SOUTH SAN FRANCISCO, Calif.--(BUSINESS WIRE)--Mar. 4, 2009--
Exelixis, Inc. (Nasdaq: EXEL) today reported financial results for the
fourth quarter and year ended December 31, 2008.
Revenues for the fourth quarter ended December 31, 2008 were
$29.6 million, compared to $29.3 million for the comparable period in
2007. The increase in revenues was primarily due to additional milestone
revenue associated with the selection of XL413 under our 2007
collaboration agreement with Bristol-Myers Squibb Company. This increase
in revenue was offset by a decrease in revenue associated with the liver
X receptor program with Bristol-Myers Squibb Company, and the completion
of revenue recognition associated with the collaboration agreements with
Wyeth Pharmaceuticals for our farnesoid X receptor (FXR) program and
Genentech, Inc. for our notch program. In addition, 2008 revenue
excluded revenue associated with our former subsidiary Artemis
Pharmaceuticals GmbH, as a result of the sale of 80.1% of this
subsidiary in 2007.
Revenues for the year were $117.9 million, compared to $113.5 million in
2007. The increase in revenues for the full year was primarily due to
increased milestone revenue associated with the selection of XL139 and
XL413 under our 2007 collaboration agreement with Bristol-Myers Squibb
Company, as well as the acceleration of revenue as a result of the
conclusion of the development term under our collaboration with
GlaxoSmithKline, which ended in October 2008. These increases were
partially offset by the completion of revenue recognition associated
with the collaboration agreement with Daiichi-Sankyo Company Limited for
our mineralocorticoid receptor program and with Wyeth Pharmaceuticals
for our FXR program. In addition, 2008 revenue excluded revenue
associated with our former subsidiary Artemis Pharmaceuticals GmbH, as a
result of the sale of 80.1% of this subsidiary in 2007.
Research and development expenses for the fourth quarter 2008
were $56.9 million compared to $60.2 million for the comparable period
in 2007. Research and development expenses for the year were $257.4
million compared to $225.4 million for 2007. The decrease in expenses in
the quarter is primarily due to the transfer of clinical trial costs
associated with XL880 to GlaxoSmithKline, lower manufacturing activity
on our compounds and various cost saving measures implemented during the
year. The increase in expenses for the full year reflects the increased
costs associated with the maturation and advancement of our pipeline
into phase 3 clinical trials, the initiation of various pre-clinical
studies and phase 1 and phase 2 clinical trials.
General and administrative expenses for the fourth quarter 2008
were $9.1 million compared to $11.8 million for the comparable period in
2007. General and administrative expenses for the year were $36.9
million compared to $44.9 million for 2007. The decrease for both the
quarter and full year was primarily due to the allocation of general
corporate costs (such as facilities costs) to research and development,
which primarily reflected the growth of the research and development
function compared to the general and administrative function.
Net loss for the quarter ended December 31, 2008 was $38.0
million, or $0.36 per share, compared to $19.9 million, or $0.19 per
share, for the comparable period in 2007. For the year ended December
31, 2008, net loss was $162.9 million or $1.54 per share, compared to
$86.4 million, or $0.87 per share in 2007. The increase in the net loss
for the quarter was primarily due to the inclusion in 2007 of the gain
of $18.1 million associated with the sale of 80.1% of our subsidiary
Artemis Pharmaceuticals to Taconic Farms, Inc. in 2007. The increase in
net loss for the year was primarily due to inclusion of gains of $36.9
million associated with the Artemis transaction and the gain on the sale
of assets recognized in conjunction with our transaction with
Agrigenetics, Inc., a wholly-owned subsidiary of The Dow Chemical
Company, which was accounted for as a sale of our plant trait business,
both of which took place in 2007.
Cash and cash equivalents, short-term and long-term marketable
securities, investments held by Symphony Evolution, Inc. (a consolidated
clinical development financing vehicle) and restricted cash and
investments totaled $284.2 million at December 31, 2008, compared to
$299.5 million at December 31, 2007.
Q4 Highlights and Recent Developments:
-
Retained rights to XL184, XL281, XL228, XL820, and XL844 following
completion of the development term under a multi-year collaboration
with GlaxoSmithKline.
