Dynavax Technologies (DVAX) 10-Q 5 May 14 2014 Q1 Quarterly report Financial data

Document_and_Entity_Informatio

Document and Entity Information	3 Months Ended
	Mar. 31, 2014	Apr. 30, 2014
Document Information [Line Items]	'	'
Document Type	'10-Q	'
Amendment Flag	'false	'
Document Period End Date	31-Mar-14	'
Document Fiscal Year Focus	'2014	'
Document Fiscal Period Focus	'Q1	'
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	'	262,855,958

Condensed_Consolidated_Balance

Condensed Consolidated Balance Sheets (USD $)	Mar. 31, 2014	Dec. 31, 2013
In Thousands, unless otherwise specified
Current assets:	'	'
Cash and cash equivalents	$26,750	$23,122
Marketable securities available-for-sale	150,929	166,254
Accounts receivable	1,730	1,627
Prepaid expenses and other current assets	2,323	1,375
Total current assets	181,732	192,378
Property and equipment, net	8,584	8,706
Goodwill	2,576	2,579
Restricted cash	662	662
Other assets	31	297
Total assets	193,585	204,622
Current liabilities:	'	'
Accounts payable	1,863	1,901
Accrued liabilities	6,608	8,166
Deferred revenues	7,511	6,125
Total current liabilities	15,982	16,192
Deferred revenues, net of current portion	2,823	1,173
Other long-term liabilities	927	963
Total liabilities	19,732	18,328
Commitments and contingencies (Note 4)	'	'
Stockholders’ equity:	'	'
Preferred stock	'	'
Common stock: $0.001 par value Authorized: 350,000 shares Issued and outstanding: 262,856 shares at March 31, 2014 and 262,796 shares at December 31, 2013	263	263
Additional paid-in capital	689,729	688,390
Total accumulated other comprehensive loss	-88	-148
Accumulated deficit	-516,051	-502,211
Total stockholders’ equity	173,853	186,294
Total liabilities and stockholders’ equity	193,585	204,622
Series B Convertible Preferred Stock	'	'
Stockholders’ equity:	'	'
Preferred stock	'	'

Condensed_Consolidated_Balance1

Condensed Consolidated Balance Sheets (Parenthetical) (USD $)	Mar. 31, 2014	Dec. 31, 2013
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	350,000
Common stock, shares issued	262,856	262,796
Common stock, shares outstanding	262,856	262,796
Series B Convertible Preferred Stock	'	'
Preferred stock, par value	$0.00	$0.00
Preferred stock, shares authorized	43	43
Preferred stock, shares issued	43	43
Preferred stock, shares outstanding	43	43

Condensed_Consolidated_Stateme

Condensed Consolidated Statements of Operations (USD $)	3 Months Ended
In Thousands, except Per Share data, unless otherwise specified	Mar. 31, 2014	Mar. 31, 2013
Revenues:	'	'
Collaboration revenue	$2,373	$883
Grant revenue	1,125	760
Service and license revenue	'	442
Total revenues	3,498	2,085
Operating expenses:	'	'
Research and development	13,231	14,164
General and administrative	4,157	8,800
Unoccupied facility expense	77	'
Total operating expenses	17,465	22,964
Loss from operations	-13,967	-20,879
Other income (expense):	'	'
Interest income	65	72
Interest expense	'	-32
Other income	62	14
Net loss	($13,840)	($20,825)
Basic and diluted net loss per share	($0.05)	($0.11)
Weighted average number of shares used to compute basic and diluted net loss per share	262,826	182,847

Condensed_Consolidated_Stateme1

Condensed Consolidated Statements of Comprehensive Loss (USD $)	3 Months Ended
In Thousands, unless otherwise specified	Mar. 31, 2014	Mar. 31, 2013
Net loss	($13,840)	($20,825)
Other comprehensive income (loss):	'	'
Unrealized gain (loss) on marketable securities available-for-sale	69	-8
Cumulative foreign currency translation adjustment	-9	-347
Total other comprehensive gain (loss)	60	-355
Total comprehensive loss	($13,780)	($21,180)

Condensed_Consolidated_Stateme2

Condensed Consolidated Statements of Cash Flows (USD $)	3 Months Ended
In Thousands, unless otherwise specified	Mar. 31, 2014	Mar. 31, 2013
Operating activities	'	'
Net loss	($13,840)	($20,825)
Adjustments to reconcile net loss to net cash used in operating activities:	'	'
Depreciation and amortization	339	319
Gain on disposal of property and equipment	-20	'
Accretion of discounts and amortization of premiums of marketable securities	264	280
Unoccupied facility expense	77	'
Stock-based compensation expense	1,270	4,266
Changes in operating assets and liabilities:	'	'
Accounts receivable	-103	-542
Prepaid expenses and other current assets	-948	835
Restricted cash and other assets	266	13
Accounts payable	154	-439
Accrued liabilities and other long term liabilities	-1,671	-1,905
Deferred revenues	3,036	-888
Net cash used in operating activities	-11,176	-18,886
Investing activities	'	'
Purchases of marketable securities	-13,819	-13,454
Proceeds from maturities of marketable securities	28,949	50,340
Purchases of property and equipment, net of proceeds from asset disposals	-398	-535
Net cash provided by investing activities	14,732	36,351
Financing activities	'	'
Proceeds from issuances of common stock and warrants, net of issuance costs	'	-142
Proceeds from exercise of stock options and restricted stock awards	'	10
Proceeds from employee stock purchase plan	69	147
Net cash provided by financing activities	69	15
Effect of exchange rate changes on cash and cash equivalents	3	-63
Net increase in cash and cash equivalents	3,628	17,417
Cash and cash equivalents at beginning of period	23,122	7,599
Cash and cash equivalents at end of period	26,750	25,016
Non-cash investing and financing activities:	'	'
Disposal of fully depreciated property and equipment	274	1
Net change in unrealized gain (loss) on marketable securities	$69	($8)

