Exelixis and BMS sign collaboration in oncology

Biotech company Exelixis of San Francisco, US and Bristol-Myers Squibb (BMS) have agreed a worldwide collaboration to develop and commercialise novel targeted therapies for the treatment of cancer.

Exelixis will deploy its drug discovery platform and be fully responsible for the identification and pre-clinical development of small molecule drug candidates directed against mutually selected targets.

BMS will have the right to select up to three Investigational New Drug (INDs) candidates against three different targets. Following selection by BMS, the company will lead all global activities, although the parties will co-develop and co-commercialise the programs in the US.

BMS will pay Exelixis an upfront payment of $60 m in cash as well as $20 m for each drug candidate selected at IND. The parties plan to share development costs, commercial profits and co-promotion responsibilities in the US equally. Exelixis will also receive royalties on product sales outside of the US.

For each program selected by BMS, Exelixis may opt out of the co-development or co-promotion in the US, in which case Exelixis would receive milestones and royalties in lieu of a US profit share.