Dynavax to Advance Cancer, Hepatitis B and Hepatitis C Therapy Programs With $50 Million Funding

Collaborative Financing From Symphony Capital Partners, LP Designed to

Advance Next-Generation TLR-Agonist Pipeline

Apr 19, 2006, 01:00 ET from Dynavax Technologies Corporation

    BERKELEY, Calif., April 19 /PRNewswire-FirstCall/ -- Dynavax
 Technologies Corporation (Nasdaq:   DVAX) announced an agreement with
 Symphony Capital Partners, LP and its co-investors to provide $50 million
 of committed capital to advance Dynavax's ISS-based cancer, hepatitis B and
 hepatitis C therapeutic programs through clinical development.
     Under the terms of the agreement, Symphony Capital, a private equity
 fund, has established Symphony Dynamo, Inc., which will be capitalized
 initially with $20 million and an additional $30 million within one year
 following closing to fund Dynavax's identified development programs in
 cancer and hepatitis therapeutics. Dynavax has granted a license to the
 intellectual property for the ISS compounds selected for the Symphony
 Dynamo programs. Through a purchase option, Dynavax retains the exclusive
 right, but not the obligation, to acquire certain of the programs at
 specified points in time, or the entire set of funded programs at specified
 prices during the term of the development period. The term of the agreement
 is up to five years. The implementation of the development plans will be
 led by Dynavax with support from RRD International, LLC, Symphony Capital's
 clinical development partner, to provide additional clinical development
 and regulatory capabilities for the advancement of Dynavax's cancer,
 hepatitis B and hepatitis C therapeutic programs.
     "We believe that this collaborative financing arrangement is timely and
 opportune, and fulfills key strategic goals for our company. It will enable
 us to continue to focus critical resources on advancing our lead programs
 in ragweed allergy and hepatitis B vaccines and provide additional
 minimally dilutive funding for investment in our early-stage,
 second-generation programs. This approach should allow us to build
 additional value in our pipeline and expand our partnering opportunities,
 all in a risk-reduced manner," said Dino Dina, MD, president and chief
 executive officer.
     Continued Dr. Dina: "We can now invest more robustly in our cancer and
 hepatitis therapeutics pipeline, optimize the potential of our
 second-generation ISS-based technology, and accelerate creation of a new
 set of partnering assets. With TOLAMBA and HEPLISAV having achieved
 proof-of-concept and advancing through late-stage clinical trials and
 potentially toward registration, we believe now is the right time to invest
 in our cancer, hepatitis B and hepatitis C therapeutic programs. This
 financing strategy is consistent with our overall corporate strategy to
 have a steady stream of product opportunities moving into and through the
 clinic, to advance next-generation programs that represent attractive
 therapeutic and commercial opportunities, and to generate a meaningful
 return on investment for our shareholders."
     Financial Terms
     Funds from the arrangement will be dedicated to Dynavax's cancer
 product candidate, currently in a Phase 2 trial in Non-Hodgkin's lymphoma
 and anticipated to advance into clinical trials in solid tumors in 2006,
 and its hepatitis B and C therapeutic product candidates, which are
 anticipated to enter the clinic in 2007.
     Symphony Dynamo will be capitalized initially with $20 million and an
 additional $30 million within one year following closing. Dynavax will
 issue to Symphony Dynamo investors five-year warrants to purchase two
 million shares of Dynavax common stock at $7.32 per share, representing a
 25% premium over the recent 60-day trading range average of $5.86 per
 share. The term of the warrants is five years and the exercise price is
 subject to reduction to $5.86 per share under certain circumstances.
     Dynavax will have an exclusive option, exercisable at its sole
 discretion, to acquire all of the programs through the purchase of all of
 the equity in Symphony Dynamo, exercisable at any time beginning one year
 after the closing date of the transaction and ending either five years
 after the closing date or at a time when the funding balance remaining in
 Symphony Dynamo reaches a certain minimum level. The purchase price is
 based on a compounded annual rate of return of 27% calculated as of the
 time of exercise. The purchase option exercise price is payable in cash or
 a combination of cash and shares of Dynavax common stock, at Dynavax's sole
 discretion. Dynavax also has an option to purchase either the hepatitis B
 or hepatitis C program during the first year of the agreement.
     Dynavax plans to consolidate the results of operations of Symphony
 Dynamo into its financial statements in the second quarter of 2006. To the
 extent that Dynavax contributes existing internal resources to the Symphony
 Dynamo programs as planned, the company currently estimates that the
 transaction may have a positive impact on both Dynavax's use of cash and
 the timing of future capital requirements.
     Symphony Dynamo will be governed by a board of directors, comprised of
 one Dynavax representative, Dino Dina, MD, two representatives from
 Symphony Capital Partners, Harri Taranto and Mark Kessel, and two
 independent directors, one of whom is Ann Arvin, MD, the Lucile Salter
 Packard Professor of Pediatrics, Associate Dean of Research, Professor of
