Bristol-Myers Squibb has chosen to develop Exelixis' experimental cancer therapy XL413, triggering a $20 million milestone. That's the second $20 million payday that Exelixis has earned from BMS this year. In January BMS agreed to develop XL139, also for cancer.
South San Francisco-based Exelixis will co-market XL413 in the U.S. and will split U.S. profits evenly. The developer stands to earn double-digit royalties from sales outside of the U.S. That's all good news for Exelixis, which has seen its share price slide 70 percent this year.
XL413 is an inhibitor of Cdc7, which is required for DNA replication to proceed. Studies indicate that Cdc7 plays a role in regulation of cell cycle checkpoint control and protects tumor cells from apoptotic cell death during replication stress.
"To our knowledge, no other selective inhibitors of Cdc7 have advanced to this stage of preclinical development, giving XL413 the potential to become a first-in-class therapy," said Michael M. Morrissey, PhD, president of R&D at Exelixis. "
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