- Conference Call and Webcast Today at 5:00 PM Eastern Time -
SOUTH SAN FRANCISCO, Calif.--(BUSINESS WIRE)--Nov. 4, 2014--
Exelixis, Inc. (Nasdaq:EXEL) today reported financial results for the
third quarter of 2014 and provided an update on its progress toward
delivering upon its key corporate objectives and clinical development
milestones.
Corporate Updates and Key Priorities for
2014/2015
As detailed in early September, following the top-line results of the
COMET-1 trial in metastatic castration-resistant prostate cancer (CRPC),
Exelixis initiated a significant workforce reduction in order to focus
its development efforts and financial resources on the opportunities for
cabozantinib in metastatic renal cell carcinoma (RCC) and advanced
hepatocellular carcinoma (HCC). The company also continues to support
its partner Genentech, a member of the Roche Group, as it prepares for
the potential commercialization of cobimetinib, an Exelixis-discovered
compound.
METEOR Trial Enrollment Nearly Complete. Enrollment in METEOR,
the phase 3 pivotal trial in metastatic RCC, is nearly complete.
Exelixis expects the last patient to be enrolled before the end of 2014,
setting the stage for top-line results for the trial’s primary endpoint,
progression-free survival (PFS), in the second quarter of 2015. Per the
trial protocol, the primary endpoint analysis will be conducted once 259
events have occurred among the first 375 patients enrolled. This allows
for sufficient follow-up for the primary PFS endpoint at the time of
analysis. Enrollment for the first 375 patients in METEOR was completed
in June 2014.
Cobimetinib - Continued Development and Regulatory Progress. In
the third quarter of 2014, positive phase 3 results from the coBRIM
study, the phase 3 pivotal trial evaluating cobimetinib in combination
with vemurafenib in previously untreated patients with unresectable
locally advanced or metastatic melanoma harboring a BRAF V600 mutation,
were announced and subsequently presented in detail at the European
Society for Medical Oncology 2014 Congress in Madrid, Spain. Roche has
announced that it completed the Marketing Authorization Application for
the combination of cobimetinib and vemurafenib in the European Union. In
the United States, cobimetinib has received Fast Track Designation from
the U.S. Food and Drug Administration, and Genentech expects to complete
its New Drug Application filing for the combination before the end of
this year. Exelixis and Genentech continue to make progress in their
commercialization planning and preparations.
COMET-2 Trial Top-Line Results Anticipated By Year-End. Exelixis
continues to anticipate top-line results from COMET-2 before the end of
2014. The trial is evaluating cabozantinib in men with metastatic CRPC
who have moderate to severe bone pain despite optimized narcotics
medication, and the primary endpoint is pain response in the absence of
any increase in narcotics. As previously stated, Exelixis has
deprioritized cabozantinib’s development in metastatic CRPC, and based
upon the totality of the data from the COMET program, Exelixis will
discuss with regulatory authorities the potential regulatory path, if
any, of cabozantinib in metastatic CRPC.
Overall Survival (OS) Analysis for EXAM Trial in Medullary Thyroid
Cancer (MTC). EXAM is the phase 3 pivotal trial that served as the
basis for the regulatory approval of COMETRIQ® (cabozantinib)
to treat progressive, metastatic MTC in the U.S. (November 2012) and EU
(March 2014). The primary endpoint of the study is PFS and the
previously-reported data from this study demonstrated that treatment
with cabozantinib resulted in a 2.8-fold increase in PFS compared with
placebo. OS is the secondary endpoint of the trial, and the final
analysis required at least 217 events to have occurred. Exelixis has now
completed the OS analysis and the estimated median OS for the
cabozantinib arm is 26.6 months versus 21.1 months for the placebo arm
(HR = 0.85; 95% CI 0.64-1.12; p = 0.2409). These results are generally
consistent with those observed in an earlier interim analysis conducted
in 2012, and did not reach statistical significance. The subgroup
analysis by RET M918T mutation status, a known negative prognostic
factor in MTC, revealed a large and statistically significant
improvement in OS of 25.4 months with cabozantinib for the RET M918T
positive population (HR = 0.60, p = 0.0260). Exelixis will submit the
final results for publication at an upcoming scientific forum, and to
regulatory authorities to satisfy post-marketing commitments.
