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GlaxoSmithKline and Dynavax Announce Worldwide Strategic Alliance : – Developing First-in-Class Endosomal TLR Inhibitors for Autoimmune and Inflammatory Diseases –
Date:12/17/2008

GlaxoSmithKline (LSE:GSK) (NYSE:GSK) and Dynavax Technologies Corporation (NASDAQ:DVAX) today announced a worldwide strategic alliance to discover, develop and commercialize novel inhibitors of endosomal Toll-like Receptors (TLRs) for the treatment of immuno-inflammatory diseases. TLRs are key receptors of the innate immune system that can induce strong inflammatory responses.

LONDON & PHILADELPHIA & BERKELEY, Calif. (Business Wire EON) December 17, 2008 -- Under the terms of the alliance, Dynavax will receive an initial payment of $10 million for which GSK will receive an exclusive option over four programs targeting autoimmune and inflammatory diseases such as lupus, psoriasis, and rheumatoid arthritis.

"Our alliance with GSK provides an opportunity to create an entirely new product franchise for Dynavax," commented Dino Dina, M.D., President and Chief Executive Officer of 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."

Dynavax 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 pioneered a new approach to treating
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 GlaxoSmithKline and Dynavax Announce Worldwide Strategic Alliance :  – Developing First-in-Class Endosomal TLR Inhibitors for Autoimmune and Inflammatory Diseases – 
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