Exelixis is partnering with Bristol-Myers Squibb to develop a new class of cholesterol-lowering drugs. In the deal, Exelixis will pocket $17.5 million up front with $10 million in each of the next two years for R&D efforts. The entire deal is worth up to $280 million in milestone payments for the successful commercial development of two new therapeutics. The program centers on hormone receptors called Liver X Receptors. Researchers believe that activating the receptors will trigger a response that lowers cholesterol.

"We have worked together productively in the past and we look forward to successfully combining our expertise in drug discovery and early biology with the proven capabilities of Bristol-Myers Squibb in developing and commercializing important therapies for cardiovascular disease," said George A. Scangos, Ph.D., president and CEO of Exelixis.

- read this AP report for more