DVAX - Earnings call transcript Q2 2019 | Dynavax Technologies Corporation

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Operator

Good day, ladies and gentlemen. And welcome to the Dynavax Technologies' Second Quarter 2019 Conference Call.

As a reminder, this conference call is being recorded.

I would now like to introduce your host for today's conference, Ms. Heather Rowe, Vice President of Investor Relations and Corporate Communications.

again. go may You

Heather Rowe

Vice Good financial welcome conference results are and me Operator. Ostrach, and second Financial Chief call. the quarter today Officer. Senior Co-President Spencer, XXXX and Ryan of afternoon. you, Commercial to Michael And Dynavax With President Thank corporate update

and making amounts rates commercial begin, expectations profile assets. I be regarding that clinical and including revenue, today, reorder, HEPLISAV-B, we you we statements information adoption strategic statements abilities the timing financial and of of successfully Before to will immuno-oncology alternatives including and advise forward-looking and about HEPLISAV-B's our for our pursue

statements These you periodic release, reports detailed current which in to to results differ XX-K risks of materially. section SEC, we XX-Q encourage the These and review. Risk and and are Factors to summarized number of press uncertainties are risks our filed could today's actual subject that the cause are all with a in

the over Ryan With that, call to I'll Spencer. turn now

Ryan Spencer

Thank second quarter you you, our to results. all us today Heather. for XXXX review joining And thank

we begin, that let we I a for have you want different know to today. slightly Before format will

around imagine, announced you as can As this some there that. activity afternoon. will we offering you be And probably an saw,

remarks are having we a we this Q&A providing So our will only prepared session. and afternoon, not be

$X.X approved line gross to have the HEPLISAV-B the hepatitis B the sales that this million. for sales patients for is in in United $XXX This and FDA, in only standard reported market of HEPLISAV-B Hepatitis by our of with profile, of States the two-dose will with XX% we the XXXX. sales studies. clinical than potential to million the become vaccination, adult Based B more adults up a and peak care was of leader of net which expectations. of ultimately on we believe continue to protected second and Today, $X.X million vaccine first consistently quarter, for first HEPLISAV-B compares quarter net

As to already a during thank company employees, and quarter, both know, remain. departing our or like immuno-oncology we be those decision we moment the additional not announced of fund I'd likely our the those that have strategic will soon who take all programs. you development to who to had will taken -- research

are to our and valuable deliver people as Our our assets be many will possible. for most as patients to the reshape responsible as company HEPLISAV-B driving we success

are now as the develop We sales focused business in our America completely with and North grow driver. main continuing HEPLISAV-B on to vaccine the

number good our sales we momentum growth. seeing our one and Commercial objective, are execution in is

growth them. convert Importantly, on then favorable multi implementing clinical will a profile step substantial our this the well our of revenue we expect believe is this process. the flow. regimen received us and result Making to we customer, carries requires keep to switch HEPLISAV-B we to In part experience, in customers. dosing decision through HEPLISAV-B a effort and new a Once the

to value. adopt lengthens to move the a back the switch. And cycle, think work through unlikely going quickly are dose takes investment term after to do HEPLISAV-B, regimen. go and time long provides not While process this the three Institutions we customers sales to

segment. accounts To-date, of adult targets. our purchased of HEPLISAV-B in IDNs, the XXX We accounts. doses over HEPLISAV-B, represent XXX represent Integrated target our including have X,XXX top of in our customers or order largest to than customer more add targeted XX% to delivery our account continue is individual wins. XXX targeted available market. These networks, HEPLISAV-B

progress in with We HEPLISAV-B to XX in order available make IDNs. this segment to of XX continue top

choice. makers in of HEPLISAV-B and operate some organizational access system exclusive and is we for a decision with that pull physician control, level Now, to it vote this choice system in must cases, the processes. sites is understand patients P&T through departments with it's utilization available does individual important work to a instance, In for implementation. or the and each after on or use physicians department within IDN different others based In

that good have hospitals work represents their secure utilization, found and doses, portion employee while number entry within large health of and is point a the of of of significant IDNs We rest the to we a system.

particularly effort expanding We've six is is retail gained pharmacy represent top chains retail adult patients vaccine critical in Establishing pharmacy. chains. market contracts Hepatitis in the the within retails B executed the We've within seven retail the segment also the reach estimate to now our traction with to XX% HEPLISAV-B the the of pharmacy on path relevant and a of diabetes. step with strong We about top channel. market purchase seven

continued In sales objectives. short, we the our to steady making million excellent positions We beyond HEPLISAV-B between and revenue achieve for and for expect believe progress, product long-term net our towards efforts into going million are full well XXXX XXXX. this growth commercialization of $XX and year us $XX

of August start recommendation were necessary was the to Immunization HEPLISAV-B Kaiser April initiate of XXXX. the the activities. The beyond enrollment studies to our to Now Permanente on anchored marketing California study end Southern startup to XXXX. the commercialization Practices and move Committee for HEPLISAV-B planned, in was post Kaiser study, as complete expect were forward efforts, published continue October. by for which These that we conducting initiated Advisory study in is recommendations

thus, with to events, on original analysis which driven. rates expectations. in updated remaining XXXX. As of consistent been milestones for not the such, are been are time and mid-XXXX started the based have August the And have based study interim rather start timelines cardiac projected vaccinations The timelines that are in analyses, accordingly. in event data instead were And expected they

good overall a progress quarter on productive with number of very So a fronts.

