Exelixis: Genentech exercises option to develop cancer drug

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Exelixis Inc has announced that Genentech Inc  has exercised the option to further develop and market Exelixis' experimental cancer drug XL518, which is currently in an early stage trial.

Exelixis Inc has announced that Genentech Inc  has exercised the option to further develop and market Exelixis' experimental cancer drug XL518, which is currently in an early stage trial.

Exelixis said it received upfront and milestone payments of $40.0 million when the agreement was signed in January 2007. Selection of the compound and opt-in by Genentech triggers a payment of $3.0 million and another $7.0 million is due when a mid-stage program is initiated by Genentech.

According to the agreement, Exelixis will be responsible for the first-stage clinical trial till the maximum tolerated dose is determined after which, Genentech will be responsible for completing the early stage trial and subsequent clinical development.