EXHIBIT 99.1
Contact: Glen Y. Sato
Chief Financial Officer
Exelixis, Inc.
(650) 837-7565
gsato@exelixis.com
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EXELIXIS ANNOUNCES THIRD QUARTER FINANCIAL RESULTS
SOUTH SAN FRANCISCO, Calif.- November 13, 2001 - Exelixis, Inc., (Nasdaq:EXEL)
today reported financial results for the quarter ended September 30, 2001. For
the quarter, the company reported a net loss of approximately $13.4 million, or
$0.28 per share, excluding non-cash charges for stock compensation expense, and
amortization of goodwill and intangibles. For the third quarter of 2000, the
net loss was approximately $5.5 million, or $0.13 per share, excluding non-cash
charges.
At September 30, 2001, cash, cash equivalents and short-term investments totaled
approximately $132.3 million, compared to $112.6 million at December 31, 2000.
For the quarter ended September 30, 2001, total revenues almost doubled to $11.9
million from $6.1 million for the same period of 2000. The increase was due
primarily to new collaborations formed with Bristol-Myers Squibb and Protein
Design Labs, in addition to increased contract revenues from existing
collaborations. The third quarter of 2001 also included revenues from Aventis
CropScience resulting from the December 2000 acquisition of Agritope, Inc. (now
Exelixis Plant Sciences, Inc.) and revenues from government grants resulting
from the May 2001 acquisition of Artemis Pharmaceuticals GmbH.
Research and development expenses for the third quarter of 2001 were $21.3
million, excluding stock compensation expense of $1.1 million, compared to $11.1
million, excluding stock compensation expense of approximately $2.3 million, for
the equivalent period of 2000. The increase reflects expenses from both
Exelixis Plant Sciences and Artemis Pharmaceuticals, neither of which were part
of Exelixis a year ago, as well as expansion of South San Francisco research and
development to support new collaborations and the continued expansion of our
drug discovery organization. For the quarter ended September 30, 2001, general
and administrative expenses totaled $4.8 million, excluding stock compensation
expense of $0.6 million, compared to $2.6 million, excluding stock compensation
expense of approximately $1.2 million, in the third quarter of 2000. The
increase resulted primarily from additional staffing required to support our
expanding worldwide research and development efforts. The third quarter of 2001
also included $1.4 million for the amortization of goodwill and intangibles from
recent acquisitions.
"The third quarter was highly productive for Exelixis, both in establishing key
strategic partnerships with leading companies such as Bristol-Myers Squibb and
Elan and in moving our internal programs forward aggressively," said George A.
Scangos, Ph.D., president and chief executive officer of Exelixis, Inc. "We are
confident in the robust potential of our internal pipeline and remain on track
to announce our first lead compound by year end."
Recent Highlights:
- - During the third quarter, Exelixis entered into a new collaboration with
Bristol-Myers Squibb to discover a new generation of cancer drugs. As part
of the collaboration, BMS purchased $20 million of common stock at $33.30
per share. Under the agreement, each company receives half of the targets
generated under the collaboration, and Exelixis also received royalty-free
rights to DEAE rebeccamycin, a cancer compound in Phase II clinical
development.
- - Exelixis signed chemistry collaborations with Elan Pharmaceuticals and
Scios, for the generation of high-quality, small molecule compound
libraries for high-throughput screening. Exelixis receives financial
compensation for the compounds, which reduces the cost of developing its
internal libraries, and can use these compounds for its internal programs
in addition to its partnered programs.
- - As part of the initiation of a new inflammation program, scientists at
Exelixis and the Institute of Molecular and Cellular Biology in Strasbourg,
France, identified and characterized a gene involved in mediating the
innate immune response, a discovery that could have significant
implications in treating a wide variety of human inflammatory diseases,
such as rheumatoid arthritis, asthma, atherosclerosis and inflammatory
bowel disease. The findings were published in the October 11th issue of
Developmental Cell.
- - Protein Design Labs accepted several cancer antibody targets from Exelixis
for further research and development. Under the agreement, Exelixis retains
the right to co-fund and co-develop antibodies resulting from the
collaboration. For antibody products developed by Protein Design Labs that
Exelixis elects not to co-develop, Exelixis will be entitled to specified
milestone payments and royalty payments on any product sales.
- - Exelixis continued to deliver targets and assays to partners throughout
the course of the quarter, earning milestone payments in most cases.
Outlook:
The following statements are based on current expectations. These statements
are forward-looking and actual results may differ materially. Except as
expressly set forth below, these statements do not include the potential impact
of any mergers, acquisitions or other business combinations that may be closed
or entered into after October 31, 2001.
For the fourth quarter, Exelixis anticipates that revenues will increase in the
range of 5-10%. Due to continued expansion of the drug discovery operations and
clinical development to support our effort to file our first IND for a
proprietary lead compound in 2002 as well as manufacture and develop our Phase
II cancer product, expenses, excluding non-cash charges, will increase in the
range of 10-15% from the third quarter levels. For 2001, Exelixis continues to
expect a cash burn in the range of $42-47 million based on total revenues of
$40-45 million. Exelixis also continues to expect to report a cash, cash
equivalents and short term investments balance in excess of the $112.6 million
reported at December 31, 2000.
