Exelixis, Inc. and Bristol-Myers Squibb have entered into a worldwide collaboration to discover, develop and commercialize novel targeted therapies for the treatment of cancer.
Under the collaboration, Exelixis will use its drug discovery platform for the identification and preclinical development of small molecule drug candidates directed against mutually selected targets. BMS will have the right to select as many as three IND candidates against three different targets. BMS will then lead all global activities and the two companies will co-develop and co-commercialize the programs in the U.S.
Under the terms of the agreement, BMS will make an upfront payment of $60 million in cash and Exelixis will also receive $20 million for each of the drug candidates selected by BMS as INDs. Exelixis will also receive royalties on product sales outside of the U.S. For each program selected by BMS, Exelixis may opt out of the co-development or co-promotion in the U.S., in which case Exelixis would receive milestones and royalties in lieu of a U.S. profit share.
"We are very pleased to collaborate with BMS on the discovery and development of novel treatments for cancer," said George A. Scangos, Ph.D., president and chief executive officer of Exelixis. "This collaboration will capitalize on the power of Exelixis' drug discovery engine and on the breadth and depth of BMS' expertise in oncology. We have had excellent, productive collaborations with BMS in oncology since 2000, and I am confident that this new collaboration will build on this excellent relationship and on the knowledge that we have generated during those years."