PDL and Exelixis link up for oncology collaboration

Protein Design Labs and Exelixis have entered into a collaboration todiscover and develop humanized antibodies for the diagnosis, prevention and treatment of cancer. The project will utilize Exelixis' model organism genetics technology for the identification of new cancer drug targets, and PDL's antibody and clinical development expertise to develop new drug candidates, the firms said.

Under the terms of the agreement, PDL will provide Exelixis with $4 million in annual research funding for two or more years, and has purchased a $30 million note, convertible after the first year of the collaboration into shares of Exelixis common stock. George Scangos, Exelixis' chief executive, said the company is already in a position to deliver its first targets under the collaboration, adding that "this relationship is consistent with Exelixis' strategy of moving towards the market."