Dynavax to Initiate Phase 1 Studies For TLR-9 Agonist For Asthma
Dynavax Technologies Corporation (NASDAQ: DVAX) announced today that it will advance AZD1419, a proprietary second-generation TLR-9 agonist for asthma, into Phase 1 clinical studies. Development expenses will be fully funded by AstraZeneca under the terms of a collaboration announced in 2006, and Dynavax expects to receive an advance payment of $6 million in the fourth quarter of 2012. Dynavax anticipates the Phase 1 studies will begin in the first half of 2013.
AZD1419 has been selected to enter formal clinical development based on extensive preclinical studies conducted by Dynavax and AstraZeneca. Under the terms of a previously-announced research collaboration and license agreement, AstraZeneca will provide to Dynavax approximately $20 million in payments to cover the cost of clinical development activities through Phase 2a. If AstraZeneca chooses to advance the program following completion of Phase 2a, Dynavax will receive a $20 million milestone payment, and AstraZeneca will retain its rights to develop the candidate therapy and to commercialize the resulting asthma product. Additional remaining milestone payments to Dynavax amount to approximately $100 million. Dynavax will receive royalties on worldwide sales of approved products and will have the opportunity to co-promote the product in the United States.
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