QDIS Blog

Well, the New Year finds even more deals being made. In this case it is between Exelixis and Genetech. Genentech will license the rights to XL518, a small molecule to be to treat cancer from Exelixis for an upfront payment of $40 million. Exelixis has already filed an IND for this molecule. Exelixis is responsible for development through phase I. At that point, Genetech has the option to take over development and then Exelixis will received further payment which were not disclosed.

PharmaLive: Exelixis Signs Co-Development Agreement With Genentech for Small Molecule Oncology Compound :

Here is the main point from the article on how exactly the molecule is suppose to work.

MEK, also known as mitogen activated protein kinase (MAPK) kinase, is a key component of the RAS/RAF/MEK/ERK pathway, which is frequently activated in human tumors. Inappropriate activation of the MEK/ERK pathway can promote cell growth in the absence of exogenous growth factors.

This appears to be a good deal for both parties. Exelixis gets upfront money and has certain responsibilities with a potential upside. Genetech gets the rights to a promising drug without a major commitment and can see how the phase I goes and make a decision later on.

Another good blog post on this is Exelixis is like butter…..

Other Resources

Exelixis Announces January 3 Webcast Discussion of Its Co-Development Agreement With Genentech for Small Molecule Oncology Compound
XL518 - Yahoo! Search Results
XL518 - Google Search
Google Blog Search: XL518

Technorati Tags: Exelixis, Genentech, pharmaceutical deals, XL518

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