 Microbiology & Immunology and Chief of Pediatric Infectious Diseases at
 Stanford University School of Medicine.
     JMP Securities LLC served as advisor to Dynavax in this transaction.
     Conference Call Today
     Dynavax will hold a conference call to discuss the Symphony Dynamo
 transaction today at 4:30 pm Eastern/1:30 pm Pacific. To access the live
 call, please dial 866.543.6403 (US) or 617.213.8896 (international),
 passcode 90694187. Interested parties may listen to the webcast live at
 http://www.dynavax.com by clicking on the "Events" tab under the heading,
 "Investors." The webcast is also being distributed over CCBN's Investor
 Distribution Network to both institutional and individual investors.
 Individual investors can listen to the call through CCBN's individual
 investor center at http://www.fulldisclosure.com or by visiting any of the
 investor sites in CCBN's Individual Investor Network. Institutional
 investors can access the call via CCBN's password-protected event
 management site, StreetEvents, at http://www.streetevents.com . A
 telephonic replay will be available through April 24, 2006 by dialing
 888-286-8010, access code 67463566. International callers can dial
 617-801-6888, access code 67463566.
     About Symphony Capital Partners, LP
     Symphony Capital is a New York-based private equity firm that invests
 in development stage biopharmaceutical programs. Symphony has the most
 experienced team for project-specific financings and has $315 million in
 private equity capital dedicated to invest exclusively in the type of
 collaboration undertaken with Dynavax. Symphony Capital Partners is the
 lead investor in Symphony Dynamo. Additional information about Symphony is
 available at www.symphonycapital.com.
     About RRD International, LLC
     RRD International, LLC (RRD) is an innovative product development
 company dedicated to supporting the global regulatory, preclinical and
 clinical needs of biotechnology, pharmaceutical and medical device
 companies. RRD provides comprehensive strategic planning and operational
 support from program inception to product approval including the design,
 management and execution of clinical trials. RRD's team of highly
 experienced drug and device developers has a substantial record of
 favorable FDA interactions and outcomes. Through its customized and
 flexible business approach, RRD offers a unique risk-sharing model,
 enabling its goals and interests to be aligned with a partner company's
 success. Additional information about RRD is available at www.rrdintl.com.
     About Dynavax
     Dynavax Technologies Corporation discovers, develops, and intends to
 commercialize innovative products to treat and prevent allergies,
 infectious diseases, and chronic inflammatory diseases using versatile,
 proprietary approaches that alter immune system responses in highly
 specific ways. Our clinical development programs are based on
 immunostimulatory sequences, or ISS, which are short DNA sequences that
 enhance the ability of the immune system to fight disease and control
 chronic inflammation. Dynavax's pipeline includes: TOLAMBA(TM), a ragweed
 allergy immunotherapeutic, that has completed a large-scale Phase 2/3
 clinical trial, and is in a supportive clinical trial in ragweed allergic
 children; HEPLISAV(TM), a hepatitis B vaccine that is currently in a
 pivotal Phase 3 clinical trial; a cancer therapy currently in a Phase 2
 clinical trial; and an asthma immunotherapeutic that has shown preliminary
 safety and pharmacologic activity in a Phase 2a clinical trial.
     Dynavax cautions you that statements included in this press release
 that are not a description of historical facts are forward-looking
 statements, including without limitation all statements regarding the
 agreement with Symphony Capital Partners, LP and its investors to provide
 $50 million of committed capital to advance Dynavax's ISS-based cancer,
 hepatitis B and hepatitis C therapeutic programs through clinical
 development; expectations that this agreement will build value in Dynavax's
 pipeline, accelerate the advancement of promising, early-stage development
 programs, will be minimally dilutive, reduce risk and provide a return on
 investment to shareholders; statements related to plans to advance its
 clinical programs in ragweed allergy, hepatitis B, hepatitis C and cancer
 and the commercial opportunities for those programs. Words such as
 "believes," "anticipates," "plans," "expects," "intend," "will," "slated,"
 "goal" and similar expressions are intended to identify forward-looking
 statements. The inclusion of forward-looking statements should not be
 regarded as a representation by Dynavax that any of its plans will be
 achieved. Actual results may differ materially from those set forth in this
 release due to the risks and uncertainties inherent in Dynavax's business
 including, without limitation, risks relating to: plans to advance its
 cancer, hepatitis B and hepatitis C programs into clinical development and
 the therapeutic and commercial potential of these programs; and other risks
 detailed in the "Risk Factors" section of Dynavax's Annual Report on Form
 10-K filed on March 16, 2006. You are cautioned not to place undue reliance
 on these forward-looking statements, which speak only as of the date
 hereof. All forward-looking statements are qualified in their entirety by
 this cautionary statement and Dynavax undertakes no obligation to revise or
 update this news release to reflect events or circumstances after the date

SOURCE Dynavax Technologies Corporation