XL888 Late-Breaking Oral Presentation at 2014 Society for Melanoma
Research (SMR) Congress. XL888 is a novel, synthetic orally
bioavailable HSP90 inhibitor discovered and wholly owned by Exelixis.
Exelixis advanced XL888 through phase 1 testing and then placed the
program on hold to allow the company to focus its resources on the
development of cabozantinib. Based on compelling preclinical data
showing that resistance to vemurafenib can arise due to the activity of
multiple HSP90 client proteins, investigators at the Moffitt Cancer
Center initiated an ongoing phase 1 investigator-sponsored trial
evaluating XL888 in combination with vemurafenib in BRAF inhibitor naïve
patients with metastatic BRAF V600 mutant melanoma. Exelixis was
recently notified by the investigators that results from this trial will
be the subject of a late-breaking oral presentation at the 2014 SMR
Congress (November 13-16, 2014, Zurich, Switzerland). Based upon these
data, plans are underway by the investigators to initiate a phase 1b
triple combination trial evaluating vemurafenib, cobimetinib, and XL888
in a similar patient population.
Product Revenue from COMETRIQ. Net product revenue from COMETRIQ
sales was $6.3 million for the third quarter of 2014, an increase of 32
percent over the third quarter of 2013, reflecting the continued ramp up
in sales of the product following its commercial launch in the United
States in January 2013. Net product revenue for the third quarter of
2014 includes the impact of a reduction to revenue for the recognition
of a one-time project management fee of $1.8 million payable to
Exelixis’ European distribution partner upon their anticipated
achievement of a cumulative revenue goal by the end of 2014. The
remaining portion of the one-time project management fee, or $0.6
million, is expected to be recognized in the fourth quarter of 2014.
Updated Financial Guidance. Exelixis expects to end 2014 with
greater than $200 million in cash and cash equivalents, short- and
long-term investments and short- and long-term restricted cash and
investments. The company also now anticipates that full year 2014
operating expenses will be in the range of $250 million to $260 million.
This range includes the employee termination benefits and asset
impairments, but does not include any restructuring costs associated
with potentially exiting certain of the company’s buildings. Taking into
account the company’s cost saving measures, including the restructuring
activities referred to above, and an expected extension of the maturity
date of the company’s indebtedness under its note purchase agreement
with Deerfield to July 1, 2018 from July 1, 2015, Exelixis expects that
its current cash and cash equivalents, short- and long-term investments
and product revenues are sufficient to fund its operations through the
end of 2015. Exelixis has until March 31, 2015 to exercise its option to
extend the maturity date of the Deerfield indebtedness, as provided for
by the January 2014 amendment to the note purchase agreement. Any
exercise of the extension option by Exelixis will be subject to
customary conditions set forth in the note purchase agreement, as
amended.
“Exelixis moved decisively and rapidly following the deprioritization of
metastatic CRPC to refocus the company in support of the late-stage
trials of cabozantinib in metastatic RCC and advanced HCC,” said Michael
M. Morrissey, Ph.D., the company’s president and chief executive
officer. “Over the past two months, the Exelixis team has worked
diligently and made strong progress toward the clinical and business
goals that will position us to realize the potential of cabozantinib.”
Dr. Morrissey continued: “As we conclude 2014 and enter 2015, we
continue to focus on the execution of the cabozantinib clinical
development program, including the delivery of top-line results from the
METEOR trial, now anticipated in the second quarter of 2015. Exelixis
also remains committed to co-promoting cobimetinib for metastatic
melanoma, pending regulatory filing and approval. Our continued
cost-savings initiatives and ongoing financial discipline, together with
the expected extension of the maturity of our Deerfield debt, have
provided us with adequate resources to take us through the full year
2015, and we look forward to reporting on our progress in the coming
weeks and months.”
