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Exelixis Inc. (Nasdaq) surged $1.15, or 26%, to $5.55.

Exelixis Inc. (Nasdaq) surged $1.15, or 26%, to $5.55. The company sealed an exclusive deal with French drugmaker Sanofi-Aventis SA to develop several of its cancer drugs that would pay the U.S. biotech company at least $161 million in upfront and research fees. "The deal should further extend Exelixis' cash runway, allowing the company to operate independently of the capital markets for some years," Cowen & Co. analyst Eric Schmidt wrote in a research note. Sanofi will pay Exelixis $140 million in upfront fees and research funding of $21 million over three years. Exelixis could also receive milestone payments of more than $1 billion as well as royalties on sales. Under the agreement, Sanofi will have an exclusive worldwide license to XL147 and XL765, which are in Phase I clinical trials.

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Title Annotation:Medical Stock Spotlight; Sanofi-Aventis S.A.
Article Type:Brief article
Date:Jun 1, 2009
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