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Exelixis to Receive Milestone Payment From Bristol-Myers Squibb for Achievement of Liver X Receptor Agonist Development Milestone
Date:11/29/2007

eclinical development. Bristol-Myers Squibb also has responsibility for clinical development, regulatory, manufacturing and sales/marketing activities for such compounds. At time of signing, Exelixis received a $17.5 million upfront payment and a commitment from Bristol-Myers Squibb to provide R&D funding of approximately $10 million per year for the initial two year period. Exelixis may also receive pre-specified development and regulatory milestones totaling approximately $140 million per product for up to two products from the collaboration, as well as sales milestones and royalties on sales of products commercialized under the collaboration.

In September 2007, Exelixis announced that the collaboration had been extended through January 12, 2009. Terms of the extension include additional research funding paid to Exelixis in the amount of $7.5 million. Bristol-Myers Squibb also has an option to further extend the collaboration by an additional year.

About the Liver X Receptor

LXR activation by endogenous ligands, oxysterols (oxidized cholesterol) or by synthetic agonists, initiates a cascade of cellular events that both increase "reverse cholesterol transport," thereby removing excess cholesterol from the body, and suppress inflammation. Elevated cholesterol concentrations have been implicated in the progression of heart disease and plaque formation in the artery wall. LXR activation therefore directly targets two well-known risk factors of heart disease and provides a novel approach for decreasing the deposition of fat and lipids in the artery wall and suppressing the inflammatory damage associated with atherosclerosis. In animal models of heart disease, small molecule synthetic LXR ligands have been shown to cause regression of pre-existing atherosclerotic lesions. Thus, LXR may be a first-in-class target for therapies that directly target the pathology of atherosclerosis and coronary artery disease via a dual mechanism of stimulating reverse
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SOURCE Exelixis, Inc.
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