GlaxoSmithKline and Dynavax form alliance

Under the terms of the alliance, Dynavax will receive an initial payment of $10 million for which GlaxoSmithKline (GSK) will receive an exclusive option over four programs targeting autoimmune and inflammatory diseases such as lupus, psoriasis, and rheumatoid arthritis.

According to Dynavax, it is to conduct research and early clinical development in up to four programs and is eligible to receive future potential development and commercialization milestones totaling approximately $200 million per program. GSK can exercise its exclusive option to license each program upon achievement of proof-of-concept or earlier upon certain circumstances.

After exercising its option, GSK will carry out further development and commercialization of these products. Dynavax will receive tiered, up to double-digit royalties on sales and has retained an option to co-develop and co-promote one specified product.

Dynavax has adopted a new approach to treating autoimmune and inflammatory diseases with its oligonucleotide-based endosomal toll-like receptor (TLR) inhibitors, called immunoregulatory sequences. Dynavax’s lead inhibitor drug candidate, DV1079, is a bifunctional inhibitor of TLR7 and TLR9, and is expected to enter clinical development in the fourth quarter of 2009.

Dino Dina, president and CEO of Dynavax, said: “Our alliance with GSK provides an opportunity to create an entirely new product franchise for Dynavax. Our TLR inhibitors have the potential to create significant value for our newest collaborator GSK as well as for our stockholders. Alliances with major pharmaceutical companies have enabled Dynavax to establish a diverse pipeline of innovative products, while contributing valuable cash for our programs.”