amortized cost | 64,261 |
Estimated Fair Value | ' |
Mature in one year or less | 55,778 |
Mature after one year through two years | 8,505 |
Total estimated fair value | $64,283 |
Financing_Agreements_Additiona
Financing Agreements - Additional Information (Detail) (MLV, Maximum, USD $) | 1 Months Ended |
Mar. 29, 2013 | |
MLV | Maximum | ' |
Subsidiary Sale Of Stock [Line Items] | ' |
Common stock aggregate offering price | $50,000,000 |
Commission on gross sales proceeds of common stock | 3.00% |
Future_Minimum_Payments_under_
Future Minimum Payments under Non-Cancelable Portion of Operating Leases (Detail) (USD $) | Sep. 30, 2013 |
In Thousands, unless otherwise specified | |
Operating Leased Assets [Line Items] | ' |
2013 (remaining months) | $559 |
2014 | 2,223 |
2015 | 2,272 |
2016 | 2,323 |
2017 | 2,372 |
Thereafter | 3,794 |
Total | $13,543 |
Commitments_and_Contingencies_1
Commitments and Contingencies - Additional Information (Detail) (USD $) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | |
Loss Contingencies [Line Items] | ' | ' | ' | ' | ' |
Rent expense, net | $600,000 | $400,000 | $1,400,000 | $1,300,000 | ' |
Deferred rent | 600,000 | ' | 600,000 | ' | 600,000 |
Future payments obligation | ' | ' | 6,300,000 | ' | ' |
Unoccupied facility expense | $918,000 | ' | $918,000 | ' | ' |
CALIFORNIA | ' | ' | ' | ' | ' |
Loss Contingencies [Line Items] | ' | ' | ' | ' | ' |
Operating leases expiration date | ' | ' | '2018-06 | ' | ' |
Dusseldorf, Germany (the "Dusseldorf Lease") | ' | ' | ' | ' | ' |
Loss Contingencies [Line Items] | ' | ' | ' | ' | ' |
Operating leases expiration date | ' | ' | '2023-03 | ' | ' |
Collaborative_Research_Develop
Collaborative Research, Development, and License Agreements - Additional Information (Detail) (USD $) | 1 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | 12 Months Ended | 1 Months Ended | 3 Months Ended | 9 Months Ended | 1 Months Ended | 12 Months Ended | 3 Months Ended | 9 Months Ended | 1 Months Ended | ||||||||||||||||
Dec. 31, 2008 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2011 | Dec. 31, 2012 | Dec. 31, 2011 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2006 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | Oct. 31, 2011 | Dec. 31, 2011 | Dec. 31, 2012 | Mar. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Jun. 30, 2012 | 31-May-12 | Jul. 31, 2011 | Aug. 31, 2010 | Jul. 31, 2010 | Sep. 30, 2008 | Sep. 30, 2013 | |
Glaxo, Smith, Kline | Glaxo, Smith, Kline | Glaxo, Smith, Kline | Glaxo, Smith, Kline | Glaxo, Smith, Kline | Glaxo, Smith, Kline | Glaxo, Smith, Kline | Glaxo, Smith, Kline | Glaxo, Smith, Kline | Glaxo, Smith, Kline | Astra Zeneca | Astra Zeneca | Astra Zeneca | Astra Zeneca | Astra Zeneca | Astra Zeneca | Amendment | Amendment | Amendment | Amendment | Amendment | Amendment | Autoimmune Disease | Rheumatoid Arthritis | Skin Autoimmune Inflammation | HBV | HPV | ISS Technology | Hepatic Fibrosis and Cirrhosis | |
Project | Expansion | Maximum | Maximum | Advance the program following completion of Phase 2a | Advance the program following completion of Phase 2a | Advance the program following completion of Phase 2a | Maximum | National Institutes of Health | National Institutes of Health | National Institutes of Health | National Institutes of Health | National Institutes of Health | National Institutes of Health | National Institutes of Health | |||||||||||||||
Annual net sales milestones achieved | Advance the program following completion of Phase 2a | ||||||||||||||||||||||||||||
Product Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of programs for research and early clinical development | 4 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Potential milestone payment | ' | ' | ' | ' | ' | ' | ' | ' | $125,000,000 | $60,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Collaboration Revenue | 10,000,000 | 357,000 | 357,000 | 1,071,000 | 1,071,000 | ' | ' | ' | ' | ' | ' | 180,000 | 180,000 | 540,000 | 540,000 | ' | 3,000,000 | ' | 6,000,000 | 2,600,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenue from milestone payment | ' | ' | ' | ' | ' | 12,000,000 | ' | 3,000,000 | ' | ' | ' | 573,000 | 513,000 | 1,738,000 | 1,991,000 | ' | ' | ' | ' | ' | 20,000,000 | 100,000,000 | ' | ' | ' | ' | ' | ' | ' |