Third Quarter 2014 Financial Results
Net revenues for the quarter ended September 30, 2014 were $6.3
million, consisting entirely of product revenue related to the sale of
COMETRIQ, compared to $5.5 million for the comparable period in 2013,
which consisted of $4.8 million of product revenue related to the sale
of COMETRIQ and $0.7 million of license and contract revenue. Product
revenues for the quarter ended September 30, 2014 were net of a $1.8
million reduction to revenue for a project management fee payable to
Exelixis’ European distribution partner, as discussed above; no such
fees were recognized during the comparable period in 2013. The decrease
in contract and license revenue reflects the company’s full recognition
of all revenues from its collaboration agreements with Bristol-Myers
Squibb Company in 2013.
Research and development expenses for the quarter ended
September 30, 2014 were $43.6 million, compared to $47.4 million for the
comparable period in 2013. The decrease was primarily related to the
reversal of accrued employee bonuses and stock-based compensation
recognized in prior periods on stock options that were granted subject
to performance objectives, both as a result of the outcome of COMET-1.
In addition, clinical trial costs decreased predominantly due to a
reduction in costs related to COMET-1 that was offset in part by
increases in costs related to METEOR and CELESTIAL, Exelixis’ phase 3
pivotal trial in advanced HCC.
Selling, general and administrative expenses for the quarter
ended September 30, 2014 were $9.9 million, compared to $13.6 million
for the comparable period in 2013. The decrease was primarily related to
a reduction in legal costs, and reversals of accrued employee bonuses
and stock-based compensation recognized in prior periods on stock
options that were granted subject to performance objectives, both as a
result of the outcome of COMET-1. Those decreases were partially offset
by increased personnel expenses, the majority of which is connected with
the expansion of the company’s U.S. sales force and marketing expenses,
including an increase in expenses for cobimetinib under the company’s
collaboration agreement with Genentech.
Restructuring charge for the quarter ended September 30, 2014 was
$3.8 million compared to $0.1 million for the comparable period in 2013.
The restructuring charge for the quarter ended September 30, 2014 was
primarily related to employee termination benefits and asset impairment
charges resulting from the restructuring plan initiated in September
2014.
Other income (expense), net for the quarter ended September 30,
2014 was a net expense of ($11.0) million compared to ($11.2) million
for the comparable period in 2013. Included in interest expense for the
quarter ended September 30, 2014 was $7.5 million of non-cash expense
related to the accretion of the discounts on both the 4.25% Convertible
Senior Subordinated Notes due 2019 and the company’s indebtedness under
its note purchase agreement with Deerfield, as compared to $6.7 million
for the comparable period in 2013.
Net loss for the quarter ended September 30, 2014 was ($62.6)
million, or ($0.32) per share, basic, compared to ($67.1) million, or
($0.36) per share, basic, for the comparable period in 2013. The
decreased net loss was primarily due to decreases in research and
development expenses and selling, general and administrative expenses,
and an increase in product revenues, which was partially offset by an
increase in restructuring charges.
Cash and cash equivalents, short- and long-term investments and
short- and long-term restricted cash and investments totaled $293.5
million at September 30, 2014, compared to $415.9 million at December
31, 2013.
Conference Call and Webcast
Exelixis management will discuss the company’s financial results for the
quarter ended September 30, 2014 and provide a general business update
during a conference call beginning at 5:00 p.m. EST/2:00 p.m. PST today,
November 4, 2014. To join the call, participants may dial 1-866-270-6057
(domestic) or 1-617-213-8891 (international) and use passcode 72954080.
To listen to a live webcast of the conference call, visit the Event
Calendar page under Investors & Media at www.exelixis.com.
An archived replay of the conference call will be available on the Event
Calendar page under Investors & Media at www.exelixis.com
and via phone until 11:59 p.m. EST on December 4, 2014. Access numbers
for the phone replay are: 888-286-8010 (domestic) and 617-801-6888
(international); the passcode is 91709998.
