Yesterday, very few investors even knew about Dynavax Technologies Corp., but today the company received much attention after announcing a worldwide strategic alliance with GlaxoSmithKline (NYSE: GSK) to discover, develop and commercialize novel inhibitors of endosomal Toll-like Receptors (TLRs) to treat immuno-inflammatory diseases. As of Wednesday afternoon, the stock is up approximately 458% on 8.7 million traded shares.
Through the alliance, Dynavax will receive $10 million from GSK for the exchange of an exclusive option over four programs targeting autoimmune and inflammatory diseases such as lupus, psoriasis, and rheumatoid arthritis. According to the press release, Dynavax can receive future potential development and commercialization milestones totaling approximately $200 million per program. GSK has the exclusive option to license each program upon achievement of proof-of-concept or earlier depending on certain circumstances.
Dino Dina, M.D., President and Chief Executive Officer of Dynavax, commented, “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.”
Jose Carlos Gutierrez-Ramos, Ph.D., Senior Vice President and Head of the Immuno-Inflammation Centre of Excellence for Drug Discovery at GSK, stated, “We are committed to using our expertise, in collaboration with Dynavax, to research and develop new therapeutics that can improve the lives of patients with conditions like systemic lupus erythematosus, psoriasis and rheumatoid arthritis. Dynavax is a recognized pioneer in the scientific community for its innovation of endosomal TLR inhibitors which prevent immune signaling in autoimmune and inflammatory diseases.”
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