Exelixis inks $120M development pact with BMS

Exelixis is gaining a $60 million up front fee from Bristol-Myers Squibb in a pact to develop new cancer therapies. Exelixis is responsible for selecting small molecule drugs for specific targets while BMS has the right to choose up to three candidates for three targets. Exelixis will also get $20 million for each drug BMS selects. The two companies have agreed to share development costs, profits and marketing in the U.S. But Exelixis also has an opt-out agreement that would provide a schedule of milestones and royalty payments in lieu of profits.

"This collaboration will capitalize on the power of Exelixis' drug discovery engine and on the breadth and depth of BMS' expertise in oncology," said George A. Scangos, Ph.D., president and CEO of Exelixis.

- check out the release for more information
- here's the AFX report on the development deal

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