Exelixis to Receive $140 Million Upfront Payment and Guaranteed Research
Funding
Sanofi-aventis (PARIS:SAN) and (NYSE:SNY) and Exelixis, Inc.
(Nasdaq:EXEL) today announced a global license agreement for XL147 and
XL765 and a broad collaboration for the discovery of inhibitors of
phosphoinositide-3 kinase (PI3K) for the treatment of cancer. Activation
of the PI3K pathway is a frequent event in human tumors, promoting cell
proliferation, survival and resistance to chemotherapy and radiotherapy.
Under the license, sanofi-aventis will have a worldwide exclusive
license to XL147 and XL765, which are currently in phase 1 and phase
1b/2 clinical trials, and will have sole responsibility for all
subsequent clinical, regulatory, commercial and manufacturing
activities. Exelixis will participate in conducting ongoing and
potential future clinical trials and manufacturing activities.
Under the discovery collaboration, Exelixis and sanofi-aventis will
combine efforts in establishing several pre-clinical PI3K programs and
jointly share responsibility for research and preclinical activities
related to isoform-selective inhibitors of PI3K. Sanofi-aventis will
have sole responsibility for all subsequent clinical, regulatory,
commercial and manufacturing activities of any products arising from the
collaboration; however, Exelixis may be responsible for conducting
certain clinical trials.
Sanofi-aventis will pay Exelixis aggregate upfront cash payments of $140
million under the license and collaboration. Exelixis will also receive
guaranteed research funding of $21 million over a three year research
term under the collaboration. For the license and the collaboration,
Exelixis will be eligible to receive development, regulatory and
commercial milestones of over $1 billion in the aggregate, as well as
royalties on sales of any products commercialized under the license or
collaboration.
“Sanofi-aventis has a track record of success in commercializing
innovative cancer therapies and is deeply committed to advancing the
care of cancer patients,” said George A. Scangos, Ph.D., president and
chief executive officer of Exelixis. “We believe that their expertise
and resources will enable us to move aggressively in advancing the
development of XL147 and XL765 and other potential PI3K inhibitors. The
data generated to date in the XL147 and XL765 clinical programs suggest
that these compounds may have utility in treating diverse cancers.
