Exelixis, GSK Conclude Successful Pact

Exelixis and GlaxoSmithKline will end their six-year collaboration based on its success, on October 27, 2008, as scheduled. Under the terms of the collaboration, GSK has the right to select two compounds for further development and commercialization. Exelixis will have the right to develop and commercialize compounds not selected by GSK. Exelixis’ exclusivity obligations will now be limited to the compounds selected by GSK. Exelixis will have the right to develop and commercialize any collaboration target or compound that does not infringe upon the intellectual property associated with compounds selected by GSK for further development and commercialization.
   
“This collaboration represents a successful alliance that has truly benefited both companies. With the selection of GSK089 (formerly XL880) and potentially one other compound, GSK has been able to strengthen its oncology pipeline. I am enthusiastic about the compounds remaining in the collaboration, and continue to be impressed by Exelixis’ quality of science and productivity,” said Paolo Poletti, M.D., senior vice president of the Oncology Medicines Development Center at GSK.
   
To date, Exelixis has received approximately $235 million from GSK, which includes upfront, milestone, and R&D support payments. If GSK selects a second compound, Exelixis will be entitled to receive an additional milestone payment of either $55 million or $27.5 million. Exelixis is eligible for development milestones and royalties on compounds selected for development and commercialization by GSK. Exelixis will pay GSK a small royalty on certain candidates not selected by GSK.