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.
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.
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.