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Exelixis, Inc. Message Board

  • buysignalinvestments buysignalinvestments Jan 23, 2013 9:12 AM Flag

    People ask what other things does EXEL have besides CABO...

    CABO is the developing approved franchise, that is the focus, but EXEL has many other things on the go with partners, which I have mentioned numerous times, and could yield up to 5 BILLION DOLLARS in payments. The article today highlights some of this in this excerpt:

    " More than One Trick
    That said, the company also earns money from partnerships based off of its other novel compounds. So, while it has decided to back just one drug itself, it isn't exactly just a one-trick pony. It has 12 other “compounds or programs” being researched in the oncology, inflammation, cardiovascular disease, and metabolic disease space. As these drugs continue to progress toward market, Exelixis is in line for both milestone (achievement based) payments and licensing payments.

    Some of the company's partners on these other drugs include household names. For example, in October 2010, the company entered into a global license agreement with Bristol-Myers Squibb (NYSE: BMY) in which Bristol received sole control of XL475, including the responsibility for all costs related to bringing the drug to market. Exelixis received an upfront payment of $35 million and the potential to earn development and regulatory milestones payments of up to $400 million and royalties on commercial sales of products based off of XL475.

    The company has similar agreements in place with Merck (NYSE: MRK) for XL499 and its related compounds. This deal has a similar structure to the one with Bristol, so that Merck pays for everything and Exelixis receives milestone and royalty payments from any marketable drugs. Those are pretty nice deals. Exelixis, however, also has collaboration and co-development agreements with companies like Genentech, Daiichi Sankyo, and GlaxoSmithKline (GSK). Some of these deals require Exelixis to share in the costs and research efforts."

    Sentiment: Strong Buy

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