Sanofi-Aventis enters 'broad collaboration' with Exelixis

SOUTH SAN FRANCISCO, Calif. A French drug maker and an American biotech company have signed an agreement to discover and develop cancer therapies.

Sanofi-Aventis and Exelixis announced Thursday a “broad collaboration” for the discovery of phosphoinositide 3-kinase inhibitors. Activation of PI3K often occurs in tumors, causing cells to proliferate and tumors to resist chemotherapy and radiotherapy.

The two companies also signed a global license agreement for the investigational compounds XL147 and XL765. Under the license, Sanofi-Aventis will have a worldwide exclusive license for the two compounds, currently in phase 1 and phase 1b and 2 clinical trials. Exelixis will participate in clinical trials and manufacturing.

Sanofi-Aventis will pay Exelixis up-front cash payments of $140 under the license and collaboration, as well as guaranteed research funding of $21 million over a three-year research term. Exelixis will also be eligible to receive development, regulatory and commercial milestones of more than $1 billion, as well as royalties.