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."

Amgen broke ground for the expansion of its Louisville, KY Distribution Center. The $38 million expansion and improvement project will add 27,000 sq. ft. to the existing building infrastructure and is scheduled for completion in 2007.

"The expansion of our Louisville Distribution Center will help enable Amgen to meet growing demand for our current marketed products and prepare for new medicines from our pipeline in the years ahead," said Dennis Fenton, Amgen executive vice president, operations. "We are proud of our Kentucky site and grateful to the area's elected federal, state and local officials and business community for supporting our operations."

Pablo J. Cagnoni, M.D. has been promoted to vice president and chief medical officer, OSI Pharmaceuticals, Inc. In this position, Dr. Cagnoni will oversee all of the clinical development and medical affairs activities of the company's oncology portfolio, which includes further development of Tarceva. Dr. Cagnoni has also been appointed as an officer of the corporation and will serve as a member of the company's executive management committee.

"Pablo has shown excellent leadership in managing Tarceva's development program as well as the company's oncology clinical operations during his tenure," stated Colin Goddard, chief executive officer of OSI Pharmaceuticals. "As the company continues to build a top-tier oncology franchise upon the success of Tarceva, Pablo's expertise in oncology will play an integral role in advancing innovative molecular targeted therapies within our pipeline."

Dr. Cagnoni has 20 years of clinical development experience in oncology in both biotechnology and academic settings. He previously served as vice president, clinical development and medical affairs at OSI. Before joining the company in 2004, Dr. Cagnoni was vice president of clinical development at Allos Therapeutics, where he headed the development organization and led the development of Efaproxyn and pralatrexate. Prior to that, Dr. Cagnoni was assistant professor of medicine in the Division of Oncology at the University of Colorado. Dr. Cagnoni has authored more than 50 publications, numerous book chapters and has lectured extensively in several areas related to clinical oncology and drug development.

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