Exelixis Trading Higher After Licensing Agreement with Merck
Exelixis (NASDAQ: EXEL) is showing strength today after the company announced today that it licenses PI3K-Delta program to Merck (NYSE: MRK). Under the agreement, Merck has a worldwide exclusive license and sole R&D and commercialization responsibility.
Merck will make an upfront payment of $12 million to Exelixis, who will be eligible for potential development and regulatory milestone payments for multiple indications of up to $239 million. Exelixis will also be eligible for potential combined sales performance milestones and royalties on net-sales of products emerging from the agreement.
Exelixis is currently trading at $4.62, up $0.25 or 5.72%.
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