Dynavax ($DVAX) is looking to preserve its cash position among the market turmoil. The company is taking a number of steps for this purpose. Dynavax plans to consolidate its position by focusing on developing immune-oncology treatments instead of pursuing projects in different areas.
Dynavax reported that It will halt producing its hepatitis B vaccine candidate HEPLISAV-B. It will help the company in reducing its cash burn rate. The company said that in the future, the costs incurred with regard to HEPLISAV-B are likely to be less than $1 million per month. It also plans to address the issues stated the CR letter received by it from the FDA. The CRL was released by the FDA in November.
The company is also looking to slash its headcount for cutting costs. Dynavax may reduce its global workforce by 38%. The restructuring charges related to the retrenchment are likely to be close to $3 million. The company plans to book the major portion of these expenses. Overall, all these measures are expected to reduce cash burn by nearly 40%.
Dynavax plans to focus on oncology treatments as its lead oncology candidate is SD-101, an intratumoral TLR9 agonist, in early/mid-stage development. The treatment is developed for treating solid tumors and blood cancers. The company is looking to keep its oncology related operating expenses close to $60 million per annum.