- Retiring Notes early saves $12 million in interest expense, net
of termination fee -
- In 2016 and 2017, Exelixis retired more than $490 million of
debt -
SOUTH SAN FRANCISCO, Calif.--(BUSINESS WIRE)--Jun. 29, 2017--
Exelixis, Inc. (Nasdaq:EXEL) today announced that it has addressed its
last major source of indebtedness by retiring the Deerfield Notes, a
series of Secured Convertible Notes originally issued in July 2010 to
entities associated with Deerfield Management Company, L.P.Exelixis
retired the Notes by making a $123.8 million payment to the Deerfield
entities. The early retirement of the Deerfield Notes one year ahead of
their July 2018 maturity date provides Exelixis with a savings of
approximately $12 million in interest expense, net of the termination
fee.
“Over the course of the last year, Exelixis has retired more than $490
million of corporate debt, significantly de-levering its balance sheet
and enabling the company to plan for its future, which includes
maximizing the opportunity for CABOMETYX to help patients, while also
planning for the next generation of Exelixis medicines,” said Michael M.
Morrissey, Ph.D., the company’s President and Chief Executive Officer.
“Free of debt and with increasing cash flow, we now have the opportunity
to fund our growth from our operations. We are in the early stages of
resuming discovery operations and actively evaluating in-licensing
opportunities to augment our oncology pipeline.”
In March of this year, Exelixis repaid a separate $80.0 million term
loan with Silicon Valley Bank. In 2016, the company eliminated $287.5
million in debt when it retired a series of 4.25% Convertible Senior
Subordinated Notes due 2019 originally issued in 2012.
About Exelixis
Exelixis, Inc. (Nasdaq: EXEL) is a biopharmaceutical company committed
to the discovery, development and commercialization of new medicines to
improve care and outcomes for people with cancer. Since its founding in
1994, three products discovered at Exelixis have progressed through
clinical development, received regulatory approval, and entered the
marketplace. Two are derived from cabozantinib, an inhibitor of multiple
tyrosine kinases including MET, AXL and VEGF receptors: CABOMETYX™
tablets approved for previously treated advanced kidney cancer and
COMETRIQ® capsules approved for progressive, metastatic
medullary thyroid cancer. The third product, COTELLIC®, is a
formulation of cobimetinib, a selective inhibitor of MEK, is marketed
under a collaboration with Genentech (a member of the Roche Group), and
is approved as part of a combination regimen to treat advanced melanoma.
Both cabozantinib and cobimetinib have shown potential in a variety of
forms of cancer and are the subjects of broad clinical development
programs. For more information on Exelixis, please visit www.exelixis.com
or follow @ExelixisInc on Twitter.
Forward-Looking Statements
This press release contains forward-looking statements, including,
without limitation, statements related to: Exelixis' plan for the
company’s future, which includes maximizing the opportunity for
CABOMETYX to help patients, while also planning for the next generation
of Exelixis medicines; Exelixis’ increasing cash flows; Exelixis’
opportunity to fund the company’s growth from operations; Exelixis’
commitment to the discovery, development and commercialization of new
medicines to improve care and outcomes for people with cancer; the
clinical potential of cabozantinib and cobimetinib in a variety of forms
of cancer; and the continued development of cabozantinib and
cobimetinib. Words such as “plan,” “next,” “committed,” potential,” 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. 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 sufficiency of Exelixis’ cash resources; Exelixis'
ability to conduct clinical trials of cabozantinib sufficient to achieve
a positive completion; risks related to the potential failure of
cabozantinib and cobimetinib to demonstrate safety and efficacy in
clinical testing; risks and uncertainties related to regulatory review
and approval processes; the degree of market acceptance of CABOMETYX and
COMETRIQ; Exelixis' dependence on its relationship with its cabozantinib
collaboration partners, including, the level of their investment in the
resources necessary to successfully commercialize cabozantinib in the
territories where it is approved; Exelixis' dependence on its
relationship with Genentech/Roche with respect to cobimetinib and
Exelixis' ability to maintain its rights under the collaboration;
Exelixis' dependence on third-party vendors; Exelixis' ability to
protect the company's intellectual property rights; 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 May 1,
2017, and in Exelixis' future 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, COMETRIQ and COTELLIC are registered
U.S. trademarks, and CABOMETYX is a U.S. trademark.
View source version on businesswire.com: http://www.businesswire.com/news/home/20170629005617/en/
Source: Exelixis, Inc.
Exelixis, Inc.
Susan Hubbard, 650-837-8194
EVP,
Public Affairs &
Investor Relations
shubbard@exelixis.com
or
For
Exelixis, Inc.
Hal Mackins, 415-994-0040
hal@torchcomllc.com