Deferred revenue recognition period | ' | '7 years | ' | '7 years | ' | ' | ' | ' | ' | ' | ' | '50 months | ' | '50 months | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Deferred revenue | ' | 3,200,000 | ' | 3,200,000 | ' | ' | 4,200,000 | ' | ' | ' | ' | 5,700,000 | ' | 5,700,000 | ' | 7,700,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Research collaboration and license agreement period | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '3 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cost of clinical development activities | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 20,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Grants receivable | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 600,000 | 400,000 | 600,000 | 1,400,000 | 600,000 | ' | 200,000 |
Contract agreement period | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '5 years | ' |
Contract awarded to develop technology | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $17,000,000 | ' |
Summary_of_Revenue_Recognized_
Summary of Revenue Recognized under Agreement with GSK (Detail) (USD $) | 1 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2008 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2011 |
Product Information [Line Items] | ' | ' | ' | ' | ' | ' |
Total | ' | $2,927 | $2,874 | $8,404 | $7,908 | ' |
Grant revenue | ' | 1,700 | 1,219 | 3,855 | 3,188 | ' |
National Institutes of Health | ' | ' | ' | ' | ' | ' |
Product Information [Line Items] | ' | ' | ' | ' | ' | ' |
Grant revenue | ' | 235 | 119 | 730 | 348 | ' |
Glaxo, Smith, Kline | ' | ' | ' | ' | ' | ' |
Product Information [Line Items] | ' | ' | ' | ' | ' | ' |
Initial payment | 10,000 | 357 | 357 | 1,071 | 1,071 | ' |
Performance of research activities | ' | ' | ' | ' | ' | 12,000 |
Astra Zeneca | ' | ' | ' | ' | ' | ' |
Product Information [Line Items] | ' | ' | ' | ' | ' | ' |
Initial payment | ' | 180 | 180 | 540 | 540 | ' |
Performance of research activities | ' | 573 | 513 | 1,738 | 1,991 | ' |
Total | ' | 753 | 693 | 2,278 | 2,531 | ' |
National Institute Of Allergy And Infectious Diseases | ' | ' | ' | ' | ' | ' |
Product Information [Line Items] | ' | ' | ' | ' | ' | ' |
Grant revenue | ' | $1,465 | $1,100 | $3,125 | $2,840 | ' |
Net_Loss_Per_Share_Additional_
Net Loss Per Share - Additional Information (Detail) | 3 Months Ended | |
Sep. 30, 2013 | Sep. 30, 2012 | |
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ' | ' |
Outstanding warrants and equity awards were not included in diluted net loss per share calculation | 31,100,000 | 34,400,000 |
Option_Activity_under_Stock_Pl
Option Activity under Stock Plans (Detail) (USD $) | 9 Months Ended |
In Thousands, except Per Share data, unless otherwise specified | Sep. 30, 2013 |
Number of Options Outstanding | ' |
Beginning balance | 13,806 |
Options granted | 5,542 |
Options exercised | -74 |
Ending balance | 16,865 |
Vested and expected to vest at end of period | 16,272 |
Exercisable at end of period | 10,977 |
Weighted-Average Price Per Share | ' |
Beginning balance | $3.38 |
Options granted | $2.71 |
Options exercised | $1.41 |
Ending balance | $3.17 |
Vested and expected to vest at end of period | $3.18 |
Exercisable at end of period | $3.35 |
Weighted Average Remaining Contractual Life (In years) | ' |
Balance as of September 30, 2013 | '5 years 4 months 6 days |
Outstanding options vested and expected to vest at end of period | '4 years 11 months 19 days |
Options exercisable at end of period | '3 years 4 months 13 days |
Aggregate Intrinsic Value | ' |
Balance as of September 30, 2013 | $310 |
Outstanding options (vested and expected to vest) at end of period | 310 |
Options exercisable at end of period | $307 |
Unvested | ' |
Number of Options Outstanding | ' |
Options cancelled | -2,028 |
Weighted-Average Price Per Share | ' |
Options cancelled | $3.33 |
Vested | ' |
Number of Options Outstanding | ' |
Options cancelled | -381 |
Weighted-Average Price Per Share | ' |
Options cancelled | $3.56 |
Summary_of_Restricted_Stock_Un
Summary of Restricted Stock Units Activity (Detail) (Restricted Stock Units (RSUs), USD $) | 9 Months Ended |
In Thousands, except Per Share data, unless otherwise specified | Sep. 30, 2013 |
Restricted Stock Units (RSUs) | ' |
Number of shares | ' |
Beginning Balance | 1,755 |
Granted | 250 |
Vested | ' |
Forfeited or expired | -230 |
Ending Balance | 1,775 |
Weighted Average Grant Date Fair Value | ' |
Beginning Balance | $4.23 |
Granted | $1.23 |
Vested | ' |
Forfeited or expired | $4.23 |
Ending Balance | $3.81 |
Fair_ValueBased_Measurements_a
Fair Value-Based Measurements and Weighted-Average Assumptions (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
Stock Options | ' | ' | ' | ' |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ' | ' | ' | ' |
