To Discover and Develop Novel Therapeutics
SOUTH SAN FRANCISCO, Calif., and LONDON, Oct. 28 /PRNewswire-FirstCall/ --
Exelixis, Inc. (Nasdaq: EXEL) and GlaxoSmithKline plc (LSE & NYSE: GSK)
announce that they will form a broad alliance to discover, develop and
commercialize novel therapeutics in the areas of vascular biology,
inflammatory disease and oncology.
The alliance combines Exelixis' powerful gene-to-drug discovery platform
and GSK's strengths in development and commercialization by means of an
innovative model for sharing risks and potential rewards in a research and
Under the terms of the agreement, Exelixis will have responsibility for
the delivery to GSK of an undisclosed number of small-molecule compounds that
have met agreed-upon criteria in early Phase II clinical testing. GSK will
have the right to further develop these compounds and exclusive, worldwide
commercialization and manufacturing rights. Exelixis retains co-promotion
rights in North America.
GSK will make an upfront payment of $30 million to Exelixis. GSK will
also initially acquire two million newly issued shares of Exelixis common
stock at $7 per share, which represents a premium of approximately 100% to the
current stock price. Exelixis has the option to sell GSK additional shares at
a specified time in the future.
Over the initial six years of the agreement, GSK will provide Exelixis
with a minimum of $90 million in development funding. Exelixis will receive
clinical and regulatory milestone payments based on the number and timing of
compounds reaching specified points of progression. Based on the continued
successful development of these compounds, these payments could range from
$220 million to $350 million up to and including first commercialization. In
addition, GSK will make available a loan facility to Exelixis of up to $85
million. Exelixis will also receive sales-based milestone payments and
royalties on product sales.
Two years from the start of the collaboration, GSK and Exelixis may elect
to expand the collaboration, and under this option, Exelixis' milestone
payments could double in size, and the development funding and the loan
facility would also be significantly expanded.
"For GlaxoSmithKline this alliance promises to complement our own
accelerating drug-discovery activities by gaining access to the expanding
array of capabilities which Exelixis has assembled rapidly in recent years,"
said Tadataka Yamada, M.D., Chairman, Research & Development, GSK. "Success
for this innovative alliance will be not just the identification of targets
and lead compounds but also the delivery of drugs that have demonstrated a
therapeutic concept and shown promise for continuing development. We look
forward to working with an accomplished partner like Exelixis to shape a
"The breadth and depth of this collaboration utilizes the full strength
and productivity of our proprietary gene-to-drug discovery and development
platform," said George A. Scangos, Ph.D., Exelixis President and Chief
Executive Officer. "The unique collaborative and financial structure of this
alliance ensures that our companies will benefit from each others' efforts,
work diligently together to select and advance the most promising drug
candidates, and share mutually in the benefits of our successes. This
collaboration is an extraordinary opportunity for us to work with GSK, one of
the world's leading pharmaceutical companies, to fulfill our shared goal of
delivering important new medicines to patients. Having made the critical
strategic decision three years ago to build Exelixis from a genomics platform
company into a mature drug discovery and development company, this
collaboration is a landmark achievement for our company."
Exelixis will conduct a webcast conference call to discuss this alliance
on Monday, October 28, 2002 at 5:00 pm ET. To participate over the Internet,
go to www.exelixis.com/ir and click on the Corporate Collaboration icon or go
to www.ccbn.com. A replay of this webcast will be available for 14 days.
Exelixis, Inc. is a leading genomics-based drug discovery company
dedicated to the discovery and development of novel therapeutics, with a focus
in the area of oncology. The company is leveraging its fully integrated gene-to-drug platform to fuel the growth of its proprietary drug pipeline.
Exelixis has established broad corporate alliances with major pharmaceutical
and biotechnology companies, including GlaxoSmithKline, Bristol-Myers Squibb,
and Protein Design Labs. The company has also established agricultural
research collaborations with Bayer CropScience and Dow Agrosciences. Other
partners include Merck, Schering-Plough Research Institute, Cytokinetics and
Scios. Exelixis' worldwide leadership in comparative genomics and model system
genetics is being supported in large part through zebrafish and mouse model
systems work carried out at its German subsidiaries Exelixis Deutschland GmbH
and Artemis Pharmaceuticals GmbH. For more information, please visit the
company's web site at www.exelixis.com.
GlaxoSmithKline, one of the world's leading research-based pharmaceutical
and healthcare companies, is committed to improving the quality of human life
by enabling people to do more, feel better and live longer. For more
information, please visit the company's web site at www.gsk.com.
The forward looking statements contained in this press release involve
risks and uncertainties that may affect Exelixis, as more fully discussed in
the "Risk Factors" section of our filing with the U.S. Securities and Exchange
Commission. Exelixis' actual results and the timing of events could differ
materially from those anticipated in its forward-looking statements as a
result of many factors, including Exelixis' ability to successfully identify
and deliver compounds meeting the criteria for acceptance by GlaxoSmithKline
under the terms of the collaboration and, even if compounds are accepted for
further development, to receive milestones and royalties as a result of the
development efforts of GlaxoSmithKline with respect to those products. These
and other risk factors are discussed under "Risk Factors" and elsewhere in
Exelixis' Annual Report on Form 10-K for the year ended December 31, 2001 and
other SEC reports. Exelixis expressly disclaims any obligation or undertaking
to release publicly any updates or revisions to any forward-looking statements
contained herein to reflect any change in its expectations with regard thereto
or any change in events, conditions or circumstances on which any such
statements are based.
Under the safe harbor provisions of the US Private Securities Litigation
Reform Act of 1995, GlaxoSmithKline cautions investors that any forward-looking statements or projections made by GSK, including those made in this
announcement, are subject to risks and uncertainties that may cause actual
results to differ materially from those projected. Factors that may affect
the Group's operations are described under Risk Factors in the Operating and
Financial Review and Prospects in GlaxoSmithKline's Annual Report on Form 20-F
Exelixis and the Exelixis logo are registered U.S. trademarks.
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SOURCE Exelixis, Inc.
/CONTACT: Jane M. Green, Ph.D., VP, Corporate Communications, of
Exelixis, +1-650-837-7579 or jmgreen@Exelixis.com; or UK Media, Martin Sutton,
+44 20 8047 5502, Alan Chandler, +44 20 8047 5502, Siobhan Lavelle,
+44 20 8047 5502, US Media, Nancy Pekarek, +1-215-751-7709, Mary Anne Rhyne,
+1-919-483-2839, or Patricia Seif, +1-215-751 4390, European Analyst/Investor,
Duncan Learmouth, +44 20 8047 5540, Philip Thomson, +44 20 8047 5543, or Joan
Toohill, +44 20 8047 5542, or, US Analyst/Investor, Frank Murdolo,
+1-215-751-7002, or Tom Curry, +1-215-751-5419, all of GlaxoSmithKline/
/Web site: http://www.gsk.com /
/Web site: http://www.exelixis.com /
CO: Exelixis, Inc.; GlaxoSmithKline plc
ST: California, England, Pennsylvania
IN: MTC BIO HEA
SU: JVN CCA
-0- Oct/28/2002 21:01 GMT
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