Glaxo, Dynavax forge drug research deal

NEW YORK (Reuters) - GlaxoSmithKline Plc said on Wednesday it will pay Dynavax Technologies Corp (DVAX.O) $10 million upfront and potential future large milestone payments in a research deal involving drugs to treat autoimmune and inflammatory diseases.

The companies said Dynavax has tested its drug-discovery technology in animals and now will explore whether it has the same potential in human studies.

Under the partnership, London-based Glaxo (GSK.L) will have an exclusive option over four research programs to be operated by Dynavax, in which Dynavax technology will be used to attempt discoveries of treatments for diseases such as lupus, psoriasis and rheumatoid arthritis.

"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," the companies said in a joint statement.

Under the deal, Dynavax will attempt to develop drugs that block proteins called endosomal Toll-like receptors that have been linked to inflammation in animal studies.

(Reporting by Ransdell Pierson; Editing by Andre Grenon)