Dynavax regains AIC rights from UCB

Dynavax Technologies and UCB Farchim will end their development and commercialization collaboration in seasonal allergy products.

The current ongoing Phase II/III clinical trial of Dynavax's AIC immunotherapy for ragweed allergy will be completed as planned, with Dynavax assuming financial responsibility for all further clinical, regulatory, manufacturing, and commercial activities. The companies have agreed that, after these trials, returning full rights to Dynavax is a mutually beneficial resolution of the original collaboration.

'We are happy that our two companies have been able to end the collaboration reasonably and amicably,' said Dino Dina, managing director, president and ceo, Dynavax. 'This partnership has advanced our AIC ragweed programme to the point where we can proceed actively toward initiating a pivotal Phase III programme.'

In February 2004, Dynavax and UCB established a strategic partnering agreement for the development and commercialization of seasonal allergy products. In December 2004, Dynavax was informed that UCB was reviewing its commitment to the collaboration, and stated that should UCB opt to exercise its contractual right to return the allergy program to Dynavax, the company would pursue the ongoing development of AIC independently.

While specific details of the agreement are not being disclosed, Dynavax anticipates that the financial impact of the agreement in 2005 will be to accelerate recognition of anticipated fiscal 2005 collaboration revenue in the first quarter of 2005. In addition, the company anticipates a one-time, non-cash increase in revenue for the same period due to the recognition of deferred revenue from an upfront payment made in 2004.

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T +1 510 665 4630 jgreen@dvax.com