- Plans for Early Repayment of Deerfield Notes –
Company Website:
http://www.exelixis.com
SOUTH SAN FRANCISCO, Calif. -- (Business Wire)
Exelixis, Inc. (Nasdaq:EXEL) today announced that it has repaid all
amounts outstanding under its term loan with Silicon Valley Bank
initiated in 2010 and which was due for repayment on May 31, 2017. The
$80.1 million payment included $80.0 million in principal and
approximately $60,000 in interest outstanding.
Exelixis also plans to eliminate another source of indebtedness later
this year by retiring the Deerfield Notes, a series of Convertible
Secured Notes issued to entities associated with Deerfield Management
Company, L.P. due July 1, 2018. As was stated during the company’s 2016
year-end financial results conference call on February 27, 2017,
Exelixis has designated the Deerfield Notes a Current Liability given
its ability and intent to retire them in the July 2017 timeframe, one
year ahead of their maturity date. As of December 31, 2016, the carrying
balance on the Deerfield Notes was $109.1 million with the total of
$124.9 million due at maturity. Retiring the Deerfield Notes one year
ahead of their maturity date will provide the company a savings of
approximately $12 million in interest expense, net of the termination
fee.
With the early retirement of both the Silicon Valley Bank indebtedness
and the Deerfield Notes this year, Exelixis will have substantially
de-levered its balance sheet.
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’ plans to retire its
financial obligation under the Deerfield Notes in the July 2017
timeframe and related savings expectations; 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
“plans,” “will,” “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' annual report on Form 10-K
filed with the Securities and Exchange Commission (SEC) on February 27,
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/20170329006192/en/
Contacts:
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
Source: Exelixis, Inc.
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