Exelixis signs $80M R&D accord with B-MS

US drugmakers Exelixis and Bristol-Myers Squibb have entered into a worldwide collaboration to discover, develop and commercialize novel targeted therapies for the treatment of cancer. Under the terms of the deal, which will become effective upon antitrust clearance, Exelixis will deploy its drug discovery platform and be fully responsible for the identification and preclinical development of small-molecule drug candidates against mutually selected targets, while B-MS will have the right to select up to three Investigational New Drug candidates against three different targets.

As part of the deal, Exelixis will receive an upfront payment of $60.0 million in cash, as well as $20.0 million for each of up to three different drug candidates selected as INDs, as well as royalties on ex-US product sales. The parties plan to share development costs equally, profits and co-promotion responsibilities in the USA.