Exelixis says GSK drug research deal to end

24 October 2008

Biotechnology company Exelixis Incyesterday said that its six-year collaboration with GlaxoSmithKline to discover and develop oncology compounds has ended with GSK having decided againnst exercising its option to license the compounds, developed under this collaboration.

According to Exelixis, GSK informed it that it would not to license XL184, XL281, XL228, XL820, and XL844, leaving Exelixis free to develop, commercialise, and / or license all of the compounds, subject to payment of a 3-per cent royalty to GSK on the net sales of any product incorporating XL184.

As a result of the conclusion of the collaboration, Exelixis said its exclusivity obligations will be limited to the compounds selected by GSK.

Exelixis and GSK had established a broad alliance to discover, develop, and commercialise novel therapeutics in the areas of vascular biology, inflammatory disease, and oncology in October 2002. Exelixis has strategic corporate alliances with major pharmaceutical and biotechnology companies, including GlaxoSmithKline, Bristol-Myers Squibb, Genentech, Wyeth Pharmaceuticals, and Daiichi-Sankyo.

Under the terms of the collaboration, Exelixis was required to deliver to GSK a number of small molecule compounds that met agreed-upon proof-of-concept criteria, and GSK had the right to select up to two of the compounds for further development and commercialisation.

GSK previously selected XL880, and it has now decided not to select any of the compounds remaining in the collaboration: XL184, XL281, XL228, XL820, and XL844. Exelixis and GSK will bring their six-year collaboration to a successful conclusion on 27 October 2008, as scheduled.