London-based GlaxoSmithKline Plc and U.S. biotechnology Dynavax Technologies Corp. announced a global agreement to develop First-in-class endosomal TLR inhibitors for autoimmune and inflammatory diseases.

Under the terms of the alliance GlaxoSmithKline and Dynanvax Technologies Corp. will discover, develop and commercialize novel inhibitors of endosomal Toll-like Receptors (TLRs) for the treatment of immune inflammatory diseases such as as lupus, psoriasis and rheumatoid arthritis.

Initially, Glaxo will pay Dynavax $10 million, receiving an exclusive option over four programs targeting autoimmune and inflammatory diseases. 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

Endosomal proteins Toll-like receptors have been linked to inflammation in animal studies.