BERKELEY, CA--(Marketwire - November 04, 2010) - Dynavax Technologies Corporation (NASDAQ: DVAX) today reported financial results for the third quarter ended September 30, 2010, including $47.2 million in cash, cash equivalents and marketable securities. This compared to $57.4 million at June 30, 2010. In November 2010, the Company received $42.7 million from the successful completion of a public offering and a grant covering certain research costs, resulting in current cash, cash equivalents and marketable securities in excess of $83 million as of the date of this release.
In particular, the $47.2 million in reported cash at September 30, 2010 does not reflect the net proceeds of $42.0 million from the Company's public offering and $0.7 million in grants under The Patient Protection and Affordable Care Act of 2010 covering research and development costs from 2009 and 2010 for three of the Company's qualified therapeutic discovery projects including HEPLISAV™. The $10.2 million net cash usage reported for the third quarter 2010 included a $2.0 million initial purchase of the Company's common stock by Aspire Capital Fund, LLC that the Company received upon executing its September 2010 financing arrangement.
Total revenues of $11.6 million for the third quarter 2010 included recognition of the $10.0 million upfront payment received from AstraZeneca in 2006 following the recent amendment of our collaboration agreement. This compared to $2.9 million reported for the third quarter in 2009.
Total operating expenses of $18.4 million for the third quarter 2010, driven by continued clinical and manufacturing activities for HEPLISAV, were consistent with the $18.5 million reported for the second quarter 2010. Total operating expenses for the third quarter 2009 of $13.6 million were lower prior to restarting the HEPLISAV clinical program in September 2009.
The tables included as part of this press release provide a reconciliation of GAAP revenues and operating expenses to pro forma revenues and operating expenses.
About Dynavax
Dynavax Technologies Corporation, a clinical-stage biopharmaceutical company, discovers and develops novel products to prevent and treat infectious diseases. The company's lead product candidate is HEPLISAV, a Phase 3 investigational adult hepatitis B vaccine designed to enhance protection more rapidly and with fewer doses than current licensed vaccines. For more information visit www.dynavax.com.
- tables to follow -
DYNAVAX TECHNOLOGIES CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share amounts)
(Unaudited)
Three Months Ended Nine Months Ended
September 30, September 30,
-------------------- --------------------
2010 2009 2010 2009
--------- --------- --------- ---------
Revenues:
Collaboration revenue $ 10,402 $ 1,791 $ 19,164 $ 34,079
Grant revenue 1,218 887 2,697 2,921
Service and license revenue 29 223 323 1,129
--------- --------- --------- ---------
Total revenues 11,649 2,901 22,184 38,129
Operating expenses:
Research and development 14,204 9,631 40,729 29,202
General and administrative 3,951 3,736 12,694 11,693
Amortization of intangible
assets 245 245 735 735
--------- --------- --------- ---------
Total operating expenses 18,400 13,612 54,158 41,630
--------- --------- --------- ---------
Loss from operations (6,751) (10,711) (31,974) (3,501)
Interest income 12 18 53 174
Interest expense (399) (93) (1,229) (120)
Other income (expense) 2,140 80 (9,036) (40)
--------- --------- --------- ---------
Net loss (4,998) (10,706) (42,186) (3,487)
Add: Losses attributed to
noncontrolling interest in SDI -- 1,200 -- 3,192
--------- --------- --------- ---------
Net loss attributable to
Dynavax $ (4,998) $ (9,506) $ (42,186) $ (295)
========= ========= ========= =========
Basic and diluted net loss per
share attributable to Dynavax
stockholders $ (0.06) $ (0.24) $ (0.57) $ (0.01)
========= ========= ========= =========
Shares used to compute basic
and diluted net loss per share
attributable to Dynavax
stockholders 86,826 40,153 74,519 39,990
========= ========= ========= =========
DYNAVAX TECHNOLOGIES CORPORATION
RECONCILIATION OF GAAP REVENUES TO PRO FORMA REVENUES
(In thousands)
(Unaudited)
Three Months Nine Months
Ended Ended
September 30, September 30,
----------------- -----------------
2010 2009 2010 2009
-------- -------- -------- --------
GAAP revenues $ 11,649 $ 2,901 $ 22,184 $ 38,129
ADD:
Collaboration funding incurred
under SDI programs -- 1,009 -- 2,551
LESS:
Non-cash deferred revenue from
collaborations 10,000 -- 10,000 28,485
-------- -------- -------- --------
Pro forma revenues (1) $ 1,649 $ 3,910 $ 12,184 $ 12,195
======== ======== ======== ========
(1) These pro forma amounts are intended to illustrate the Company's
revenues including collaboration funding provided for the SDI
programs and excluding certain non-cash items. The collaboration
funding is reflected in the amount attributed to the
noncontrolling interest in SDI in the Company's consolidated
statement of operations, but would have been reported as revenue
if SDI's results of operations were not consolidated with those of
the Company. Management of the Company believes the pro forma
results are a more useful measure of the Company's revenues
because it provides investors the ability to evaluate the
Company's operations in the manner that management uses to assess
the continued progress of operating programs. These pro forma
results are not in accordance with, or an alternative for,
generally accepted accounting principles and may be different from
pro forma measures used by other companies.
DYNAVAX TECHNOLOGIES CORPORATION
RECONCILIATION OF GAAP OPERATING EXPENSES TO PRO FORMA OPERATING EXPENSES
(In thousands)
(Unaudited)
Three Months Nine Months
Ended Ended
September 30, September 30,
----------------- -----------------
2010 2009 2010 2009
-------- -------- -------- --------
GAAP operating expenses $ 18,400 $ 13,612 $ 54,158 $ 41,630
LESS:
Stock-based compensation expense 586 916 1,552 2,102
Amortization of intangible assets 245 245 735 735
-------- -------- -------- --------
Pro forma operating expenses (2) $ 17,569 $ 12,451 $ 51,871 $ 38,793
======== ======== ======== ========
(2) These pro forma amounts are intended to illustrate the Company's
operating expenses excluding certain non-cash charges in
accordance with the financial statements that management uses to
evaluate the Company's operations. These pro forma results are
not in accordance with, or an alternative for, generally accepted
accounting principles and may be different from pro forma
measures used by other companies.
DYNAVAX TECHNOLOGIES CORPORATION
SELECTED BALANCE SHEET DATA
(In thousands)
(Unaudited)
September 30, December 31,
2010 2009
------------ ------------
Assets
Cash and cash equivalents and marketable
securities $ 47,231 $ 36,720
Property and equipment, net 6,634 7,997
Goodwill 2,312 2,312
Other intangible assets, net 544 1,279
Other assets 5,069 2,162
------------ ------------
Total assets $ 61,790 $ 50,470
============ ============
Liabilities and stockholders' equity
Accounts payable $ 2,067 $ 1,686
Accrued liabilities 17,530 7,507
Warrant liability to Holdings -- 2,567
Current portion of deferred revenue 1,429 2,718
Noncurrent portion of deferred revenue 6,012 17,083
Long-term note payable to Holdings 10,540 9,342
Long-term contingent liability to Holdings 944 3,040
Other long-term liabilities 60 151
Stockholders' equity 23,208 6,376
------------ ------------
Total liabilities and stockholders' equity $ 61,790 $ 50,470
============ ============
