Exelixis hopes for Glaxo licensing payment

Biotechnology company Exelixis Inc. said Monday it could receive a $55 million payment if partner GlaxoSmithKline chooses to develop a potential cancer treatment.

The company said it sent Glaxo recent study data on XL184, a potential thyroid cancer drug, and expects the company to respond within 90 days, according to the six-year-old collaboration deal. That partnership is scheduled to end in October and Glaxo has so far only exercised the option to develop one compound, another cancer drug candidate.

The U.K.-based company has the right to develop up to two Exelixis compounds.

If Glaxo decides to choose XL184 for further development and eventual commercialization, Exelixis would also be entitled to potential sales milestone and royalty payments. Exelixis has already started registration for a late-stage study.

The drug candidate is also being studied as a possible lung cancer treatment and for glioblastoma multiforme, the most common type of brain cancer.