FORM 10-K
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ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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EXELIXIS, INC.
(Exact name of registrant as specified in its charter)
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Delaware
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04-3257395
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(State or other jurisdiction of incorporation or organization)
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(I.R.S. Employer Identification Number)
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Title of Each Class
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Name of Each Exchange on Which Registered
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Common Stock $.001 Par Value per Share
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The Nasdaq Stock Market LLC
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Large accelerated filer
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ý
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Accelerated filer
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¨
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Non-accelerated filer
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¨
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Smaller reporting company
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¨
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Emerging growth company
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¨
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Page
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Item 1.
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Item 1A.
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Item 1B.
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Item 2.
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Item 3.
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Item 4.
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Item 5.
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Item 6.
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Item 7.
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Item 7A.
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Item 8.
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Item 9.
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Item 9A.
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Item 9B.
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Item 10.
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Item 11.
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Item 12.
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Item 13.
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Item 14.
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Item 15.
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Item 16.
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CLINICAL DEVELOPMENT PROGRAM FOR CABOZANTINIB, SINGLE-AGENT
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Indication
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Status Update
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Thyroid Cancer
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Progressive, metastatic medullary thyroid cancer
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Approved in U.S. and EU (EXAM)
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Progressive, metastatic medullary thyroid cancer
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Post-marketing study (EXAMINER)
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Differentiated thyroid cancer (DTC)
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Phase 3 (COSMIC-311)
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Renal Cell Carcinoma (RCC)
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Advanced RCC
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Approved in U.S. and EU (METEOR and CABOSUN)
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First- or second-line papillary RCC
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Randomized phase 2† (PAPMET)
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Hepatocellular Carcinoma (HCC)
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Second- and later-line HCC
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Approved in U.S. on January 14
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2019; approved in EU in November 2018 (CELESTIAL)
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Non-Small Cell Lung Cancer (NSCLC)
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EGFR wild-type
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Phase 2†
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Molecular alterations in RET, ROS1, MET, AXL, or NTRK1
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Phase 2*
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Additional Trials
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Metastatic urothelial carcinoma (UC)
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Phase 2* (ATLANTIS)
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Colorectal cancer (CRC)
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Phase 2*
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High-grade uterine sarcomas
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Phase 2§
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Metastatic gastrointestinal stromal tumor
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Phase 2§ (CABOGIST)
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Pancreatic neuroendocrine tumors and carcinoid tumors
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Phase 2* and Phase 3† (CABINET)
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Plexiform neurofibromas (pediatric and adult cohorts)
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Phase 2*
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Relapsed osteosarcoma or Ewing sarcoma
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Phase 2†
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Soft-tissue sarcomas
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Phase 2†
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*
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Trial conducted through our IST program.
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†
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Trial conducted through collaboration with NCI-CTEP.
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§
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Trial sponsored by the European Organization for Research and Treatment of Cancer.
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*
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Trial conducted through our IST program.
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†
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Trial conducted through collaboration with NCI-CTEP.
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§
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Trial sponsored by the European Organization for Research and Treatment of Cancer.
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patients with advanced non-squamous NSCLC without a defined tumor genetic alteration (EGFR, ALK, ROS1, or BRAF) who have not received prior therapy with an ICI;
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patients with NSCLC without a defined tumor genetic alteration who have progressed following treatment with an ICI;
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patients with NSCLC with an EGFR mutation who have progressed following treatment with an EGFR-targeting TKI for metastatic disease;
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patients with UC who have progressed following treatment with an ICI;
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patients with CRPC who have previously received enzalutamide and/or abiraterone acetate and experienced radiographic disease progression in soft tissue;
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patients with RCC with clear cell histology who have not had prior systemic anticancer therapy;
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patients with RCC with non-clear cell histology who have not had prior systemic anticancer therapy for inoperable, locally advanced, recurrent or metastatic disease;
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patients with UC who have progressed on or after platinum-containing chemotherapy;
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patients with UC who are ineligible for cisplatin-based chemotherapy and have not received prior systemic chemotherapy for inoperable, locally advanced or metastatic disease;
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patients with UC who are eligible for cisplatin-based chemotherapy and have not received prior systemic chemotherapy for inoperable, locally advanced or metastatic disease;
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patients with triple-negative breast cancer (TNBC) who have progressed following treatment with at least one prior systemic therapy for inoperable, locally advanced, recurrent or metastatic disease;
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patients with epithelial ovarian cancer (EOC) who have platinum-resistant or refractory disease;
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patients with endometrial cancer who have progressed following treatment with at least one prior systemic therapy for inoperable, locally advanced, recurrent or metastatic disease;
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patients with advanced HCC who have a Child-Pugh score of A and have not had prior systemic anticancer therapy for inoperable, locally advanced, recurrent or metastatic disease;
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patients with gastric or gastroesophageal junction adenocarcinoma who have progressed following treatment with platinum-containing or fluoropyrimidine-containing chemotherapy for inoperable locally advanced, recurrent or metastatic disease;
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patients with colorectal adenocarcinoma who have progressed following treatment with systemic chemotherapy that contained fluoropyrimidine in combination with oxaliplatin or irinotecan for metastatic disease;
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patients with head and neck cancer of squamous cell histology who have progressed following treatment with platinum-containing chemotherapy for inoperable locally advanced, recurrent or metastatic disease; and
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patients with DTC who are radio-refractory or deemed ineligible for treatment with iodine-131.