Organization_and_Summary_of_Si

Organization and Summary of Significant Accounting Policies	3 Months Ended
	Mar. 31, 2014
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, develops products to prevent and treat infectious and inflammatory diseases and cancer based on Toll-like Receptor (“TLR”) biology and its ability to modulate the innate immune system. Our lead product candidate is HEPLISAV-BTM (also known as “HEPLISAV”), an investigational adult hepatitis B vaccine in Phase 3 clinical development.
	In addition to HEPLISAV-B, we are conducting clinical and preclinical programs that utilize our expertise in TLR biology. Our product candidates include both TLR agonists and TLR inhibitors. Our clinical stage programs include our autoimmune program partnered with GlaxoSmithKline (“GSK”), our asthma therapeutic program partnered with AstraZeneca AB (“AstraZeneca”), and our cancer immunotherapy program. We also are advancing preclinical development programs in adjuvant technology and TLR 7, 8 and 9 inhibition. 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. We were incorporated in California in August 1996 under the name Double Helix Corporation, and we changed our name to Dynavax Technologies Corporation in September 1996. We reincorporated in Delaware in 2000.
	Basis of Presentation
	Our accompanying unaudited condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information and pursuant to the instructions to Form 10-Q and Article 10 of Regulation S-X. In our opinion, these unaudited condensed consolidated financial statements include all adjustments, consisting only of normal recurring adjustments, which we consider necessary to fairly state our financial position and the results of our operations and cash flows. 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 expected for a full-year period or any other interim-period. The condensed consolidated balance sheet at December 31, 2013, 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, 2013, 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, among consolidated entities, have been eliminated. We operate in one business segment, which is dedicated to 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 March 31, 2014, we had cash, cash equivalents and marketable securities of $177.7 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 March 31, 2014 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-B, human clinical trials for our product candidates and additional applications and advancement of our technology. In order to continue these activities, 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. If adequate funds are not available in the future, we may need to delay, reduce the scope of or put on hold the HEPLISAV-B 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 informed estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results may differ materially from these estimates and assumptions.
	Summary of Significant Accounting Policies
	There have been no significant changes in our significant accounting policies during the three months ended March 31, 2014, as compared with those disclosed in our Annual Report on Form 10-K for the year ended December 31, 2013.
	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.
	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 method 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.
	Contingent consideration received for 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 all revenue recognition criteria have been satisfied.
	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.
	Research and Development Expenses and Accruals
	Research and development expenses include personnel and facility-related expenses, outside contracted services including clinical trial costs, manufacturing and process development costs, research costs and other consulting services and non-cash stock-based compensation. Research and development costs are expensed as incurred. Amounts due under such arrangements may be either fixed fee or fee for service, and may include upfront payments, monthly payments and payments upon the completion of milestones or receipt of deliverables. Non-refundable advance payments under agreements are capitalized and expensed as the related goods are delivered or services are performed.
	We contract with third parties to perform various clinical trial activities in the on-going development of potential products. The financial terms of these agreements are subject to negotiation, vary from contract to contract and may result in uneven payment flows to our vendors. Payments under the contracts depend on factors such as the achievement of certain events, successful enrollment of patients, completion of portions of the clinical trial or similar conditions. Our accruals for clinical trials are based on estimates of the services received and efforts expended pursuant to contracts with clinical trial centers and clinical research organizations. We may terminate these contracts upon written notice and we are generally only liable for actual effort expended by the organizations to the date of termination, although in certain instances we may be further responsible for termination fees and penalties. The Company makes estimates of its accrued expenses as of each balance sheet date based on the facts and circumstances known to the Company at that time. There have been no material adjustments to the Company’s prior period accrued estimates for clinical trial activities through March 31, 2014.
	Recent Accounting Pronouncements
	We believe that there have been no significant changes in our significant accounting policies during the three months ended March 31, 2014, as compared with those disclosed in our Annual Report on Form 10-K for the year ended December 31, 2013.

Fair_Value_Measurements

Fair Value Measurements	3 Months Ended
	Mar. 31, 2014
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 accounting standard describes a fair value hierarchy based on three levels of inputs, of which the first two are considered observable and the last unobservable, that may be used to measure fair value which are the following:
	·	Level 1—Observable inputs, such as quoted prices in active markets for identical assets or liabilities;
	·	Level 2—Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities; and
	·	Level 3—Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities, therefore requiring an entity to develop its own assumptions.
	The carrying amounts of cash equivalents, accounts payable and accrued liabilities are considered reasonable estimates of their respective fair value because of the short-term nature of these investments.
	Recurring Fair Value Measurements
	The following table represents the fair value hierarchy for our financial assets (cash equivalents and marketable securities) measured at fair value on a recurring basis (in thousands):
		Level 1		Level 2		Level 3		Total
	31-Mar-14
	Money market funds	$	25,196	$	-	$	-	$	25,196
	U.S. government agency securities		-		150,929		-		150,929
	Total	$	25,196	$	150,929	$	-	$	176,125
		Level 1		Level 2		Level 3		Total
	December 31, 2013
	Money market funds	$	20,013	$	-	$	-	$	20,013
	U.S. government agency securities		-		167,597		-		167,597
	Total	$	20,013	$	167,597	$	-	$	187,610
	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 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.
	There were no transfers between Level 1 and Level 2 during the three months ended March 31, 2014 or December 31, 2013.

