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 US.
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 US and share those profits 50/50. Exelixis will be entitled to receive double-digit royalties on product sales outside of the US.
XL413 is the second compound selected by Bristol-Myers Squibb in this collaboration. Previously, in January 2008, Bristol-Myers Squibb exercised its option to select XL139, an inhibitor of the hedgehog signaling pathway, for further development and commercialization.
Francis Cuss, senior vice president of discovery and exploratory clinical research at Bristol-Myers Squibb, said: Providing innovative medicines to patients with cancer is central to our company’s mission. Cdc7 inhibition represents a novel approach to cancer treatment and we are pleased to add XL413 to our growing pipeline of cancer compounds, and to further expand our productive collaborations with Exelixis.