-
Entered into an agreement with Bristol-Myers Squibb Company to
co-develop XL184 and to license exclusive rights to XL281.
Bristol-Myers Squibb Company made an upfront cash payment of $195
million for the development and commercialization rights to both
programs and is expected to make additional license payments of $45
million in 2009. The companies will co-develop XL184 and share
worldwide (except for Japan) development costs and commercial profits
and losses on XL184 in the United States. Bristol-Myers Squibb Company
is responsible for funding all future development of XL281. Exelixis
expects to conduct much of the clinical development activities for
XL184 and XL281 in the first two years.
-
Bristol-Myers Squibb Company selected XL413, a selective inhibitor of
Cdc7, for further development. We received a milestone payment of $20
million in connection with the selection, and we exercised our option
to co-develop and co-commercialize XL413 in the United States.
-
Bristol-Myers Squibb Company opted to extend its collaboration to
develop therapies targeting the liver X receptor for an additional
year. Exelixis is entitled to an additional $6 million in research
funding over the duration of the extension.
-
Presented 15 abstracts at the 20th EORTC-NCI-AACR Symposium on
"Molecular Targets and Cancer Therapeutics." These included reports on
XL184, XL228, XL281, XL765, XL147, XL820, XL844, XL888, and XL413.
-
Discontinued the development of XL820 and XL844.
-
Presented phase 1 data from ongoing clinical trials of XL019 and XL228
at the 50th Annual Meeting of the American Society of Hematology.
-
Submitted an investigational new drug (IND) application to the U.S.
Food and Drug Administration and initiated a Phase 1 study for XL888,
an orally available, totally synthetic inhibitor of HSP90. HSP90 is a
chaperone protein that promotes the activity and stability of a range
of key regulatory proteins, including kinases.
“In 2008, we made significant strides in our R&D, business and corporate
development activities. We ended the year with close to $500 million in
cash and committed funding. We reduced our operating expenses and we
expect to have sufficient financial resources to operate through 2011,”
said George A. Scangos, Ph.D., president and chief executive officer of
Exelixis. “We initiated pivotal trials for XL184, our first proprietary
compound to reach this important milestone, and we also entered into a
global co-development and co-commercialization agreement with
Bristol-Myers Squibb for XL184 that will allow us to more rapidly
advance its clinical development in multiple significant indications in
parallel.”
Dr. Scangos added, “Over the next 12 months, we have three clear
objectives. One is to focus our clinical development efforts on XL184
while making strategic investments in the development of other compounds
to assess their clinical and commercial potential. We also intend to
partner multiple programs to generate near-term cash and reduce expenses
while retaining substantial long-term value. Finally, we recognize the
critical need to manage our costs and maintain a pragmatic but
productive balance between operational costs and financial resources. I
am optimistic about our numerous opportunities for value creation and
confident in our ability to execute in 2009 and beyond.”
Financial Outlook
For the full year 2009, we expect revenues in the range of $140 million
to $170 million and operating expenses in the range of $290 million to
$320 million, including a non-cash charge for stock-based compensation
of approximately $23 million. The company’s cash, cash equivalents,
short-term and long-term marketable securities and restricted cash
balance at the end of 2009 is expected to exceed $200 million.
Conference Call and Webcast
Exelixis’ management will discuss the company’s fourth quarter and full
year 2008 financial results and the company’s financial outlook, and
will provide a general business update, during a conference call
beginning at 2:00 p.m. PT/ 5:00 p.m. ET today, Wednesday, March 4, 2009.
To listen to a webcast of the discussion, visit the Event Calendar page
under Investors at www.exelixis.com.
About Exelixis
Exelixis, Inc. is a development-stage biotechnology company dedicated to
the discovery and development of novel small molecule therapeutics for
the treatment of cancer and other serious diseases. The company is
leveraging its fully integrated drug discovery platform to fuel the
growth of its development pipeline, which is primarily focused on
cancer. Currently, Exelixis’ broad product pipeline includes
investigational compounds in phase 3, phase 2, and phase 1 clinical
development. Exelixis has established strategic corporate alliances with
major pharmaceutical and biotechnology companies, including
Bristol-Myers Squibb Company, GlaxoSmithKline, Genentech, Wyeth
Pharmaceuticals, and Daiichi-Sankyo. For more information, please visit
the company’s web site at www.exelixis.com.