Cash_Cash_Equivalents_and_Mark

Cash, Cash Equivalents and Marketable Securities	3 Months Ended
	Mar. 31, 2014
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 March 31, 2014 and December 31, 2013 (in thousands):
		Amortized Cost			Unrealized Gains			Unrealized Losses			Estimated Fair Value
	March 31, 2014
	Cash and cash equivalents:
	Cash	$	1,554		$	-		$	-		$	1,554
	Money market funds		25,196			-			-			25,196
	Total cash and cash equivalents		26,750			-			-			26,750
	Marketable securities available-for-sale:
	U.S. government agency securities		150,891			47			(9	)		150,929
	Total marketable securities available-for-sale		150,891			47			(9	)		150,929
	Total cash, cash equivalents and marketable securities	$	177,641		$	47		$	(9	)	$	177,679
	December 31, 2013
	Cash and cash equivalents:
	Cash	$	1,766		$	-		$	-		$	1,766
	Money market funds		20,013			-			-			20,013
	U.S. government agency securities		1,343			-			-			1,343
	Total cash and cash equivalents		23,122			-			-			23,122
	Marketable securities available-for-sale:
	U.S. government agency securities		166,285			16			(47	)		166,254
	Total marketable securities available-for-sale		166,285			16			(47	)		166,254
	Total cash, cash equivalents and marketable securities	$	189,407		$	16		$	(47	)	$	189,376
	The maturities of our marketable securities available-for-sale are as follows (in thousands):
			March 31, 2014
			Amortized Cost			Estimated Fair Value
	Mature in one year or less		$	86,050		$	86,070
	Mature after one year through two years			64,841			64,859
			$	150,891		$	150,929
	We have classified our entire investment portfolio as available-for-sale and available for use in current operations and accordingly have classified all investments as short-term. Available-for-sale securities are carried at fair value based on inputs that are observable, either directly or indirectly, such as quoted market prices for similar securities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the securities, with unrealized gains and losses included in accumulated other comprehensive 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 and ability 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 bases;
	·	the credit rating, financial condition and near-term prospects of the issuer; and
	·	the type of investments made.
	To date, there have been no declines in fair value that have been identified as other than temporary.

Commitments_and_Contingencies

Commitments and Contingencies	3 Months Ended
	Mar. 31, 2014
Commitments and Contingencies	'
	4. 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 an estimated unoccupied facility expense of $0.9 million in the third quarter of 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. During March 2014, we reassessed our timing and ability to sublet a portion of our facility and recorded an additional unoccupied facility expense of $0.1 million as of March 31, 2014.
	Total net rent expense related to our operating leases for both three month periods ended March 31, 2014 and 2013, was $0.4 million. Deferred rent was $0.6 million as of both March 31, 2014 and December 31, 2013.
	Future minimum payments under the non-cancelable portion of our operating leases at March 31, 2014, excluding payments from sublease agreements, are as follows (in thousands):
	Years ending December 31,
	2014 (remaining)	$	1,679
	2015		2,282
	2016		2,332
	2017		2,382
	2018		1,350
	Thereafter		2,496
	Total	$	12,521
	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 March 31, 2014, under the terms of our agreements, including certain agreements relating to the April 2014 initiation of the Phase 3 trial of HEPLISAV-B, we are obligated to make future payments as services are provided of approximately $38.4 million through 2016. 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 low single-digit royalties on net sales, if any, of certain products originating from the licensed technologies.

Collaborative_Research_and_Dev

Collaborative Research and Development Agreements	3 Months Ended
	Mar. 31, 2014
Collaborative Research and Development Agreements	'
	5. Collaborative Research and Development Agreements
	GlaxoSmithKline
	In December 2008, we entered into a worldwide strategic alliance with GSK to discover, develop and commercialize 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 TLR 8 program as one of the two additional programs under the collaboration.  GSK subsequently returned all rights to this program to us.
	We are currently conducting a Phase 1 clinical trial in the Lead TLR 7/9 program with DV1179 in systemic lupus erythematosus patients. We are not currently performing any activities on the Follow-On TLR 7/9 program. GSK has not yet chosen to initiate development of the remaining program under the agreement. In December 2013, we amended our agreement with GSK to extend the research term until conclusion of the ongoing Phase 1 study of DV1179. In addition, the exclusivity provisions of the agreement were modified, giving us rights to immediately begin preclinical and clinical research on inhibitors of TLR 7 and 9 (other than DV1179) for oncology indications.
	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 the TLR 8 program.
	Revenue from the initial payment from GSK was deferred and is being recognized over the expected period of performance under the agreement, initially estimated to be seven years. In the fourth quarter of 2013 we reevaluated and revised the expected period of performance under the agreement from seven years to six years resulting in the recognition of $0.3 million of additional revenue in 2013 and 2014.
	The following table summarizes the revenues recognized under our agreement with GSK (in thousands):
			Three Months Ended
			March 31,
			2014		2013
	Initial payment		$	631	$	357
	Total		$	631	$	357
	As of March 31, 2014 and December 31, 2013, deferred revenue relating to the initial payment was $1.9 million and $2.5 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 TLR 9 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 AZD1419. Under the terms of the amended agreement, AstraZeneca will fund all program expenses to cover the cost of development activities through Phase 2a, estimated to total approximately $20 million. We received an initial payment of $3 million in 2011 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 AZD1419 towards a Phase 1 clinical trial, which resulted in a development funding payment of $6 million, received in the fourth quarter of 2012. In January 2014, we again amended our agreement with AstraZeneca for the clinical development of AZD1419.  Under the terms of this amended agreement, upon completion of the Phase I trial responsibility for further conduct of clinical trials will be transferred from Dynavax to AstraZeneca.  In the first quarter of 2014, we received a $5.4 million payment that was due upon execution of this amended agreement. 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 received in 2006 was deferred and is being recognized over the expected period of performance under the agreement, which is approximately 50 months. Revenue from the $5.4 payment received in the first quarter of 2014 was deferred and is being recognized over the expected remaining period of performance under the agreement, which is approximately 24 months. Revenue from the development funding payments 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
			March 31,
			2014		2013
	Initial payment		$	180	$	180
	Subsequent payment			675		-
	Performance of research activities			887		346
	Total		$	1,742	$	526
	As of March 31, 2014 and December 31, 2013, total deferred revenue from the initial payment, subsequent payment and development funding payments was $8.4 million and $4.8 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 March 31, 2014 and 2013 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 TLR 8 for treatment of autoimmune diseases.
	·	May 2012, NIH awarded us $0.4 million to fund development of TLR 8 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.
	·	September 2008, NIAID awarded us a five-year $17 million contract to develop our ISS technology using TLR 9 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
			March 31,
			2014		2013
	NIAID contracts		$	874	$	598
	All other NIH contracts			251		162
	Total grant revenue		$	1,125	$	760

