Dynavax Technologies 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. Dynavax\'s clinical development programs are based on immunostimulatory sequences which are short DNA sequences that enhance the ability of the immune system to fight disease and control chronic inflammation. Dynavax Technologies Corp. has a market cap of $72.8 million; its shares were traded at around $1.82 with and P/S ratio of 2.
Highlight of Business Operations:Interest income is reported net of amortization of premiums and discounts on marketable securities and realized gains and losses on investments. Interest income was $0.2 million and $1.1 million for the six months ended June 30, 2009 and 2008, respectively. Interest income decreased by $1.0 million, or 86%, compared to the same period in 2008 due to lower investment balances and the decline in returns on our investment portfolio resulting from current market conditions.
Interest expense includes amortization of deferred transaction costs and commitment fees related to the Deerfield financing agreement and miscellaneous banking fees. Interest expense was $27 thousand and $2.7 million for the six months ended June 30, 2009 and 2008, respectively. Interest expense decreased by $2.7 million, or 99%, compared to the same period in 2008 due to interest expense incurred from the commitment fees and warrants issued under the Deerfield financing agreement, which was terminated in August 2008.
Other income (expense) includes gains and losses on foreign currency translation of our activities primarily with Dynavax Europe and gains and losses on disposals of property and equipment. We reported $0.1 million of other expense and $0.2 million of other income for the six months ended June 30, 2009 and 2008, respectively. The variance year over year resulted from the effect of Euro to U.S. Dollar exchange rates.
Cash used in operating activities was $15.4 million during the six months ended June 30, 2009 compared to $23.0 million for the same period in 2008. The decrease in cash usage compared to the prior year was due primarily to our net income as compared to our net loss for the same period in 2008.
Cash provided by investing activities was $11.0 million during the six months ended June 30, 2009 compared to $21.4 million for the same period in 2008. The decrease was attributed to the decline in net proceeds from sales and maturities of marketable securities.
Cash provided by financing activities was $41 thousand during the six months ended June 30, 2009 compared to $2.1 million for the same period in 2008. The decrease was primarily attributed to the termination of the Deerfield financing agreement.
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