With a cupboard full of validated targets, Exelixis Inc. has cut a deal with Bristol-Myers Squibb Co. that provides the biotech company with its first pipeline product. The transaction marks EXEL's evolution from deals in which it retained no rights to one focused on the use of its target library for small molecule discovery in cancer to fill its own pipeline needs as well as BMY's.

EXEL, which began life developing its capabilities in model organism genetics, is now aiming to produce one IND next year and two every year afterward from its internal programs.