Under the terms of the collaboration between Exelixis and GlaxoSmithKline (GSK) initiated in October 2002 and amended in January 2005, GSK’s selection of XL880 entitles Exelixis to a selection milestone of $35 million and additional payments upon the attainment of specific development and commercialization milestones.
The $35 million selection milestone will be applied to repayment of an advance that GSK paid to Exelixis in 2005. Exelixis is also entitled to receive double-digit royalties on product sales if the compound is approved for marketing and commercialized. Exelixis will have certain co-promotion rights to XL880 in North America.
The collaboration between Exelixis and GSK, which is managed by GSK’s Center of Excellence for External Drug Discovery, covers seven compounds and their back-up and follow-up compounds currently in the Exelixis development pipeline.