Bristol-Myers Squibb has exercised its option to develop and commercialize Exelixis Inc.’s IND candidate XL413, a selective inhibitor of Cdc7 targeting cancer cells. Under the terms of the collaboration agreement, BMS’ selection of XL413 entitles Exelixis to a milestone payment of $20 million. In addition, Exelixis has exercised its option to co-develop and co-commercialize the drug in the U.S. Following the transfer of the development program BMS will lead all global activities. The parties will co-develop and co-commercialize XL413 in the U.S. and share those profits 50/50. Exelixis will be entitled to receive royalties on product sales outside of the U.S.
   
“To our knowledge, no other selective inhibitors of Cdc7 have advanced to this stage of preclinical development, giving XL413 the potential to become a first-in-class therapy,” said Michael M. Morrissey, Ph.D., president of R&D at Exelixis. “Our colleagues at Bristol-Myers Squibb have substantial expertise in developing and commercializing innovative cancer therapies, and we are excited to have another opportunity to work with them.”
   
“Providing innovative medicines to patients with cancer is central to our company’s mission,” said Francis Cuss, senior vice president, Discovery and Exploratory Clinical Research, BMS. “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.”