Exelixis Inc.

Exelixis Inc. announced that Genentech Inc. has exercised its option to further develop and commercialize Exelixis' compound XL518, a selective and potent inhibitor of MEK, which is currently in a phase 1 clinical trial. Under the terms of the collaboration agreement between the parties, Exelixis will continue to be responsible for the phase 1 clinical trial until the point that a maximum tolerated dose (MTD) is determined. After MTD is achieved, Genentech will be responsible for completing the phase 1 clinical trial and subsequent clinical development.
Under the terms of the collaboration agreement between Exelixis and Genentech, Exelixis received upfront and milestone payments totaling $40.0 million at the time the agreement was signed in January 2007.