About Exelixis
Exelixis, Inc. is a biopharmaceutical company committed to developing
small molecule therapies for the treatment of cancer. Exelixis is
focusing its development and commercialization efforts primarily on
COMETRIQ® (cabozantinib), its wholly-owned inhibitor of
multiple receptor tyrosine kinases. Another Exelixis-discovered
compound, cobimetinib, a highly selective inhibitor of MEK, is being
evaluated by Roche and Genentech (a member of the Roche Group) in a
broad development program under a collaboration with Exelixis. For more
information, please visit the company’s web site at www.exelixis.com.
Basis of Presentation
Exelixis adopted a 52- or 53-week fiscal year that generally ends on the
Friday closest to December 31st. For convenience, references
in this press release as of and for the fiscal periods ended
September 26, 2014 and September 27, 2013, and as of the fiscal year
ended December 27, 2013, are indicated as ended September 30, 2014,
September 30, 2013, and December 31, 2013, respectively.
Forward-Looking Statements
This press release contains forward-looking statements, including,
without limitation, statements related to: the continued development and
clinical, therapeutic and commercial potential of, and opportunities
for, cabozantinib, cobimetinib and other Exelixis compounds; anticipated
developments and timing with respect to Exelixis’ ongoing phase 3
pivotal trials of cabozantinib; future cobimetinib regulatory filings
and potential approvals; the progress of Exelixis’ commercialization
planning and preparation efforts with Genentech; future data
presentations and clinical trial planning; expected timing for future
revenue recognition; Exelixis’ updated financial outlook for 2014,
including 2014 year-end cash and cash equivalents, short- and long-term
investments and short- and long-term restricted cash and investments
balance and full year 2014 operating expenses; the sufficiency of
Exelixis’ cash resources to fund its operations through the end of 2015;
the expected extension of the maturity date of Exelixis’ indebtedness
under its note purchase agreement with Deerfield to July 1, 2018 from
July 1, 2015; and the timing of future reporting on Exelixis’ progress.
Words such as “continues,” “expects,” “anticipate,” “will,” “plan,”
“initiate,” “potential,” “focus,” “delivery,” ”committed,” “look
forward,” or other similar expressions, identify forward-looking
statements, but the absence of these words does not necessarily mean
that a statement is not forward-looking. In addition, any statements
that refer to expectations, projections or other characterizations of
future events or circumstances are forward-looking statements. These
forward-looking statements are based upon Exelixis’ current plans,
assumptions, beliefs, expectations, estimates and projections.
Forward-looking statements involve risks and uncertainties. Exelixis’
actual results and the timing of events could differ materially from
those anticipated in the forward-looking statements as a result of these
risks and uncertainties, which include, without limitation: the
availability of data at the expected times; risks related to the
potential failure of cabozantinib, cobimetinib and other Exelixis
compounds to demonstrate safety and efficacy in clinical testing; the
clinical, therapeutic and commercial value of cobimetinib, cabozantinib
and other Exelixis compounds; Exelixis’ dependence on its relationship
with Genentech/Roche with respect to cobimetinib and Exelixis’ ability
to maintain its rights under the collaboration; the uncertainty of
regulatory approval processes; the sufficiency of Exelixis’ capital and
other resources; the uncertain timing and level of expenses associated
with the development of cabozantinib; Exelixis’ ability to conduct
clinical trials of cabozantinib sufficient to achieve a positive
completion; Exelixis’ ability to extend the maturity date of its
indebtedness under its note purchase agreement with Deerfield in
accordance with, and subject to, the terms and conditions of the note
purchase agreement; the risk that unanticipated developments could
adversely affect the commercialization of COMETRIQ®
(cabozantinib); the degree of market acceptance of COMETRIQ and the
availability of coverage and reimbursement for COMETRIQ; risks and
uncertainties related to Exelixis’ compliance with applicable regulatory
requirements, including healthcare fraud and abuse laws and
post-marketing requirements; Exelixis’ dependence on third-party
vendors; market competition; changes in economic and business
conditions; and other factors discussed under the caption “Risk Factors”
in Exelixis’ quarterly report on Form 10-Q filed with the Securities and
Exchange Commission (SEC) on November 4, 2014 and in Exelixis’ other
filings with the SEC. The forward-looking statements made in this press
release speak only as of the date of this press release. 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, the Exelixis logo, and COMETRIQ are registered U.S.