Net_Loss_Per_Share

Net Loss Per Share	3 Months Ended
	Mar. 31, 2014
Net Loss Per Share	'
	6. Net Loss Per Share
	Basic net loss per share is calculated by dividing the net loss by the weighted-average number of common shares outstanding during the period. Diluted net loss per share is computed by dividing the net loss by the weighted-average number of common shares outstanding during the period and giving effect to all potentially dilutive common shares using the treasury-stock method. For purposes of this calculation, common stock subject to repurchase by us, outstanding options, stock awards, warrants and Series B Convertible Preferred Stock are considered to be potentially dilutive common shares and are only included in the calculation of diluted net loss per share when their effect is dilutive. Outstanding warrants, stock options, Series B Convertible Preferred Stock and stock awards to purchase approximately 77,800,000 and 30,800,000 shares of common stock as of March 31, 2014 and 2013, respectively, were excluded from the calculation of diluted net loss per share for the quarters ended March 31, 2014 and 2013, because the effect of their inclusion would have been anti-dilutive.

Stockholders_Equity

Stockholders' Equity	3 Months Ended
	Mar. 31, 2014
Stockholders' Equity	'
	7. Stockholders’ Equity
	Option activity under our stock-based compensation plans during the three months ended March 31, 2014 was as follows (in thousands except per share amounts):
			Shares Underlying  Outstanding Options				Weighted-Average Exercise			Weighted-Average Remaining Contractual Term			Aggregate Intrinsic Value
			(in thousands)				Price Per Share			(years)			(in thousands)
	Balance at December 31, 2013			15,765			$	3.17
	Options granted			4,890				1.71
	Options exercised			-				-
	Options cancelled:
	Options forfeited (unvested)			(89	)			2.71
	Options cancelled (vested)			(461	)			3.71
	Balance at March 31, 2014			20,105				2.8			6.25		$	1,566
	Vested and expected to vest at March 31, 2014			20,105				2.8			6.25		$	1,566
	Exercisable at March 31, 2014			10,899				3.32			3.76		$	969
	Restricted stock unit activity under our stock-based compensation plans during the three months ended March 31, 2014 was as follows (in thousands except per share amounts):
		Number of Shares (In thousands)				Weighted-Average Grant-Date Fair Value
	Non-vested as of December 31, 2013		1,275			$	3.93
	Granted		1,505			$	1.8
	Vested		-			$	-
	Forfeited or expired		(1,000	)		$	4.22
	Non-vested as of March 31, 2014		1,780			$	1.76
	The aggregate intrinsic value of the restricted stock units outstanding as of March 31, 2014, based on our stock price on that date, was $3.2 million.
	As of March 31, 2014, approximately 1,000,000 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							Employee Stock Purchase Plan
			Three Months Ended							Three Months Ended
			March 31,							March 31,
			2014				2013			2014			2013
	Weighted-average fair value		$	1.57			$	2.7		$	0.92		$	1.46
	Risk-free interest rate			1.8	%			1.1	%		0.2	%		0.2	%
	Expected life (in years)			5.9				5.8			1.1			1.3
	Volatility			1.4				1.4			0.9			0.7
	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 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 is amortized to expense on a straight-line basis over the vesting periods. For equity awards with performance-based vesting criteria, the fair value is amortized to expense when the achievement of the vesting criteria becomes probable.
	We recognized stock-based compensation expense of $1.3 million and $4.3 million for the three months ended March 31, 2014 and 2013, respectively. Stock-based compensation during the three months ended March 31, 2013 included $2.1 million of expense for accelerated vesting of stock options related to management continuity and severance arrangements with certain former employees and executive officers. The Company recorded stock-based compensation expense for awards to non-employees of $0.1 million for the three months ended March 31, 2014.
	The components of stock-based compensation expense were (in thousands):
			Three Months Ended
			March 31,
			2014				2013
	Research and development		$	692			$	1,323
	General and administrative			578				2,943
	Total		$	1,270			$	4,266
	As of March 31, 2014, the total unrecognized compensation cost related to non-vested equity awards including all awards with time-based vesting amounted to $17.7 million, which is expected to be recognized over the remaining weighted-average vesting period of 3.19 years. Additionally, as of March 31, 2014, the total unrecognized compensation cost related to equity awards with performance-based vesting criteria not deemed probable of vesting amounted to $0.4 million.
	Employee Stock Purchase Plan
	As of March 31, 2014, 996,000 shares have been reserved and approved for issuance under the 2004 Employee Stock 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 887,987 shares of our common stock under the 2004 Employee Stock Purchase Plan including 59,573 shares during the three months ended March 31, 2014. As of March 31, 2014, 108,013 shares of our common stock remained available for future purchases.
	Warrants
	As of March 31, 2014, 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 three months ended March 31, 2014 warrants were exercised to purchase an aggregate of approximately 100 shares of our common stock. There were no warrants exercised during the three months ended March 31, 2013.
	Preferred Stock Outstanding
	As of March 31, 2014, there were 5,000,000 shares of preferred stock authorized and 43,430 shares of $0.001 par value Series B Convertible Preferred Stock outstanding. Each share of Series B Convertible Preferred Stock is convertible into 1,000 shares of common stock at any time at the holder’s option. However, the holder is prohibited from converting the Series B Convertible Preferred Stock into shares of common stock if, as a result of such conversion, the holder and its affiliates would own more than 9.98% of the total number of shares of common stock then issued and outstanding. In the event of the Company’s liquidation, dissolution, or winding up, holders of Series B Convertible Preferred Stock will receive a payment equal to $0.001 per share before any proceeds are distributed to the common stockholders. Shares of Series B Convertible Preferred Stock generally have no voting rights, except as required by law and except that the consent of holders of a majority of the outstanding Series B Convertible Preferred Stock is required to amend the terms of the Series B Convertible Preferred Stock. Holders of Series B Convertible Preferred Stock are not entitled to receive any dividends, unless and until specifically declared by the Company’s board of directors. The Series B Convertible Preferred Stock ranks senior to the Company’s common stock as to distributions of assets upon the Company’s liquidation, dissolution or winding up, whether voluntarily or involuntarily. The Series B Convertible Preferred Stock may rank senior to, on parity with or junior to any class or series of the Company’s capital stock created in the future depending upon the specific terms of such future stock issuance.

