Exelixis gains on sanofi-aventis deal

Shares of Exelixis Inc. (NASDAQ:EXEL) rose $0.85 (19%) to $5.36 on Thursday after the biotech granted sanofi-aventis Group (Euronext:SAN; NYSE:SNY) exclusive, worldwide rights to XL147 and XL765. The oral phosphoinositide 3-kinase (PI3K) inhibitors are in Phase Ib/II testing to treat cancer. Exelixis will receive $140 million up front and $21 million in research funding over three years. The biotech also is eligible to receive more than $1 billion in milestones, plus royalties.

XL147 is in testing to treat solid tumors and non-small cell lung cancer (NSCLC). XL765 is an inhibitor of PI3K and mammalian target of rapamycin ( mTOR, FRAP, RAFT1) in testing to treat glioblastoma and NSCLC. It also is in Phase I testing for solid tumors. ...