GlaxoSmithKline, the world's second-largest pharmaceutical company by revenue, has formed a worldwide strategic alliance with Biotech firm Dynavax Technologies Corp. to discover, develop and commercialize novel inhibitors of endosomal toll-like receptors for the treatment of immuno-inflammatory diseases.

London-based GlaxoSmithKline stated in a release that Dynavax has tested its drug-discovery technology in animals and now will explore whether it has the same potential in human studies.

Under the deal, U.S. based Dynavax will give GSK an exclusive option on four programs focused on diseases including lupus, psoriasis and rheumatoid arthritis. 

According to official sources, the development and commercialization deal includes a $10 million upfront payment to Dynavax with future milestone payments worth up to $200 million. In 2007, the company had $14.1 million in revenue.