As Dynavax nearing to prepare MKT agreement with GSK prior to HEPLISAV
get approved!!

Over 350 million individuals worldwide are chronically infected with
HBV, which can lead to cirrhosis of the liver and liver cancer. We
estimate the current worldwide market for HBV therapeutics is over $1
billion annually.

Currently approved HBV therapies consists of lengthy treatment with
antiviral medication or interferon-alpha. These therapies may cause
significant side effects, can lead to resistance, and do not always
cure HBV.

Our HBV therapy, used in combination with existing antiviral
therapies, is expected to induce a potent immune response against HBV-
infected cells in the liver to eradicate HBV infection and may offer a
more effective therapeutic option for chronically infected patients.

Dynavax and GlaxoSmithKline have entered into a worldwide strategic
alliance to discover, develop, and commercialize novel TLR inhibitors
for diseases such as lupus, psoriasis, and rheumatoid arthritis. We
will conduct research and early clinical development in up to four
programs and are eligible to receive future potential development and
commercialization milestones totaling approximately $200 million per
program. GSK can exercise its exclusive option to license each
program upon achievement of proof-of-concept or earlier upon certain
circumstances. After exercising its option, GSK will carry out
further development and commercialization of these products. We will
receive tiered, up to double-digit royalties on sales and have
retained an option to co-develop and co-promote one product.

Human viral influenza is an acute respiratory disease with high
morbidity and mortality that occurs in annual epidemics worldwide.
There are an estimated 30,000 to 40,000 viral influenza-associated
deaths per year in the United States, primarily in those over 65 years
of age. Influenza pandemics occur infrequently, on average every 30 to
40 years, but the next pandemic could result in millions of deaths
worldwide. Analysts estimate the current worldwide market opportunity
for seasonal influenza vaccines to be approximately $3 billion
annually.

Standard flu vaccines can provide protection against the influenza
strains predicted to be prevalent during a season. The efficacy of
these vaccines is often decreased by unpredictable changes in the
actual strains causing influenza. Current vaccines are also least
effective in those who need prevention the most, the elderly and
others with weaker immune systems. Pandemic vaccination is further
complicated by the need to produce large quantities of vaccine in a
short time period.

Our Universal Flu vaccine is designed to offer protection against
divergent influenza strains, increase the efficacy of standard
vaccines, and potentially reduce the dose of vaccine to extend the
quantity available during a pandemic.

Our research and development program has been partially funded by
grants from the National Institutes of Health (NIH). Dynavax has
established a worldwide supply and option agreement with Novartis
Vaccines and Diagnostics, Inc. for our Universal Flu vaccine program.