Exelixis' S1P1 deal with BU could earn $354M

California, USA-based Exelixis has established an exclusive, global collaboration with privately-held German drug major Boehringer  Ingelheim, aiming to discover, develop and commercialize autoimmune  disease therapies. The accord is focused on the discovery of  sphingosine-1-phosphate type 1 receptor (S1P1) agonists. The S1P1  receptor is a central mediator of multiple pathways implicated in a  variety of autoimmune diseases.

Under the terms of the agreement, Exelixis will receive a $15.0-million  upfront payment. In addition, the firm will potentially earn up to  $339.0 million in milestones, depending on the successful achievement of  development, regulatory and commercial program goals and royalties on  sales of potential products commercialized.  The two companies will  share responsibility for discovery activities and Boehringer Ingelheim  will have sole control over all subsequent preclinical, clinical,  regulatory, commercial and manufacturing activities.

George Scangos, chief executive of Exelixis, commented: "our S1P1  agonist program has identified multiple analogs with potent in vivo  activity. With this collaboration, we have the opportunity to  transition the program to a partner with a track record of success in  developing and commercializing autoimmune disease therapies while  strengthening our financial position."