Exelixis cancer drug may bring large payment from GSK

SAN FRANCISCO A new cancer drug might give Exelixis a huge income from its developmental partner GlaxoSmithKline, according to Bloomberg.com. The drug called XL880 blocks a molecular target known as MET that is involved in tumor growth and in supplying cancer cells with blood and nutrients.

Glaxo has asked Exelixis for preliminary test results on the drug and if the company chooses to proceed with large-scale clinical trials, Exelixis could see a payout of $70 million.

Exelixis is still trying to sell its first drug after Glaxo late last month declined to co-develop a lung-cancer treatment with them. "XL880 is the most advanced MET inhibitor in clinical development, and we and Glaxo are committed to building upon this partnership," said George Scangos, president and chief executive officer of Exelixis, in a statement.