Organization_and_Summary_of_Si1

Organization and Summary of Significant Accounting Policies (Policies)	3 Months Ended
	Mar. 31, 2014
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 expected for a full-year period or any other interim-period. The condensed consolidated balance sheet at December 31, 2013, 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, 2013, 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, among consolidated entities, have been eliminated. We operate in one business segment, which is dedicated to 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 March 31, 2014, we had cash, cash equivalents and marketable securities of $177.7 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 March 31, 2014 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-B, human clinical trials for our product candidates and additional applications and advancement of our technology. In order to continue these activities, 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. If adequate funds are not available in the future, we may need to delay, reduce the scope of or put on hold the HEPLISAV-B 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 informed estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results may differ materially from these estimates and assumptions.
Summary of Significant Accounting Policies	'
	Summary of Significant Accounting Policies
	There have been no significant changes in our significant accounting policies during the three months ended March 31, 2014, as compared with those disclosed in our Annual Report on Form 10-K for the year ended December 31, 2013.
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.
	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 method 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.
	Contingent consideration received for 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 all revenue recognition criteria have been satisfied.
	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.
Research and Development Expenses and Accruals	'
	Research and Development Expenses and Accruals
	Research and development expenses include personnel and facility-related expenses, outside contracted services including clinical trial costs, manufacturing and process development costs, research costs and other consulting services and non-cash stock-based compensation. Research and development costs are expensed as incurred. Amounts due under such arrangements may be either fixed fee or fee for service, and may include upfront payments, monthly payments and payments upon the completion of milestones or receipt of deliverables. Non-refundable advance payments under agreements are capitalized and expensed as the related goods are delivered or services are performed.
	We contract with third parties to perform various clinical trial activities in the on-going development of potential products. The financial terms of these agreements are subject to negotiation, vary from contract to contract and may result in uneven payment flows to our vendors. Payments under the contracts depend on factors such as the achievement of certain events, successful enrollment of patients, completion of portions of the clinical trial or similar conditions. Our accruals for clinical trials are based on estimates of the services received and efforts expended pursuant to contracts with clinical trial centers and clinical research organizations. We may terminate these contracts upon written notice and we are generally only liable for actual effort expended by the organizations to the date of termination, although in certain instances we may be further responsible for termination fees and penalties. The Company makes estimates of its accrued expenses as of each balance sheet date based on the facts and circumstances known to the Company at that time. There have been no material adjustments to the Company’s prior period accrued estimates for clinical trial activities through March 31, 2014.
Recent Accounting Pronouncements	'
	Recent Accounting Pronouncements
	We believe that there have been no significant changes in our significant accounting policies during the three months ended March 31, 2014, as compared with those disclosed in our Annual Report on Form 10-K for the year ended December 31, 2013.

Fair_Value_Measurements_Tables

Fair Value Measurements (Tables)	3 Months Ended
	Mar. 31, 2014
Fair Value Hierarchy for Financial Assets Measured at Fair Value on Recurring Basis	'
	The following table represents the fair value hierarchy for our financial assets (cash equivalents and marketable securities) measured at fair value on a recurring basis (in thousands):
		Level 1		Level 2		Level 3		Total
	31-Mar-14
	Money market funds	$	25,196	$	-	$	-	$	25,196
	U.S. government agency securities		-		150,929		-		150,929
	Total	$	25,196	$	150,929	$	-	$	176,125
		Level 1		Level 2		Level 3		Total
	December 31, 2013
	Money market funds	$	20,013	$	-	$	-	$	20,013
	U.S. government agency securities		-		167,597		-		167,597
	Total	$	20,013	$	167,597	$	-	$	187,610

Cash_Cash_Equivalents_and_Mark1

Cash, Cash Equivalents and Marketable Securities (Tables)	3 Months Ended
	Mar. 31, 2014
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 March 31, 2014 and December 31, 2013 (in thousands):
		Amortized Cost			Unrealized Gains			Unrealized Losses			Estimated Fair Value
	March 31, 2014
	Cash and cash equivalents:
	Cash	$	1,554		$	-		$	-		$	1,554
	Money market funds		25,196			-			-			25,196
	Total cash and cash equivalents		26,750			-			-			26,750
	Marketable securities available-for-sale:
	U.S. government agency securities		150,891			47			(9	)		150,929
	Total marketable securities available-for-sale		150,891			47			(9	)		150,929
	Total cash, cash equivalents and marketable securities	$	177,641		$	47		$	(9	)	$	177,679
	December 31, 2013
	Cash and cash equivalents:
	Cash	$	1,766		$	-		$	-		$	1,766
	Money market funds		20,013			-			-			20,013
	U.S. government agency securities		1,343			-			-			1,343
	Total cash and cash equivalents		23,122			-			-			23,122
	Marketable securities available-for-sale:
	U.S. government agency securities		166,285			16			(47	)		166,254
	Total marketable securities available-for-sale		166,285			16			(47	)		166,254
	Total cash, cash equivalents and marketable securities	$	189,407		$	16		$	(47	)	$	189,376
Summary of Amortized Cost and Estimated Fair Value of Marketable Securities Available-for-Sale	'
	The maturities of our marketable securities available-for-sale are as follows (in thousands):
			March 31, 2014
			Amortized Cost			Estimated Fair Value
	Mature in one year or less		$	86,050		$	86,070
	Mature after one year through two years			64,841			64,859
			$	150,891		$	150,929

Commitments_and_Contingencies_

Commitments and Contingencies (Tables)	3 Months Ended
	Mar. 31, 2014
Future Minimum Payments Under Non-Cancelable Portion of Operating Leases	'
	Future minimum payments under the non-cancelable portion of our operating leases at March 31, 2014, excluding payments from sublease agreements, are as follows (in thousands):
	Years ending December 31,
	2014 (remaining)	$	1,679
	2015		2,282
	2016		2,332
	2017		2,382
	2018		1,350
	Thereafter		2,496
	Total	$	12,521

