$240 million for cancer drugs development
A relatively small San Francisco-based company called Excelixis Inc. is one of a few small biotech companies that will survive the financial crisis. Just a month ago they had to lay off 10% of their workforce, in order to be able to cope with the economy. However, they luck changed…
Although financial crisis doesn’t seem to go away any time soon and many biotech companies are in a turmoil, the big players seem to have no problems with finances.
The American pharmaceutical giant Bristol-Myers Squibb Co. has teamed up with biotech company Excelixis Inc. to develop 2 new experimental cancer drugs. The New York City-based company, Bristol-Myers Squibb Co., will hand out over $240 million to Exelixis according to the contract.
This move by BMS also shows that pharmaceutical companies are turning to bionanotechnology in order find a new approach and change their conventional line of drugs. In other words, they are trying to transform themselves into a biophrarmaceutical company.
Accoriding to the deal, BMS will pay Exelixis $195 million now, and $45 million in 2009. More money could come Exelixis’ way if the drug development ends up being successful. The two drugs’ code names are XL184 and XL281.
“We’re not looking to buy cheap,” said Jeremy Levin, vice president at BMS transaction group. “We’re looking to create value.”
The agreement between these two companies will be announced officially on Friday.
Source: online.wsj.com/article/SB122904558621500589.html?mod=googlenews_wsj
