Exelixis, Inc. (Nasdaq:
EXEL) entered into an agreement with
Genentech, Inc. (NYSE:
DNA) for the worldwide co-development of
XL518, a small-molecule inhibitor of MEK.
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.
The terms of agreement include the following:
- Exelixis will receive upfront and milestone payments totaling $40 million upon signing of the agreement and with the submission of the IND for XL518 to the FDA.
- Exelixis is responsible for developing XL518 through the end of Phase I. If Genentech exercises its option to further develop XL518, Exelixis will receive an additional payment and Genentech will be responsible for further development, including all further development costs.
- Exelixis has the option to co-promote in the United States along with Genentech.
- Exelixis has a substantial share in the marketing and commercialization costs, as well as an initial equal share in profits in the United States, which will decrease as sales increase.
- Exelixis will receive royalties on any sales of the product which may be commercialized outside the United States.
Find more details from the
press release.
The terms of agreement include the following: 
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