"The GSK collaboration was critical to the development of Exelixis' world- class discovery group and our rapidly expanding clinical development group. Today, we have a pipeline of 11 compounds in clinical development, including XL184, which begins a phase 3 trial this summer," said George A. Scangos, president and chief executive officer of Exelixis. "This collaboration has been successful in that both companies have been able to share in the output of our discovery and development efforts and will be able to take forward multiple promising compounds with significant commercial potential in oncology. With the successful completion of the collaboration, we will have clarity regarding the exclusivity obligations under the GSK collaboration and ownership of the compounds in our pipeline."
To date, Exelixis has received approximately $235 million from GSK, which includes $150 million in upfront, milestone, and R&D support payments, and $85 million through a loan facility. Additionally, if GSK selects a second compound for further development, Exelixis will be entitled to receive an additional milestone payment of either $55 million or $27.5 million. The milestone will be due after the selected compound achieves proof-of-concept and will be creditable by GSK against amounts outstanding under the loan facility. Exelixis is eligible for development milestones and royalties on compounds selected for development and commercialization by GSK, which include XL880 and potentially one additional compound if GSK exercises its second development election. Exelixis will pay GSK a low, single-digit royalty on certain "Refused Candidates" that GSK elected not to choose with its development election which Exelixis thereafter successfully commercializes.
Background on Exelixis-GSK Collaboration
In October 2002, Exelixi
|SOURCE Exelixis, Inc.|
Copyright©2008 PR Newswire.
All rights reserved