on Thursday announced a drug collaboration with
as well as a wider-than-expected third-quarter loss.
The companies are teaming up on hepatitis B vaccine Heplisav, which is in a phase III trial for adults and patients on dialysis. According to the license and development agreement, Dynavax will get an initial payment of $31.5 million with the potential for $105 million more in sales and development milestones and royalties. Merck will receive worldwide exclusive rights to the vaccine, and will fund its future development and commercialization.
Separately, Dynavax reported a loss of $17.1 million, or 43 cents a share in the third quarter, wider than the loss of $12.2 million, or 40 cents a share, it reported in the year-ago quarter. Revenue was $1 million, down from $1.7 million in the year-ago quarter.
Analysts surveyed by Thomson Financial predicted a loss of 37 cents a share, on revenue of $7.4 million.
Dynavax shares rose 33 cents, or 6.6%, to $5.33 in recent trading Thursday, while Merck was down a slight 38 cents, or 0.7%, at $57.88.