Exelixis Pharmaceuticals Inc., Bayer deal

The companies formed joint venture GenOptera LLC (South San Francisco) to develop insecticides and nematicides (see BioCentury Extra, Jan. 11). GenOptera, which is 60 percent owned by BAYG, will have exclusive rights to use Exelixis' model system genetics in this field. BAYG will pay Exelixis an upfront fee of $20 million and will provide $80 million in R&D funding over eight years plus potential milestones. Bayer retains exclusive rights to develop insecticides based on developments at GenOptera, but the venture will be able to negotiate agreements with third parties in some circumstances. The venture is an expansion of the partners' 1998 collaboration (see BioCentury, May 26, 1998). ...