Bristol-Myers Squibb, Exelixis to collaborate on two novel cancer molecules

12 December 2008

Bristol-Myers Squibb and development-stage biotechnology researcher Exelixis today announced a global collaboration covering two novel molecules for cancer with their associated development programs.

The two molecules are Exelixis' XL184, a small molecule inhibitor of MET, VEGFR2 and RET, which is currently in Phase III development for medullary thyroid cancer; and Exelixis' XL281, a small molecule inhibitor of RAF kinase, which is currently in Phase I development for the treatment of patients with advanced solid tumor malignancies.

Bristol-Myers Squibb will pay Exelixis an upfront cash payment of $195 million for the development and commercialisation rights for both programmes and to make additional license payments of $45 million in 2009.

The companies have agreed to co-develop XL184 and The clinical development of XL184 will be directed by a joint committee and Exelixis is expected to conduct a significant portion of clinical development activities through 2010.

Exelixis will have the option to co-promote XL184 in the US and the companies will share worldwide development costs and commercial profits on XL184 in the US. Exelixis will be eligible to receive sales performance milestones of up to $150 million and double-digit royalties on sales outside the United States.

Exelixis may opt out of the co-development of XL184, in which case it would be eligible to receive development and regulatory milestones of up to $295 million, double-digit royalties on XL184 product sales worldwide, and sales performance milestones.