Action results in $20M milestone payment.
Bristol-Myers Squibb (BMS) has exercised its option to develop and commercialize Exelixis’ investigational new drug candidate XL413, a selective inhibitor of Cdc7. Under the terms of the collaboration agreement between the two companies, which became effective in January 2007, the selection of XL413 by Bristol-Myers Squibb entitles Exelixis to a milestone payment of $20 million.
In addition, Exelixis has exercised its option under the collaboration agreement to co-develop and co-commercialize XL413 in the U.S. Following the transfer of the XL413 development program, which is expected to occur promptly, Bristol-Myers Squibb will lead all global activities. The parties will co-develop and co-commercialize XL413 in the United States and share those profits 50/50. Exelixis will be entitled to receive double-digit royalties on product sales outside of the United States.
XL413 is the second compound selected by Bristol-Myers Squibb in this collaboration. In January, BMS exercised its option to select XL139, an inhibitor of the hedgehog signaling pathway, for further development and commercialization.
