Exelixis Trading Higher After Licensing Agreement with Merck

Exelixis EXEL is showing strength today after the company announced today that it licenses PI3K-Delta program to Merck 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%.