Weighted-average fair value | $1.15 | $3.34 | $2.43 | $3.30 |
Risk-free interest rate | 1.90% | 0.60% | 1.10% | 0.50% |
Expected life (in years) | '5 years 7 months 6 days | '4 years | '5 years 10 months 24 days | '4 years |
Volatility | 1.50% | 1.60% | 1.40% | 1.60% |
Employee Stock Purchase Plan | ' | ' | ' | ' |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ' | ' | ' | ' |
Weighted-average fair value | ' | ' | $0.93 | $3.80 |
Risk-free interest rate | ' | ' | 0.20% | 0.20% |
Expected life (in years) | ' | ' | '1 year 3 months 18 days | '1 year |
Volatility | ' | ' | 0.80% | 1.60% |
StockBased_Compensation_Expens
Stock-Based Compensation Expense (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Deferred Compensation Arrangement With Individual Share Based Payments [Line Items] | ' | ' | ' | ' |
Share Based Compensation | $2,845 | $1,903 | $10,847 | $6,294 |
Research and Development Expense | ' | ' | ' | ' |
Deferred Compensation Arrangement With Individual Share Based Payments [Line Items] | ' | ' | ' | ' |
Share Based Compensation | 1,001 | 824 | 3,351 | 2,565 |
General and Administrative Expense | ' | ' | ' | ' |
Deferred Compensation Arrangement With Individual Share Based Payments [Line Items] | ' | ' | ' | ' |
Share Based Compensation | $1,844 | $1,079 | $7,496 | $3,729 |
Stockholders_Equity_Additional
Stockholders' Equity - Additional Information (Detail) (USD $) | 3 Months Ended | 9 Months Ended | 1 Months Ended | 9 Months Ended | |||||||||||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | 29-May-13 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | |
Warrants | Warrants | Senior Management Group | All Other Employees | Restricted Stock Units (RSUs) | Performance based Vesting Condition | 2011 Plan | Non Employee Awards | Time Based Vesting Schedule | Employee Stock Purchase Plan | Employee Stock Purchase Plan | |||||
Current Period One | |||||||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Increase in the aggregate number of shares of common stock authorized for issuance | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 10,000,000 | ' | ' | ' | ' |
Aggregate intrinsic value | ' | ' | ' | ' | ' | ' | ' | ' | $2,100,000 | ' | ' | ' | ' | ' | ' |
Shares underlying stock options and restricted stock units awards with performance-based vesting criteria | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,600,000 | ' | ' | ' | ' | ' |
Expiration period | ' | ' | '10 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Options vesting period | ' | ' | '4 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Expected Dividend yield | ' | ' | 0.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Expected Life (in year) | ' | ' | ' | ' | ' | ' | '6 years | '5 years 6 months | ' | ' | ' | ' | ' | ' | ' |
Recognized stock-based compensation expense | 1,000,000 | ' | 5,100,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock-based compensation expense | 2,845,000 | 1,903,000 | 10,847,000 | 6,294,000 | ' | ' | ' | ' | ' | ' | ' | 400,000 | ' | ' | ' |
Total unrecognized compensation cost related to non-vested equity awards | $5,000,000 | ' | $5,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | $12,100,000 | ' | ' |
Total unrecognized compensation cost, weighted-average vesting period | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '2 years 11 months 5 days | ' | ' |
Shares reserved and approved for issuance | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 996,000 | ' |
Shares issued to employees | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 828,414 | 129,690 |
Shares remaining available for future purchases | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 167,586 | ' |
Warrants to purchase common stock | ' | ' | ' | ' | 12,500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Warrants exercised | ' | ' | ' | ' | 84,000 | 4,700,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Warrants exercisable per share | ' | ' | ' | ' | $1.96 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Subsequent_Events_Additional_I
Subsequent Events - Additional Information (Detail) (Subsequent Event, USD $) | 1 Months Ended |
In Millions, except Share data, unless otherwise specified | Oct. 30, 2013 |
Subsequent Event [Line Items] | ' |
Sale of stock, shares | 79,570,000 |
Public offering net price per share | $1.07 |
Net proceeds from offering | $125 |
Series B Convertible Preferred Stock | ' |
Subsequent Event [Line Items] | ' |
Sale of stock, shares | 43,430 |
Public offering net price per share | $1,075 |