Sanofi-Aventis in deal with Exelixis which could earn the latter $1 billion

Leading French pharmaceutical firm Sanofi-Aventis has struck a deal with California, USA-based biotechnology company Exelixis for global license  to XL147 and XL765 and a broad collaboration for the discovery of  inhibitors of phosphoinositide-3 kinase (PI3K) for the treatment of  cancer.

Sanofi-Aventis will pay Exelixis aggregate upfront cash $140.0 million  under the license and collaboration element of the deal. The latter  will also receive guaranteed research funding of $21.0 million over a  three-year research term under the accord. For its part, Exelixis will  be eligible to receive development, regulatory and commercial  milestones of over $1.0 billion in total, as well as royalties on sales  of any products commercialized under the license or collaboration.

Excitement about the compounds