Exelixis and Ipsen amend cabozantinib agreement

US biotech firm Exelixis (Nasdaq: EXEL) and French drugmaker Ipsen (Euronext: IPN) today jointly announced an amendment to the exclusive collaboration and licensing agreement for the commercialization and continued development of cabozantinib, to include commercialization rights in Canada for Ipsen where Ipsen has an established business (Mississauga, Ontario).

Signed in February 2016, the original agreement gave Ipsen exclusive commercialization rights for current and potential future cabozantinib indications outside of the USA, Canada and Japan. Following the amendment, Exelixis maintains exclusive rights for cabozantinib in the USA and Japan, and is continuing discussions with potential partners for commercial rights in Japan.

Under the terms of the amendment, Exelixis will receive a $10 million upfront payment. Exelixis is eligible to receive regulatory milestones, for the approvals of cabozantinib in Canada for advanced renal cell carcinoma (RCC) after prior treatment, for first-line RCC, and advanced hepatocellular carcinoma (HCC), as well as additional regulatory milestones for potential further indications. In line with the prior transaction between the parties, the agreement also includes commercial milestones and provides for Exelixis to receive tiered royalties on Ipsen’s net sales of cabozantinib in Canada.