Exelixis in deal with B-MS worth over $240M

Drug major Bristol-Myers Squibb has entered a global collaboration with fellow USA-based Exelixis worth at least $240.0 million to the latter covering two novel molecules for cancer with their associated development programs. These are Exelixis' XL184, a small-molecule inhibitor of MET, vascular endothelial growth factor receptor 2 and RET, which is currently in Phase III development for medullary thyroid cancer; and XL281, a small-molecule inhibitor of RAF kinase, which is currently in Phase I development for the treatment of patients with advanced solid tumor malignancies.

Upfront $195M sees Exelixis' shares rocket

Under the terms of the collaboration, B-MS has agreed to pay Exelixis an upfront cash payment of $195.0 million for the development and commercialization rights to both programs and also to make additional license payments of $45.0 million in 2009. News of the deal, on December 12, saw the biotechnology firm's share price leap nearly 33% to $4.95, and the drug major's stock also advanced, rising 4.9% to $22.51.