Collaborative_Research_and_Dev1

Collaborative Research and Development Agreements (Tables)	3 Months Ended
	Mar. 31, 2014
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
		March 31,
		2014		2013
	Initial payment	$	631	$	357
	Total	$	631	$	357
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
		March 31,
		2014		2013
	Initial payment	$	180	$	180
	Subsequent payment		675		-
	Performance of research activities		887		346
	Total	$	1,742	$	526
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
		March 31,
		2014		2013
	NIAID contracts	$	874	$	598
	All other NIH contracts		251		162
	Total grant revenue	$	1,125	$	760

Stockholders_Equity_Tables

Stockholders' Equity (Tables)	3 Months Ended
	Mar. 31, 2014
Option Activity under Stock-Based Compensation Plans	'
	Option activity under our stock-based compensation plans during the three months ended March 31, 2014 was as follows (in thousands except per share amounts):
			Shares Underlying  Outstanding Options				Weighted-Average Exercise			Weighted-Average Remaining Contractual Term			Aggregate Intrinsic Value
			(in thousands)				Price Per Share			(years)			(in thousands)
	Balance at December 31, 2013			15,765			$	3.17
	Options granted			4,890				1.71
	Options exercised			-				-
	Options cancelled:
	Options forfeited (unvested)			(89	)			2.71
	Options cancelled (vested)			(461	)			3.71
	Balance at March 31, 2014			20,105				2.8			6.25		$	1,566
	Vested and expected to vest at March 31, 2014			20,105				2.8			6.25		$	1,566
	Exercisable at March 31, 2014			10,899				3.32			3.76		$	969
Summary of Restricted Stock Units Activity	'
	Restricted stock unit activity under our stock-based compensation plans during the three months ended March 31, 2014 was as follows (in thousands except per share amounts):
		Number of Shares (In thousands)				Weighted-Average Grant-Date Fair Value
	Non-vested as of December 31, 2013		1,275			$	3.93
	Granted		1,505			$	1.8
	Vested		-			$	-
	Forfeited or expired		(1,000	)		$	4.22
	Non-vested as of March 31, 2014		1,780			$	1.76
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							Employee Stock Purchase Plan
			Three Months Ended							Three Months Ended
			March 31,							March 31,
			2014				2013			2014			2013
	Weighted-average fair value		$	1.57			$	2.7		$	0.92		$	1.46
	Risk-free interest rate			1.8	%			1.1	%		0.2	%		0.2	%
	Expected life (in years)			5.9				5.8			1.1			1.3
	Volatility			1.4				1.4			0.9			0.7
Stock-Based Compensation Expense	'
	The components of stock-based compensation expense were (in thousands):
			Three Months Ended
			March 31,
			2014				2013
	Research and development		$	692			$	1,323
	General and administrative			578				2,943
	Total		$	1,270			$	4,266

Organization_and_Summary_of_Si2

Organization and Summary of Significant Accounting Policies - Additional Information (Detail) (USD $)	3 Months Ended
In Millions, unless otherwise specified	Mar. 31, 2014
	Segment
Organization Consolidation And Presentation Of Financial Statements Disclosure [Line Items]	'
Number of operating segment	1
Cash, cash equivalents and marketable securities	$177.70

Fair_Value_Hierarchy_for_Finan

Fair Value Hierarchy for Financial Assets Measured at Fair Value on Recurring Basis (Detail) (Fair Value, Measurements, Recurring, USD $)	Mar. 31, 2014	Dec. 31, 2013
In Thousands, unless otherwise specified
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items]	'	'
Assets	$176,125	$187,610
Money Market Funds	'	'
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items]	'	'
Assets	25,196	20,013
U.S. Government Agency Securities	'	'
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items]	'	'
Assets	150,929	167,597
Fair Value, Inputs, Level 1	'	'
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items]	'	'
Assets	25,196	20,013
Fair Value, Inputs, Level 1 | Money Market Funds	'	'
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items]	'	'
Assets	25,196	20,013
Fair Value, Inputs, Level 2	'	'
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items]	'	'
Assets	150,929	167,597
Fair Value, Inputs, Level 2 | U.S. Government Agency Securities	'	'
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items]	'	'
Assets	$150,929	$167,597

Summary_of_Cash_Cash_Equivalen

Summary of Cash, Cash Equivalents and Marketable Securities Available-for-Sale (Detail) (USD $)	Mar. 31, 2014	Dec. 31, 2013
In Thousands, unless otherwise specified
Cash Cash Equivalents And Marketable Securities [Line Items]	'	'
Amortized Cost	$177,641	$189,407
Unrealized Gains	47	16
Unrealized Losses	-9	-47
Estimated Fair Value	177,679	189,376
Cash and Cash Equivalents	'	'
Cash Cash Equivalents And Marketable Securities [Line Items]	'	'
Amortized Cost	26,750	23,122
Estimated Fair Value	26,750	23,122
Marketable Securities Available-for-Sale	'	'
Cash Cash Equivalents And Marketable Securities [Line Items]	'	'
Amortized Cost	150,891	166,285
Unrealized Gains	47	16
Unrealized Losses	-9	-47
Estimated Fair Value	150,929	166,254
Cash | Cash and Cash Equivalents	'	'
Cash Cash Equivalents And Marketable Securities [Line Items]	'	'
Amortized Cost	1,554	1,766
Estimated Fair Value	1,554	1,766
Money Market Funds | Cash and Cash Equivalents	'	'
Cash Cash Equivalents And Marketable Securities [Line Items]	'	'
Amortized Cost	25,196	20,013
Estimated Fair Value	25,196	20,013
U.S. Government Agency Securities | Cash and Cash Equivalents	'	'
Cash Cash Equivalents And Marketable Securities [Line Items]	'	'
Amortized Cost	'	1,343
Estimated Fair Value	'	1,343
U.S. Government Agency Securities | Marketable Securities Available-for-Sale	'	'
Cash Cash Equivalents And Marketable Securities [Line Items]	'	'
Amortized Cost	150,891	166,285
Unrealized Gains	47	16
Unrealized Losses	-9	-47
Estimated Fair Value	$150,929	$166,254