Michael discuss that, call now With results. the turn I'll over to our financial to

Michael Ostrach

found details our afternoon. regarding we press Further the Ryan. results financial this be you, release issued Thank can in

at revenue for price, sales $X.X reductions fees. of which second you to Product As net discounts, returns, second $X.X product the backs, charge quarter recorded quarter for the net million heard, the reflects revenue and other XXXX. was million is sales estimated for XXXX compared of from

million was to for XXXX. second $X.X Cost second product of quarter million of compared of sales quarter for $X.X XXXX the the

in the The of as percentage approval product. of sell absolute and the reflects incentives second expense we resuming inventory sold after of a charges both capacity associated of product we and expensed HEPLISAV-B of And sales compared we expect presentation. most in Thus, of -- higher with after was increase therefore, dollars included to a excess XXXX inventories sold HEPLISAV-B periods, produce will and our PFS sales that components associated with percentage product quarter XXXX as XXXX, as cost revenue approval manufacturing of the when future expect manufactured manufacturing operations in full cost R&D. use

The of XXXX, we around And of per additional were diluted for net personnel million, $XX.X to strategic million XXXX per operations restructuring this the second securities to had basic million. $XXX.X million XXXX. basic increase activities. supportive primarily diluted due equivalents commercial share or $XX.X and HEPLISAV-B June and compared quarter quarter XX, was cash, second at was and $X.XX quarter share loss of for a the and $X.XX development R&D. expenses compared to significantly the to announced curtail of second of million of million organizational In $XX.X XXXX. May for $XX.X business second in and investment second quarter align our $XX.X million for vaccine immune-oncology and administrative XXXX to the Research further for late the second quarter totaling the and compared net expenses Selling, XXXX, And May general we loss quarter of were the -- for $XX.X or marketable cash XXXX. the

for our outplacement; May as related estimated related to And stock is and finally, to to million of is to options. stock the exercise result million which; XXrd and benefits based related $X.X severance, termination restructuring compensation costs $X.X $X.X awards stock expense total vesting of of million, be accelerated other a restructuring announcement is periods

costs XX, the XXXX. recognized expected be restructuring months annually. as we the all oncology we our quarter. million $X After reef million are and commitments compensation to reduce end $XX ended approximately reduction oncology $X.X workforce per approximately previously The reported have existing of first remaining expenses be June by charges by $X.X operating costs During the external by And will expected to trials to as quarter million million. the benefits estimate three is to compared related is and complete, recognized we reduced XXXX,

recently our year. -- $X.X as our we reduced And Now office expectation is subleased headcount, by smaller $X HEPLISAV-B, the a our will almost result and restructuring business on per focusing a million facilities' expenses million overall, space. of that commercializing reduce

X of X addition, agreed July the further measurement for sales XX June for of year, -- annual XXXX removing period lender, periods to including amend the of in agreement, our In the year we've our loan months on revenue January CRG, July revising to HEPLISAV-B on thresholds beginning subsequent each the beginning to and from each XXXX. with X, obligations

have remaining HEPLISAV-B the dates minimum trajectory measurement are revenue the the shifted, of although, required belief consistent our term unchanged with sales. long in So amounts

be to increased position. agreement with change liquidity beyond. equity confidence our to debt provide continue revenue this our our confident for We believe estimates XXXX And in holders and should in

I'd remarks. to back like to closing now turn Ryan called for the

Ryan Spencer

holds to forward what the of balance We shareholders. Michael. for company, Thanks, and year the look its the

HEPLISAV-B HEPLISAV-B First, from of anticipate momentum the remainder we sales and the year. strong revenue have increased during

in the earlier, post-marketing expect mentioned we studies complete in to I enrollment As our quarter. HEPLISAV-B fourth

of of HEPLISAV-B patients in four on a be XXX early and completed evaluating are enrollment to XXXX. we regimen patients Additionally, in expect dose hemodialysis,

hard also to opportunities generation done target HEPLISAV-B launch, within the into the use We investigate adjuvant, complexities our continue we additional which XXXX makes and so vaccines. broaden to Since the effective opportunities of understand next have necessary work to our market.

have dose with received HEPLISAV-B. in seroprotection of interactions two decision to makers. regimen physicians the consistently other and reinforced well continues customer of be value higher belief combined Our by rates ultimate our The

have nurses HEPLISAV-B gross of become providers, standard-of-care, that the up advocacy expectation the still the ultimately peak to do, leader reaching will from in to the we States While reinforce United physicians, responses and million. and sales and our market $XXX work other

this stage for HEPLISAV-B any as our into accomplish make protect thank we we commitment to build beyond, commercial their potential in today. more We Dynavax and began. organization members And from that, to We with and market let all possible. has XXXX will leading team me to investors to product goal. the in company. than believe vaccine Hepatitis adult have where a patients our And look forward this U.S. with the we reshaped we close We B

Operator

joining today. Thank you for us

We will disconnect. now

Dynavax Technologies (DVAX) 7 Aug 192019 Q2 Earnings call transcript