BERKELEY, CA--(Marketwire - January 04, 2010) - Dynavax Technologies Corporation (NASDAQ: DVAX) announced today that stockholders approved the acquisition of
Symphony Dynamo, Inc. (SDI), including approximately $20 million in cash
and all rights to Dynavax's hepatitis C and cancer therapy programs.
Dynavax expects the proceeds from this transaction to contribute
significantly toward the completion of its registration trials for
HEPLISAV™, the Company's investigational adult hepatitis B vaccine.
In November 2009, Dynavax and Symphony Capital Partners, LP (Symphony)
announced new terms to satisfy the exercise price for Dynavax's option to
acquire SDI. Under this agreement, Dynavax:
-- Acquired approximately $20 million in cash held by SDI, and issued to
Symphony 13 million shares of Dynavax Common Stock
-- Issued 5-year warrants to Symphony for 2 million shares of Dynavax Common
Stock at an exercise price of $1.94 per share and cancelled Symphony's
currently outstanding warrants for 2 million shares
-- Reacquired the rights to Dynavax's proprietary technology for its
hepatitis C and cancer therapies. If Dynavax partners these programs,
Symphony will receive 50% of the first $50 million from any potential
upfront and development milestones received.
-- Deferred a $15 million obligation due to Symphony by 20 months (until
December 31, 2012) and converted the obligation previously payable solely
in cash, to payable in stock and/or cash at Dynavax's election
Following this transaction, Symphony and its co-investors own approximately
24% of total Dynavax Common Stock outstanding. Dynavax has expanded its
Board of Directors to include Mark Kessel, Partner, Symphony Capital LLC.
As part of the agreement, one independent Director acceptable to both
Symphony and Dynavax will be appointed, as long as Symphony's ownership
exceeds more than 10% of the total Dynavax Common Stock outstanding.
Wedbush PacGrow Life Sciences acted as advisor to Dynavax in this
About Symphony Dynamo, Inc. (SDI)
SDI was capitalized with $50 million in April 2006 by Symphony Capital
Partners, LP and its co-investors to advance certain of Dynavax's programs
for hepatitis B, hepatitis C, and cancer therapies. In April 2007, Dynavax
exercised its option to purchase the hepatitis B therapy program.
About Symphony Capital LLC
Symphony Capital LLC is a private equity firm dedicated to collaborating
with leading innovative biopharmaceutical companies, helping them capture
more of the value in their most important clinical development programs.
Symphony's unique investment strategy brings a combination of dedicated
capital, deep industry expertise and tailored investment structures to
biopharmaceutical companies with compelling pipelines of products in all
stages of clinical development. Additional information about Symphony is
available at www.symphonycapital.com.
Dynavax Technologies Corporation, a clinical-stage biopharmaceutical
company, discovers and develops novel products to prevent and treat
infectious diseases. The Company's lead product candidate is HEPLISAV, an
investigational adult hepatitis B vaccine designed to provide more rapid
and increased protection with fewer doses than current licensed vaccines.
For more information, visit www.dynavax.com.
This press release contains "forward-looking statements," that are subject
to a number of risks and uncertainties, including the expected use of
proceeds from the acquisition of Symphony Dynamo, Inc. Actual results may
differ materially from those set forth in this press release due to the
risks and uncertainties inherent in our business, including whether
successful clinical and regulatory development and approval of HEPLISAV can
occur in a timely manner or without significant additional studies or
difficulties or delays in development, whether the studies can support
registration for commercialization of HEPLISAV, initiation and completion
of clinical trials of the Company's other product candidates; the results
of clinical trials and the impact of those results on the initiation and
completion of subsequent trials and issues arising in the regulatory
process; the Company's ability to obtain additional financing to complete
the development and commercialization of HEPLISAV and its other operations,
possible claims against the Company based on the patent rights of others;
and other risks detailed in the "Risk Factors" section of our current
periodic reports with the SEC. We undertake no obligation to revise or
update information herein to reflect events or circumstances in the future,
even if new information becomes available.