Forward-Looking Statements
This press release contains forward-looking statements, including,
without limitation, statements related to Exelixis’ receipt of license
payments from Bristol-Myers Squibb Company under the parties’
collaboration to co-develop XL184 and license of exclusive rights to
XL281; Exelixis’ and Bristol-Myers Squibb Company’s plan to share
development costs and commercial profits and losses for XL184 in the
United States under the collaboration; the responsibility of
Bristol-Myers Squibb Company to fund all future development of XL281
under the collaboration; Exelixis’ plans to conduct much of the clinical
development activities for XL184 and XL281 in the first two years of the
collaboration; Exelixis’ expectations regarding the receipt of
additional research funding from Bristol-Myers Squibb Company under the
parties’ collaboration to develop therapies targeting the liver X
receptor; Exelixis’ expectation to have sufficient financial resources
to operate through 2011; Exelixis’ ability to rapidly advance its
clinical development in multiple significant indications in parallel;
Exelixis’ objectives over the next twelve months; Exelixis’ plan to
focus clinical development efforts on XL184, while making strategic
investments in the development of other compounds; Exelixis’ intent to
partner multiple programs to generate near-term cash and reduce
expenses, while retaining substantial long-term value; Exelixis’ need to
manage costs; and Exelixis’ forecast of 2009 year-end revenues,
operating expenses and cash, cash equivalents, short-term and long-term
marketable securities and restricted cash balance. Words such as
“believe,” “expect,” “will,” “objective,” “intend” and similar
expressions are intended to identify forward-looking statements. These
forward-looking statements are based upon Exelixis’ current plans,
assumptions, beliefs, and expectations. Forward-looking statements
involve risks and uncertainties. Exelixis’ actual results and the timing
of events could differ materially from those anticipated in such
forward-looking statements as a result of these risks and uncertainties,
which include, without limitation, risks related to: Exelixis’
dependence on its relationship with Bristol-Myers Squibb Company; the
potential failure of Exelixis’ compounds to demonstrate safety and
efficacy in clinical testing; the therapeutic and commercial value of
Exelixis’ compounds; the ability to conduct clinical trials for
Exelixis’ compounds sufficient to achieve a positive completion; the
timing and level of expenses associated with the development of
Exelixis’ programs; Exelixis’ ability to enter into new collaborations;
Exelixis’ ability to execute upon its objectives; the timely receipt of
potential license payments, research funding, milestones and royalties
under Exelixis’ collaborative agreements; and changes in economic and
business conditions. These and other risk factors are discussed under
“Risk Factors” and elsewhere in Exelixis’ quarterly report on Form 10-Q
for the quarter ended September 26, 2008, and other filings with the
Securities and Exchange Commission. Exelixis expressly disclaims any
duty, obligation, or undertaking to release publicly any updates or
revisions to any forward-looking statements contained herein to reflect
any change in Exelixis’ expectations with regard thereto or any change
in events, conditions, or circumstances on which any such statements are
based.
Exelixis and the Exelixis logo are registered U.S. trademarks.
EXELIXIS, INC.
