Sanofi, Exelixis in Cancer Drug License Deal

Sanofi-Aventis (SNY Quote) will pay Exelixis(EXEL Quote) upfront fees of $141 million in a license agreement for several cancer drugs.

Exelixis, of South San Francisco, also will receive research funding of $21 million over three years. Exelixis could receive a total of $1 billion, as well as royalties from sales of any products commercialized during the collaboration, the companies said in a statement Thursday.

Sanofi, the French drugmaker, will get the global license rights to XL147 and XL765, both of which are in phase I trials. The companies also will collaborate for the discovery of inhibitors of phosphoinositide-3 kinase for the treatment of cancer.

Under the agreement, Sanofi will have sole responsibility for all subsequent clinical, regulatory, commercial and manufacturing activities. Exelixis will participate in conducting ongoing and potential future clinical trials.