Summary_of_Amortized_Cost_and_

Summary of Amortized Cost and Estimated Fair Value of Marketable Securities Available-for-Sale (Detail) (USD $)	Mar. 31, 2014
In Thousands, unless otherwise specified
Amortized Cost	'
Mature in one year or less	$86,050
Mature after one year through two years	64,841
Total amortized cost	150,891
Estimated Fair Value	'
Mature in one year or less	86,070
Mature after one year through two years	64,859
Total estimated fair value	$150,929

Commitments_and_Contingencies_1

Commitments and Contingencies - Additional Information (Detail) (USD $)	3 Months Ended			3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013	Dec. 31, 2013	Mar. 31, 2014	Sep. 30, 2013	Mar. 31, 2014
				Berkeley, California (the "Berkeley Lease")	Berkeley, California (the "Berkeley Lease")	Dusseldorf, Germany (the "Dusseldorf Lease")
Loss Contingencies [Line Items]	'	'	'	'	'	'
Operating leases expiration date	'	'	'	'2018-06	'	'2023-03
Unoccupied facility expense	$77,000	'	'	$100,000	$900,000	'
Rent expense, net	400,000	400,000	'	'	'	'
Deferred rent	600,000	'	600,000	'	'	'
Future payments obligation	$38,400,000	'	'	'	'	'

Future_Minimum_Payments_Under_

Future Minimum Payments Under Non-Cancelable Portion of Operating Leases (Detail) (USD $)	Mar. 31, 2014
In Thousands, unless otherwise specified
Operating Leased Assets [Line Items]	'
2014 (remaining)	$1,679
2015	2,282
2016	2,332
2017	2,382
2018	1,350
Thereafter	2,496
Total	$12,521

Collaborative_Research_and_Dev2

Collaborative Research and Development Agreements - Additional Information (Detail) (USD $)

12 Months Ended

1 Months Ended

3 Months Ended

12 Months Ended

1 Months Ended

3 Months Ended

1 Months Ended

12 Months Ended

3 Months Ended

1 Months Ended

Dec. 31, 2011

Dec. 31, 2008

Mar. 31, 2014

Dec. 31, 2013

Mar. 31, 2013

Dec. 31, 2011

Mar. 31, 2014

Mar. 31, 2014

Dec. 31, 2013

Sep. 30, 2006

Mar. 31, 2014

Mar. 31, 2013

Dec. 31, 2013

Oct. 31, 2011

Oct. 31, 2011

Dec. 31, 2011

Mar. 31, 2014

Dec. 31, 2012

Mar. 31, 2012

Mar. 31, 2014

Sep. 30, 2013

Jun. 30, 2012

31-May-12

Jul. 31, 2011

Aug. 31, 2010

Sep. 30, 2008

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

Amendment

Amendment

Amendment

Amendment

Amendment

Amendment

Hepatic Fibrosis and Cirrhosis

Autoimmune Disease

Rheumatoid Arthritis

Skin Autoimmune Inflammation

HBV

ISS Technology

Project

Expansion

Maximum

Maximum

Minimum

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 Institute Of Allergy And Infectious Diseases

National Institute Of Allergy And Infectious Diseases

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

631,000

'

357,000

'

'

'

'

'

180,000

180,000

'

'

3,000,000

'

5,400,000

6,000,000

2,600,000

'

'

'

'

'

'

'

Revenue from milestone payment

12,000,000

'

'

'

'

3,000,000

'

'

'

'

887,000

346,000

'

'

'

'

'

'

'

100,000,000

'

'

'

'

'

'

Deferred revenue recognition period

'

'

'

'

'

'

'7 years

'

'6 years

'

'24 months

'

'

'50 months

'

'

'

'

'

'

'

'

'

'

'

'

Additional revenue recognized

'

'

300,000

300,000

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

Deferred revenue

'

'

1,900,000

2,500,000

'

'

'

'

'

'

8,400,000

'

4,800,000

'

'

'

'

'

'

'

'

'

'

'

'

'

Research collaboration and license agreement period

'

'

'

'

'

'

'

'

'

'3 years

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

Cost of clinical development activities

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

20,000,000

'

'

'

'

'

'

'

'

'

'

Grants receivable

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

200,000

600,000

400,000

600,000

1,400,000

'

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 $)

3 Months Ended

12 Months Ended

3 Months Ended

1 Months Ended

3 Months Ended

In Thousands, unless otherwise specified

Mar. 31, 2014

Mar. 31, 2013

Dec. 31, 2011

Mar. 31, 2014

Mar. 31, 2013

Dec. 31, 2008

Mar. 31, 2014

Mar. 31, 2013

Mar. 31, 2014

Mar. 31, 2013

Mar. 31, 2014

Mar. 31, 2013

National Institutes of Health

National Institutes of Health

Glaxo, Smith, Kline

Glaxo, Smith, Kline

Glaxo, Smith, Kline

Astra Zeneca

Astra Zeneca

National Institute Of Allergy And Infectious Diseases

National Institute Of Allergy And Infectious Diseases

Product Information [Line Items]

'

'

'

'

'

'

'

'

'

'

'

'

Initial payment

'

'

'

'

'

$10,000

$631

$357

$180

$180

'

'

Subsequent payment

'

'

'

'

'

'

'

'

675

'

'

'

Milestone revenue

'

'

12,000

'

'

'

'

'

887

346

'

'

Total revenues

3,498

2,085

'

'

'

'

631

357

1,742

526

'

'

Grant revenue

$1,125

$760

'

$251

$162

'

'

'

'

'

$874

$598

Net_Loss_Per_Share_Additional_

Net Loss Per Share - Additional Information (Detail)	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013
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	77,800,000	30,800,000