CONSOLIDATED STATEMENT OF OPERATIONS DATA
(in thousands, except per share data)
(unaudited)
|
|
|
|
|
|
|
|
Three Months Ended December 31,
|
|
Year Ended
December 31,
|
|
|
|
2008
|
|
|
|
2007
|
|
|
|
2008
|
|
|
|
2007
|
|
Revenues:
|
|
|
|
|
|
|
|
|
Contract
|
|
$
|
19,018
|
|
|
$
|
19,983
|
|
|
$
|
71,066
|
|
|
$
|
69,023
|
|
License
|
|
|
10,553
|
|
|
|
9,267
|
|
|
|
46,793
|
|
|
|
44,447
|
|
Total revenues
|
|
|
29,571
|
|
|
|
29,250
|
|
|
|
117,859
|
|
|
|
113,470
|
|
|
|
|
|
|
|
|
|
|
Operating expenses:
|
|
|
|
|
|
|
|
|
Research and development
|
|
|
56,878
|
|
|
|
60,216
|
|
|
|
257,390
|
|
|
|
225,375
|
|
General and administrative
|
|
|
9,106
|
|
|
|
11,789
|
|
|
|
36,892
|
|
|
|
44,940
|
|
Amortization of intangibles
|
|
|
—
|
|
|
|
7
|
|
|
|
—
|
|
|
|
202
|
|
Restructuring charge
|
|
|
2,890
|
|
|
|
—
|
|
|
|
2,890
|
|
|
|
—
|
|
Total operating expenses
|
|
|
68,874
|
|
|
|
72,012
|
|
|
|
297,172
|
|
|
|
270,517
|
|
|
|
|
|
|
|
|
|
|
Loss from operations
|
|
|
(39,303
|
)
|
|
|
(42,762
|
)
|
|
|
(179,313
|
)
|
|
|
(157,047
|
)
|
|
|
|
|
|
|
|
|
|
Other income (expense):
|
|
|
|
|
|
|
|
|
Interest income and other, net
|
|
|
863
|
|
|
|
3,269
|
|
|
|
5,935
|
|
|
|
13,055
|
|
Interest expense
|
|
|
(2,376
|
)
|
|
|
(965
|
)
|
|
|
(6,762
|
)
|
|
|
(3,966
|
)
|
Gain on the sale of businesses
|
|
|
70
|
|
|
|
18,128
|
|
|
|
4,570
|
|
|
|
36,936
|
|
Total other income (expense)
|
|
|
(1,443
|
)
|
|
|
20,432
|
|
|
|
3,743
|
|
|
|
46,025
|
|
|
|
|
|
|
|
|
|
|
Loss before noncontrolling interest in Symphony Evolution, Inc.
|
|
|
(40,746
|
)
|
|
|
(22,330
|
)
|
|
|
(175,570
|
)
|
|
|
(111,022
|
)
|
|
|
|
|
|
|
|
|
|
Loss attributed to noncontrolling interest in Symphony Evolution,
Inc.
|
|
|
2,796
|
|
|
|
2,408
|
|
|
|
12,716
|
|
|
|
24,641
|
|
|
|
|
|
|
|
|
|
|
Net loss
|
|
$
|
(37,950
|
)
|
|
$
|
(19,922
|
)
|
|
$
|
(162,854
|
)
|
|
$
|
(86,381
|
)
|
|
|
|
|
|
|
|
|
|
Net loss per share, basic and diluted
|
|
$
|
(0.36
|
)
|
|
$
|
(0.19
|
)
|
|
$
|
(1.54
|
)
|
|
$
|
(0.87
|
)
|
|
|
|
|
|
|
|
|
|
Shares used in computing basic and diluted net loss per share
|
|
|
106,066
|
|
|
|
104,651
|
|
|
|
105,498
|
|
|
|
99,147
|
|
EXELIXIS, INC.
CONSOLIDATED BALANCE SHEET DATA
(in thousands)
|
|
|
|
|
|
December 31,
|
|
December 31,
|
|
|
2008
|
|
|
|
2007 (1)
|
|
|
(unaudited)
|
|
|
|
|
|
|
Cash and cash equivalents and short-term and long-term marketable
securities (2)
|
$
|
284,185
|
|
|
$
|
299,530
|
|
|
|
|
|
Working capital
|
$
|
82,028
|
|
|
$
|
150,898
|
|
|
|
|
|
Total assets
|
$
|
401,622
|
|
|
$
|
412,120
|
|
|
|
|
|
Stockholders' equity (deficit)
|
$
|
(56,975
|
)
|
|
$
|
72,081
|
|
|
|
|
|
|
|
|
|
(1) Derived from the audited consolidated financial statements
|
(2) These amounts include investments held by Symphony Evolution,
Inc. of $14.7 million and $30.9 million and restricted cash and
investments of $4.0 million and $7.2 million as of December 31,
2008 and December 31, 2007, respectively.
|
Source: Exelixis, Inc.
Exelixis, Inc.
Frank Karbe, Chief Financial Officer, 650-837-7565
fkarbe@exelixis.com
Charles
Butler, Director, Investor Relations, 650-837-7277
cbutler@exelixis.com