Exelixis/GSK conclude six-year accord

UK pharmaceutical major GlaxoSmithKline and US biotechnology firm Exelixis say they will bring their six-year collaboration to a successful conclusion on October 27, as scheduled. Under the terms of the collaboration, GSK has the right to select up to two of the compounds in the collaboration for further development and commercialization.

The world's number two drugmaker previously selected XL880 and will be able to choose one additional compound from among XL184, XL281, XL228, XL820, and XL844. Exelixis will have the right to develop and commercialize compounds not selected by GSK, either alone or with partners. As a result of the conclusion of the collaboration, Exelixis' exclusivity obligations will be limited to the compounds selected by GSK. The US firm will have the right to perform additional discovery, development and commercialization efforts against any collaboration target or compound that does not infringe upon the intellectual property associated with compounds selected by GSK for further development and commercialization.

To date, Exelixis has gained $235.0 million from the collaboration with GSK and could get a further $55.0 million or $27.5 million if the drug major selects another compound for further development.