Exelixis-BioInvent Establish Immuno-Oncology Pact

Exelixis Inc EXEL and BioInvent International AB BOVNF have entered into an option and license agreement focused on identifying and developing novel antibodies for use in immuno-oncology therapeutics.
Exelixis will pay BioInvent an upfront fee of $25 million in exchange for rights to select three targets identified using BioInvent's proprietary F.I.R.S.T platform and n-CoDeR library.
BioInvent will be responsible for initial target and antibody discovery activities and characterization of antibody mechanism of action.
Exelixis will have the right to exercise an option to in-license any of the target programs upon identifying a development candidate directed to that target.
Upon option exercise, Exelixis will pay BioInvent an option exercise fee. They will assume responsibility for the development candidate's future development and commercialization activities, including potential ADC and bispecific antibody engineering activities.
In addition, BioInvent will be eligible for success-based development and commercialization milestones, as well as tiered royalties on the annual net sales.
Price Action: EXEL shares are down 1.53% at $17.67 on the last check Thursday.