Option_Activity_under_Stock_Pl

Option Activity under Stock Plans (Detail) (USD $)	3 Months Ended
In Thousands, except Per Share data, unless otherwise specified	Mar. 31, 2014
Number of Options Outstanding	'
Beginning balance	15,765
Options granted	4,890
Options exercised	'
Ending balance	20,105
Vested and expected to vest at end of period	20,105
Exercisable at end of period	10,899
Weighted-Average Price Per Share	'
Beginning balance	$3.17
Options granted	$1.71
Options exercised	'
Ending balance	$2.80
Vested and expected to vest at end of period	$2.80
Exercisable at end of period	$3.32
Weighted Average Remaining Contractual Life (In years)	'
Balance at March 31, 2014	'6 years 3 months
Outstanding options vested and expected to vest at end of period	'6 years 3 months
Options exercisable at end of period	'3 years 9 months 4 days
Aggregate Intrinsic Value	'
Balance at March 31, 2014	$1,566
Outstanding options (vested and expected to vest) at end of period	1,566
Options exercisable at end of period	$969
Unvested	'
Number of Options Outstanding	'
Options cancelled	-89
Weighted-Average Price Per Share	'
Options cancelled	$2.71
Vested	'
Number of Options Outstanding	'
Options cancelled	-461
Weighted-Average Price Per Share	'
Options cancelled	$3.71

Summary_of_Restricted_Stock_Un

Summary of Restricted Stock Units Activity (Detail) (Restricted Stock Units (RSUs), USD $)	3 Months Ended
In Thousands, except Per Share data, unless otherwise specified	Mar. 31, 2014
Restricted Stock Units (RSUs)	'
Number of shares	'
Beginning Balance	1,275
Granted	1,505
Vested	'
Forfeited or expired	-1,000
Ending Balance	1,780
Weighted Average Grant Date Fair Value	'
Beginning Balance	$3.93
Granted	$1.80
Vested	'
Forfeited or expired	$4.22
Ending Balance	$1.76

Stockholders_Equity_Additional

Stockholders' Equity - Additional Information (Detail) (USD $)	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013	Dec. 31, 2013
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]	'	'	'
Options vesting period	'4 years	'	'
Expiration period	'10 years	'	'
Expected dividend yield	0.00%	'	'
Stock-based compensation expense	$1,270,000	$4,266,000	'
Recognized stock-based compensation expense	'	2,100,000	'
Total unrecognized compensation cost related to non-vested equity awards	400,000	'	'
Warrants exercised	'	0	'
Preferred stock, shares authorized	5,000,000	'	5,000,000
Preferred stock, par value	$0.00	'	$0.00
Series B Convertible Preferred Stock	'	'	'
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]	'	'	'
Preferred stock, shares authorized	43,000	'	43,000
Stock issued during period, shares	43,430	'	'
Preferred stock, par value	$0.00	'	$0.00
Convertible common stock shares	1,000	'	'
Convertible preferred stock, terms of conversion	'The holder is prohibited from converting the Series B Convertible Preferred Stock into shares of common stock if, as a result of such conversion, the holder and its affiliates would own more than 9.98% of the total number of shares of common stock then issued and outstanding.	'	'
Convertible preferred stock, settlement terms	'In the event of the Company’s liquidation, dissolution, or winding up, holders of Series B Convertible Preferred Stock will receive a payment equal to $0.001 per share before any proceeds are distributed to the common stockholders.	'	'
Warrants	'	'	'
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]	'	'	'
Warrants to purchase common stock	12,500,000	'	'
Warrants exercisable per share	1.96	'	'
Warrants exercised	100	'	'
Time Based Vesting Schedule	'	'	'
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]	'	'	'
Total unrecognized compensation cost related to non-vested equity awards	17,700,000	'	'
Total unrecognized compensation cost, weighted-average vesting period	'3 years 2 months 9 days	'	'
Non Employee Awards	'	'	'
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]	'	'	'
Stock-based compensation expense	100,000	'	'
Restricted Stock Units (RSUs)	'	'	'
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]	'	'	'
Aggregate intrinsic value	$3,200,000	'	'
Performance based Vesting Condition	'	'	'
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]	'	'	'
Shares underlying stock options and restricted stock units awards with performance-based vesting criteria	1,000,000	'	'
2004 Employee Stock Purchase Plan	'	'	'
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]	'	'	'
Shares reserved and approved for issuance	996,000	'	'
Shares issued to employees	887,987	'	'
Shares remaining available for future purchases	108,013	'	'
2004 Employee Stock Purchase Plan | Current Period One	'	'	'
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]	'	'	'
Shares issued to employees	59,573	'	'

Fair_ValueBased_Measurements_a

Fair Value-Based Measurements and Weighted-Average Assumptions (Detail) (USD $)	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013
Stock Options	'	'
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]	'	'
Weighted-average fair value	$1.57	$2.70
Risk-free interest rate	1.80%	1.10%
Expected life (in years)	'5 years 10 months 24 days	'5 years 9 months 18 days
Volatility	1.40%	1.40%
Employee Stock Purchase Plan	'	'
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]	'	'
Weighted-average fair value	$0.92	$1.46
Risk-free interest rate	0.20%	0.20%
Expected life (in years)	'1 year 1 month 6 days	'1 year 3 months 18 days
Volatility	0.90%	0.70%

StockBased_Compensation_Expens

Stock-Based Compensation Expense (Detail) (USD $)	3 Months Ended
In Thousands, unless otherwise specified	Mar. 31, 2014	Mar. 31, 2013
Deferred Compensation Arrangement With Individual Share Based Payments [Line Items]	'	'
Stock-based compensation expense	$1,270	$4,266
Research and Development Expense	'	'
Deferred Compensation Arrangement With Individual Share Based Payments [Line Items]	'	'
Stock-based compensation expense	692	1,323
General and Administrative Expense	'	'
Deferred Compensation Arrangement With Individual Share Based Payments [Line Items]	'	'
Stock-based compensation expense	$578	$2,943