SOUTH SAN FRANCISCO, Calif., Feb. 14 /PRNewswire-FirstCall/ -- Exelixis, Inc. today reported financial results for the full year and fourth quarter ended December 31, 2007.
Revenues for the year were $113.5 million, compared to $98.7 million in 2006. The increase in revenues for the full year was primarily due to revenue recognition associated with our collaboration agreements with Bristol-Myers Squibb Company for various oncology programs and the Liver X Receptor program, and with Genentech, Inc. for our XL518 program. The increase was partially offset by the completion of revenue recognition associated with our collaborations with Wyeth Pharmaceuticals for our Farnesoid X Receptor (FXR) program, with Daiichi-Sankyo Company Limited for our Mineralocorticoid Receptor (MR) program and with Helsinn Healthcare SA.
Revenues for the fourth quarter ended December 31, 2007 were $29.3 million, compared to $29.8 million for the comparable period in 2006. The decrease in revenues for the quarter was primarily due to the completion of revenue recognition associated with the collaboration agreements with Daiichi-Sankyo for MR and with Wyeth for FXR. The decrease was partially offset by revenue recognition associated with the collaboration agreements with Bristol-Myers Squibb Company for various oncology programs and with Genentech for our XL518 program.
Research and development expenses for the year were $225.4 million, compared to $185.5 million in 2006. Research and development expenses for the fourth quarter 2007 were $60.2 million, compared to $52.1 million for the comparable period in 2006. The increase in expenses for the full year and quarter reflects the increased development expenses associated with the continued expansion of our clinical trial activity and the advancement of our compounds through preclinical development.
General and administrative expenses for the year were $44.9 million, compared to $39.1 million in 2006. General and administrative expenses for the quarter were $11.8 million, compared to $11.3 million for the comparable period in 2006. The increase for both the full year and quarter was primarily due to personnel expenses and stock-based compensation expense to support our expanding operations.
Net loss for the year ended December 31, 2007 was $86.4 million, or $0.87 per share, compared to $101.5 million, or $1.17 per share, in 2006. Net loss for the fourth quarter of 2007 was $19.9 million, or $0.19 per share, compared to $25.2 million, or $0.27 per share, for the comparable period in 2006. The decrease in net loss for the full year was primarily due to the $18.8 million gain from the sale of assets recognized in conjunction with our transaction with Agrigenetics, Inc. in September 2007 and an $18.1 million gain on the sale of 80.1% of Artemis Pharmaceuticals to Taconic Farms, Inc. in November 2007. The decrease in net loss for the quarter is primarily due to the $18.1 million gain from the Artemis transaction in November.
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 $299.5 million at December 31, 2007, compared to $263.2 million at December 31, 2006.
"2007 was an exceptional year in the growth and development of Exelixis -- we moved several compounds into phase 2 development, continued to expand our clinical development pipeline and finished the year with approximately $300 million in cash," said George Scangos, Ph.D., president and chief executive officer of Exelixis, Inc. "The rapid advancement of our pipeline has positioned 2008 to be a transformative year for the company. We have submitted ten abstracts to ASCO covering a number of compounds and trials. Importantly, we hope to present meaningful data sets for XL647, XL880 and XL184, as well as our inhibitors of the PI3 kinase and MAP kinase pathways. We also plan to initiate pivotal trials this year for XL647 for non-small cell lung cancer, XL184 for medullary thyroid cancer, and potentially XL019 for myelofibrosis. We also expect multiple opt-in decisions in 2008 from partners that will give us the opportunity to co-develop and profit-share in new compounds targeting important pathways commonly deregulated in human cancers."
Financial Outlook
For the full year 2008, we expect revenues in the range of $100.0 million to $130.0 million and operating expenses in the range of $290.0 million to $320.0 million, including stock-based compensation and other non-cash charges of approximately $20.0 million to $25.0 million. The increase in expenses is primarily related to the ongoing advancement and expansion of our development activities and corresponding increases in our general and administrative infrastructure. The Company's cash, cash equivalents, short-term and long-term marketable securities, investments held by Symphony Evolution, Inc. and restricted cash balance at the end of 2008 is expected to exceed $200.0 million.
Conference Call and Webcast
Exelixis' management will discuss the company's full year and fourth quarter 2007 financial results as well as general business updates during a conference call beginning at 2:00 p.m. PT/ 5:00 p.m. ET today, Thursday, February 14, 2008. To listen to a webcast of the discussion, visit the Event Calendar page under Investors at http://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 2 and phase 1 clinical development. Exelixis has established strategic corporate alliances with major pharmaceutical and biotechnology companies, including GlaxoSmithKline, Bristol-Myers Squibb Company, Genentech, Wyeth Pharmaceuticals and Daiichi-Sankyo. For more information, please visit the company's web site at http://www.exelixis.com.
Forward-Looking Statements
This press release contains forward-looking statements, including without limitation statements related to the future development and potential efficacy of our compounds, our partners' decisions under their respective collaborations with us, our estimated future revenues and expenses, our estimated future balances of cash, cash equivalents, short-term and long-term marketable securities, investments held by Symphony Evolution, Inc. and restricted cash; and other matters discussed in the "Financial Outlook" section. Words such as "hope," "plan," "may," "expect," "potential," "opportunity," "will" and similar expressions are intended to identify forward-looking statements. These forward-looking statements are based upon our current plans, assumptions, beliefs and expectations. Forward-looking statements involve risks and uncertainties. Our 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 the potential failure of our compounds to demonstrate safety and efficacy in clinical testing, our relationship with our partners, our ability to enter into new collaborations, continue existing collaborations and receive milestones and royalties under our collaborative agreements, the rate of growth, if any, in license and contract revenues, the timing and level of expenses associated with the growth of proprietary programs and other collaborations, the ability to co-develop and generate revenues under collaborations with our partners, and the therapeutic and commercial value of our compounds. These and other risk factors are discussed under "Risk Factors" and elsewhere in our quarterly report on Form 10-Q for the quarter ended September 30, 2007 and other filings with the Securities and Exchange Commission. We expressly disclaim any duty, obligation or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in our expectations with regard thereto or any change in events, conditions or circumstances on which any such statements are based.
CONTACT: Frank Karbe, Chief Financial Officer, +1-650-837-7565,
fkarbe@exelixis.com, or Charles Butler, Senior Director, Investor
Relations, +1-650-837-7277, cbutler@exelixis.com, both of Exelixis, Inc.
Web site: http://www.exelixis.com/
