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.

Previous articleXDx to Restructure
Next articleCovidien Licenses Rights to Depomed’s Delivery Technology for $4M Upfront