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Dynavax Reports Fourth Quarter and Year End 2015 Financial Results

Cash Balance of $196 Million; BLA Submission on Target


/EINPresswire.com/ -- BERKELEY, CA--(Marketwired - March 08, 2016) -  Dynavax Technologies Corporation (NASDAQ: DVAX) today reported financial results for the fourth quarter and year ended December 31, 2015.

The Company had $196.1 million in cash, cash equivalents and marketable securities as of December 31, 2015.

Total revenues for the year ended December 31, 2015, decreased by $7.0 million or 63 percent compared to the same period in 2014, primarily due to a $5.2 million decrease in collaboration revenue due to winding down of work performed for the AZD1419 program and expiration of our collaboration agreement with GSK in 2014.

Operating expenses increased by $6.8 million or seven percent during 2015 compared to 2014, primarily due to costs related to HBV-23, the Phase 3 clinical study of HEPLISAV-B™ completed in October 2015, preparation for the commercial launch of HEPLISAV-B in the United States and clinical trial expense for SD-101, Dynavax's cancer immunotherapeutic product candidate.

The net loss allocable to common stockholders for the year ended December 31, 2015 was $106.8 million, or $3.25 per share, compared to $90.7 million, or $3.45 per share for the year ended December 31, 2014.

"During 2015, we completed HBV-23 and significantly strengthened the Company's cash position. Earlier this year we reported that this third pivotal study had met both co-primary endpoints. We plan to resubmit the HEPLISAV-B BLA (Biologics License Application) to the FDA by the end of this month. Based on our expectation of a six-month review, if our application is approved we expect to launch this product in the fourth quarter of this year," said Eddie Gray, chief executive officer of Dynavax.

About Dynavax

Dynavax, a clinical-stage biopharmaceutical company, uses TLR biology to discover and develop novel vaccines and therapeutics in the areas of infectious and inflammatory diseases and oncology. Dynavax's lead product candidates are HEPLISAV-B, a Phase 3 investigational adult hepatitis B vaccine, and SD-101, an investigational cancer immunotherapeutic currently in several Phase 1/2 studies. For more information visit www.dynavax.com.

Forward Looking Statements

This release contains forward-looking statements, including statements regarding expected timing of the HEPLISAV-B BLA resubmission, possible approval, and expected launch. These statements are subject to a number of risks and uncertainties that could cause actual results to differ materially, including whether there will be the need for additional studies, further manufacturing enhancements or other activities, or other issues will arise that will delay the BLA resubmission and/or negatively impact the acceptance, review, duration of review and approval of the BLA by the FDA; whether we will successfully launch the product, possible claims against us, including enjoining sales of HEPLISAV-B based on the patent rights of others, and the potential size and value of approved indications addressable with HEPLISAV-B; initiation and completion of pre-clinical studies and clinical trials of our other product candidates, including SD-101, in a timely manner; the results of clinical trials and the impact of those results on the initiation or continuation of subsequent trials and issues arising in the regulatory process; achieving the objectives of and maintaining our collaborative and licensing agreements; our ability to execute on our commercial strategies; whether our financial resources will be adequate without the need to obtain additional financing and other risks detailed in the "Risk Factors" section of our most recent current periodic report filed with the SEC. These statements represent our estimates and assumptions only as of the date of this release. We do not undertake any obligation to update publicly any such forward-looking statements, even if new information becomes available.

                                                                            
                      DYNAVAX TECHNOLOGIES CORPORATION                      
                   CONSOLIDATED STATEMENTS OF OPERATIONS                    
                  (In thousands, except per share amounts)                  
                                (Unaudited)                                 
                                                                            
                                  Three Months Ended        Years Ended     
                                     December 31,          December 31,     
                                 --------------------- ---------------------
                                    2015       2014         2015       2014 
                                 ---------- ---------- ---------- ----------
Revenues:                                                                   
  Collaboration revenue                $535     $1,734     $2,765     $7,933
  Grant revenue                          75        142        683      2,688
  Service and license revenue            75        401        602        411
                                 ---------- ---------- ---------- ----------
Total revenues                          685      2,277      4,050     11,032
                                                                            
Operating expenses:                                                         
  Research and development           20,932     19,638     86,943     84,580
  General and administrative          6,699      5,052     22,180     17,377
  Unoccupied facility expense            --         --         --        386
                                 ---------- ---------- ---------- ----------
Total operating expenses             27,631     24,690    109,123    102,343
                                 ---------- ---------- ---------- ----------
                                                                            
Loss from operations               (26,946)   (22,413)  (105,073)   (91,311)
                                                                            
Interest income                         127         29        205        191
Interest expense                         --       (35)      (572)       (35)
Other income (expense), net            (43)        133        317        433
Loss on extinguishment of debt           --         --    (1,671)         --
                                 ---------- ---------- ---------- ----------
                                                                            
Net loss                           (26,862)   (22,286)  (106,794)   (90,722)
                                 ========== ========== ========== ==========
                                                                            
Preferred stock deemed dividend          --         --         --         --
                                                                            
Net loss allocable to common                                                
 stockholders                     ($26,862)  ($22,286) ($106,794)  ($90,722)
                                 ========== ========== ========== ==========
                                                                            
Basic and diluted net loss per                                              
 share allocable to common                                                  
 stockholders                       ($0.70)    ($0.85)    ($3.25)    ($3.45)
                                 ========== ========== ========== ==========
                                                                            
Shares used to compute basic and                                            
 diluted net loss per share                                                 
 allocable to common                                                        
 stockholders                        38,429     26,298     32,881     26,289
                                 ========== ========== ========== ==========
                                                                            
                                                                            
                      DYNAVAX TECHNOLOGIES CORPORATION                      
                        SELECTED BALANCE SHEET DATA                         
                               (In thousands)                               
                                (Unaudited)                                 
                                                                            
                                                   December 31, December 31,
                                                       2015         2014    
                                                   ------------ ------------
Assets                                                                      
  Cash, cash equivalents and marketable securities    $ 196,125    $ 122,652
  Property and equipment, net                            13,804        7,924
  Goodwill                                                2,043        2,277
  Other assets                                            4,661        5,437
                                                   ------------ ------------
Total assets                                          $ 216,633    $ 138,290
                                                   ============ ============
                                                                            
Liabilities and stockholders' equity                                        
  Deferred revenues                                     $ 2,654     $ 12,765
  Other liabilities                                      26,900       15,484
  Long-term debt                                             --        9,559
                                                   ------------ ------------
  Total liabilities                                      29,554       37,808
  Stockholders' equity                                  187,079      100,482
                                                   ------------ ------------
Total liabilities and stockholders' equity            $ 216,633    $ 138,290
                                                   ------------ ------------
                                                                            

Contact:
Michael Ostrach
Chief Financial Officer
510-665-7257
Email contact


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