GSK to develop and market XL880

GlaxoSmithKline (GSK) has announced that it will exercise its options to develop and commercialise XL880, the anti-cancer C-Met inhibitor from Exelixis, through its Centre of Excellence for External Drug Discovery.

The company will exercise its exclusive license for XL880, a small molecule compound currently being investigated in phase II clinical trials in patients with papillary renal cell carcinoma, head and neck cancer and gastric cancer.

As a result of this decision, GSK will pay Exelixis a milestone fee of $35 million (17.2 million pounds), in addition to further payments upon certain development and marketing landmarks and a double-digit royalty percentage.

Paolo Paoletti, senior vice-president of the Oncology Medicines Development Centre at GSK, said: “The exercise of the XL880 option confirms GSK’s growing status as a world leader in the development of new oncology medicines for use in thetreatment, prevention and supportive care of cancer patients.”

He added that the decision underlines the company’s dedication to identifying compounds that can potentially be of genuine benefit to patients while enhancing the firm’s oncology pipeline.

In December 2006, Exelixis signed a global partnership agreement with Bristol-Myers Squibb for the discovery, development and marketing of cancer treatments.