French pharmaceutical company Ipsen is paying up to $855 million for the rights to Exelixis’ cancer drug Cabozantinib.

Under the deal, Exelixis gains exclusive commercialization rights for current and potential future Cabozantinib indications outside the US, Canada and Japan, including Cometriq, which is cleared in Europe for treating adult patients with progressive, unresectable, locally advanced or metastatic medullary thyroid cancer.

The US drug discovery firm will get an upfront payment of $200 million. In addition, it will receive payments upon regulatory milestones, including $60 million upon European approval of Cabozantinib for advanced renal cell carcinoma (RCC) and $50 million upon the drug’s filing and approval in Europe for advanced hepatocellular carcinoma (HCC).

The agreement also includes up to $545 million of potential commercial milestones and provides for Exelixis to receive tiered royalties up to 26% on Ipsen’s net sales of Cabozantinib in its territories.

Ipsen CEO, Marc de Garidel, said Cabozantinib has the potential to become a key cancer product that would strengthen its oncology footprint in Europe.

The immediate priority for the drug is on advanced RCC, but the companies said they were also committed to exploring and potentially developing Cabozantinib in various cancers.

A phase 3 trial for advanced HCC is underway with top-line results expected next year. Additional earlier-stage studies are also being performed through Exelixis’ collaboration with the National Cancer Institute’s Cancer Therapy Evaluation Program (NCI-CTEP) and its ongoing Investigator-Sponsored Trial (IST) program.

Under these two programs, there are more than 45 studies either underway or planned, including trials in advanced RCC, as well as bladder, colorectal, non-small cell lung and endometrial cancers.