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Exelixis and GlaxoSmithKline Agree to Successfully Conclude Six-Year Discovery and Development Collaboration
Date:6/27/2008

s and GSK established a broad alliance to discover, develop, and commercialize novel therapeutics in the areas of vascular biology, inflammatory disease, and oncology. Under the agreement, Exelixis was required to deliver to GSK a number of small molecule compounds that met agreed-upon proof-of-concept criteria, and GSK had the option to select up to two of these compounds for further development, and worldwide commercialization.

In January 2005, the GSK agreement was amended to focus on 12 specific programs: XL647, XL999, XL784, XL880, XL820, XL844, XL184, XL281, XL418, XL228 and two earlier-stage programs, from which GSK had the right to make its development elections. Exelixis retains rights to collaboration compounds not selected by GSK, subject to payment to GSK of a low, single-digit royalty on certain "Refused Candidates" that GSK elects not to choose with its development election which Exelixis thereafter successfully commercializes. Under the amended agreement, GSK may pay selection milestones, additional development-related milestones, and double-digit royalties on product sales with respect to selected compounds. Exelixis has certain co-promotion rights in North America for compounds selected by GSK for further development.

In August 2007, GSK requested to initiate its review of XL880 before the compound reached proof-of-concept in phase 2 trials. Exelixis agreed to this request and submitted the data report to GSK in September 2007. In December 2007, GSK exercised its development option for XL880, triggering a $35 million selection milestone, which offset a milestone payment previously paid by GSK. GSK has the right to select one additional compound for development and commercialization from remaining programs in clinical development (XL184, XL281, XL228, XL820, and XL844) and if its election decision is made for a compound submitted during the development term, Exelixis would be owed a $55 million selection milestone, with the milestone cr
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SOURCE Exelixis, Inc.
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