trademarks.
|
EXELIXIS, INC.
|
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
|
(in thousands, except per share data)
|
(unaudited)
|
|
|
|
|
|
|
Three Months Ended September 30,
|
|
|
Nine Months Ended September 30,
|
|
2014
|
|
2013
|
|
|
2014
|
|
2013
|
Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
Net product revenues
|
$
|
6,291
|
|
|
$
|
4,771
|
|
|
|
$
|
17,758
|
|
|
$
|
10,670
|
|
License and contract revenues
|
—
|
|
|
695
|
|
|
|
—
|
|
|
16,321
|
|
Total revenues
|
6,291
|
|
|
5,466
|
|
|
|
17,758
|
|
|
26,991
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of goods sold
|
573
|
|
|
290
|
|
|
|
1,359
|
|
|
855
|
|
Research and development
|
43,628
|
|
|
47,354
|
|
|
|
149,451
|
|
|
129,166
|
|
Selling, general and administrative
|
9,906
|
|
|
13,598
|
|
|
|
41,063
|
|
|
37,323
|
|
Restructuring charge
|
3,758
|
|
|
137
|
|
|
|
4,135
|
|
|
865
|
|
Total operating expenses
|
57,865
|
|
|
61,379
|
|
|
|
196,008
|
|
|
168,209
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss from operations
|
(51,574
|
)
|
|
(55,913
|
)
|
|
|
(178,250
|
)
|
|
(141,218
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income (expense), net:
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income and other, net
|
1,296
|
|
|
219
|
|
|
|
3,786
|
|
|
930
|
|
Interest expense
|
(12,282
|
)
|
|
(11,430
|
)
|
|
|
(36,125
|
)
|
|
(33,726
|
)
|
Total other income (expense), net
|
(10,986
|
)
|
|
(11,211
|
)
|
|
|
(32,339
|
)
|
|
(32,796
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss
|
$
|
(62,560
|
)
|
|
$
|
(67,124
|
)
|
|
|
$
|
(210,589
|
)
|
|
$
|
(174,014
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss per share, basic and diluted
|
$
|
(0.32
|
)
|
|
$
|
(0.36
|
)
|
|
|
$
|
(1.09
|
)
|
|
$
|
(0.95
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares used in computing basic and diluted net loss per share
|
195,126
|
|
|
184,149
|
|
|
|
193,855
|
|
|
183,957
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EXELIXIS, INC.
|
CONDENSED CONSOLIDATED BALANCE SHEET DATA
|
(in thousands)
|
|
|
|
|
|
|
|
September 30, 2014 (unaudited)
|
|
December 31, 2013 (1)
|
|
|
|
Cash and investments (2)
|
|
$
|
293,485
|
|
|
$
|
415,862
|
|
|
|
|
|
|
Working capital
|
|
$
|
46,758
|
|
|
$
|
178,756
|
|
|
|
|
|
|
Total assets
|
|
$
|
383,656
|
|
|
$
|
503,287
|
|
|
|
|
|
|
Total stockholders’ (deficit) equity
|
|
$
|
(58,511
|
)
|
|
$
|
66,238
|
(1)
|
|
Derived from the audited consolidated financial statements.
|
(2)
|
|
Cash and investments include cash and cash equivalents, short- and
long-term investments and short- and long-term restricted cash and
investments. Short- and long-term restricted cash and investments
totaled $16.9 million and $29.1 million as of September 30, 2014 and
December 31, 2013, respectively.
|
Source: Exelixis, Inc.
Exelixis, Inc.
Deborah Burke, 650-837-7835
Chief
Financial Officer
dburke@exelixis.com
or
Exelixis,
Inc.
Susan Hubbard, 650-837-8194
Investor
Relations
& Corporate Communications
shubbard@exelixis.com