Exelixis, Inc. is a leading worldwide genomics-based drug discovery company
focused on product development through its expertise in comparative genomics and
model system genetics. An outstanding team of company scientists has developed
multiple fungal, nematode, insect, plant and vertebrate genetic systems.
Exelixis' proprietary model systems and comparative genomics technologies
address gene function by using biologically relevant functional genomics
information very early on in the process to rapidly, efficiently and
cost-effectively translate sequence data to knowledge about the function of
genes and the proteins that they encode. The company has a significant internal
cancer discovery and drug development program, through which a number of
compounds are expected to complete screening by the end of the year. Exelixis
believes that its technology is broadly applicable to all life science
industries, including pharmaceutical, diagnostic, agricultural biotechnology and
animal health and the company has active collaborations with Aventis
CropScience, Bayer, Bristol-Myers Squibb, Elan Pharmaceuticals, Pharmacia,
Protein Design Labs, Scios and Dow AgroSciences, and is building its internal
development program in the area of oncology. For more information, please visit
the company's web site at www.exelixis.com.
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Exelixis and the Exelixis logo are registered U.S. trademarks.
This press release contains forward-looking statements, including without
limitation the matters discussed in the "Outlook" section. These forward-looking
statements are based upon Exelixis' current expectations. Forward-looking
statements involve risks and uncertainties. Exelixis' actual results and the
timing of events could differ materially from those anticipated in its
forward-looking statements as a result of many factors, including Exelixis'
ability to enter into new collaborations, continue existing collaborations and
receive milestones and royalties derived from future products developed from its
research efforts; 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 the ability to identify and develop compounds against proprietary
cancer targets; expenses and debt repayment associated with the integration of
Artemis; and the amount and timing of investments in manufacturing and clinical
development of the rebeccamycin analogue currently in Phase II clinical studies
that was acquired from Bristol-Myers Squibb in July 2001. These and other risk
factors are discussed under "Risk Factors" and elsewhere in Exelixis' Annual
Report on Form 10-K for the year ended December 31, 2000 and other SEC reports.
Exelixis expressly disclaims any obligation or undertaking to release publicly
any updates or revisions to any forward-looking statements contained herein to
reflect any change in its expectations with regard thereto or any change in
events, conditions or circumstances on which any such statements are based.
EXELIXIS, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share amounts)
(unaudited)
Three Months Ended September 30, Nine Months Ended September 30,
------------------------------------ ------------------------------------
2001 2000 2001 2000
----------------- ----------------- ----------------- -----------------
Revenues:
License $ 2,716 $ 907 $ 4,564 $ 2,271
Contract and government grants 9,212 5,211 23,649 14,914
----------------- ----------------- ----------------- -----------------
Total revenues 11,928 6,118 28,213 17,685
----------------- ----------------- ----------------- -----------------
Operating expenses:
Research and development 21,330 11,137 55,899 28,956
Selling, general and administrative 4,810 2,635 12,677 7,774
Amortization of goodwill and intangibles 1,397 - 3,673 -
Acquired in-process research and development - - 6,673 -
Stock compensation expense 1,687 3,501 5,857 12,059
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Total operating expenses 29,224 17,273 84,779 48,789
----------------- ----------------- ----------------- -----------------
Loss from operations (17,296) (11,155) (56,566) (31,104)
Other income (expense):
Interest and other income 1,617 2,318 5,109 4,333
Interest expense (811) (162) (1,460) (488)
----------------- ----------------- ----------------- -----------------
Total other income 806 2,156 3,649 3,845
----------------- ----------------- ----------------- -----------------
Net loss $ (16,490) $ (8,999) $ (52,917) $ (27,259)
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Net loss excluding non-cash charges for
stock compensation, amortization of goodwill and
intangibles, and acquired in-process research and
development $ (13,406) $ (5,498) $ (36,714) $ (15,200)
================= ================= ================= =================
Basic and diluted net loss per share excluding
non-cash charges $ (0.28) $ (0.13) $ (0.80) $ (0.56)
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Shares used in computing basic and diluted
net loss per share excluding non-cash charges 47,750 41,179 45,848 27,235
================= ================= ================= =================
Pro forma basic and diluted net loss per share
excluding non-cash charges (1) $ (0.28) $ (0.13) $ (0.80) $ (0.42)
================= ================= ================= =================
Shares used in computing pro forma basic
and diluted net loss per share excluding non-cash
charges (1) 47,750 41,179 45,848 36,034
================= ================= ================= =================
<FN>
(1) Shares used in computing pro forma basic and diluted net loss per share
include convertible stock outstanding during 2000 using the if-converted
method from the original date of issuance.
EXELIXIS, INC.
CONSOLIDATED BALANCE SHEET DATA
(in thousands)
September 30, December 31,
2001 2000 (2)
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(unaudited)
Cash, cash equivalents & short-term investments $132,283 $112,552
Working capital 103,005 95,519
Total assets 246,717 204,914
Stockholders' equity 149,411 162,734
(2) Derived from the audited consolidated financial statements