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the combination of cobimetinib and vemurafenib in additional melanoma patient populations and settings;
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a phase 2 trial of cobimetinib in combination with taxanes, with or without atezolizumab in first-line TNBC (COLET);
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Phase 2 studies of cobimetinib in combination with atezolizumab in RCC, head and neck squamous cell carcinoma, UC and hormone receptor positive, HER2 negative breast cancer;
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Phase 1/2 studies of cobimetinib in combination with atezolizumab in melanoma and NSCLC, in combination with vemurafenib and atezolizumab in melanoma, and in combination with venetoclax in relapsed or refractory acute myeloid leukemia and multiple myeloma;
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a phase 1b study evaluating the safety, tolerability and pharmacokinetics of cobimetinib in combination with atezolizumab and bevacizumab in patients with metastatic CRC; and
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a phase 1b/2 study of cobimetinib in combination with atezolizumab (one arm of a randomized umbrella study) in metastatic pancreatic ductal adenocarcinoma.
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nonclinical laboratory and animal tests, some of which must be conducted in accordance with Good Laboratory Practices;
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submission of an IND, which must become effective before human clinical trials may begin;
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adequate and well-controlled human clinical trials to establish the safety and efficacy of the investigational drug candidate for its proposed intended use;
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for drug products, submission of an New Drug Application (NDA) to the FDA for commercial marketing, or generally of a supplemental New Drug Application (sNDA), for approval of a new indication if the product is already approved for another indication;
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for biological products, submission of a Biologics License Application (BLA) to FDA for commercial marketing, or generally a supplemental Biologics License Application (sBLA) for approval of a new indication if the product is already approved for another indication;
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pre-approval inspection of manufacturing facilities and selected clinical investigators for their compliance with Good Manufacturing Practices (GMP) and Good Clinical Practices (GCP);
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if FDA convenes an advisory committee, satisfactory completion of the advisory committee review; and
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FDA approval of the NDA or sNDA, or BLA or sBLA.
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Phase 1 - Studies, which involve the initial introduction of a new drug product candidate into humans, are initially conducted in a limited number of subjects to test the product candidate for safety, tolerability, absorption, metabolism, distribution and excretion in healthy humans or patients.
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Phase 2 - Studies are conducted with groups of patients afflicted with a specified disease in order to provide enough data to evaluate the preliminary efficacy, optimal dosage, and common short-term side effect and risks associated with the drug. Multiple phase 2 clinical trials may be conducted by the sponsor to obtain information prior to beginning larger and more expensive phase 3 clinical trials. Phase 2 studies are typically well controlled, closely monitored, and conducted in a relatively small number of patients, usually involving no more than several hundred subjects. In some cases, a sponsor may decide to run what is referred to as a “phase 2b”
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Phase 3 - When earlier phase evaluations provide preliminary evidence suggesting that a dosage range of the product is effective and has an acceptable safety profile, phase 3 trials are performed to gather the additional information about effectiveness and safety that is needed to evaluate the overall benefit-risk relationship of the drug and to provide an adequate basis for physician labeling. Phase 3 trials are undertaken in large patient populations to further evaluate dosage, to provide statistically significant evidence of clinical efficacy and to further test for safety in an expanded patient population at multiple clinical trial sites.
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efficacy, safety and reliability of cabozantinib;
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timing and scope of regulatory approval;
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the speed at which we develop cabozantinib for the treatment of additional tumor types beyond its approved indications;
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our ability to complete clinical development and obtain regulatory approvals for cabozantinib;
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our ability to manufacture and sell commercial quantities of cabozantinib product to the market;
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our ability to successfully commercialize cabozantinib and secure coverage and adequate reimbursement in approved indications;
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product acceptance by physicians and other health care providers;
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the level of our collaboration partners’ investments in the resources necessary to successfully commercialize cabozantinib in territories where it is approved outside of the U.S.;
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skills of our employees and our ability to recruit and retain skilled employees;
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protection of our intellectual property; and
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the availability of substantial capital resources to fund development and commercialization activities
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Product
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Patent No.
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General Subject Matter
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Patent Expiration
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CABOMETYX
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7,579,473
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Composition of matter
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2026
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8,497,284
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Methods of treatment
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2024
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8,877,776
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Salt and polymorphic forms of cabozantinib
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2030
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9,724,342
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Formulations of cabozantinib
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2033
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10,039,757
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Methods of treatment
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2031
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10,034,873
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Methods of treatment
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2031
(1)
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COMETRIQ
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7,579,473
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Composition of matter
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2026
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8,877,776
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Salt and polymorphic forms of cabozantinib
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2030
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9,717,720
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Formulations of cabozantinib
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2032
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(1)
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Filed for inclusion in the Orange Book for patients with HCC who have been previously treated with sorafenib
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Product
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Patent No.
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General Subject Matter
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Patent Expiration
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CABOMETYX
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2213661
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Composition of matter and methods of treatment
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2029
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2387563
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Salt and polymorphic forms of cabozantinib and methods of treatment
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2030
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COMETRIQ
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2213661
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Composition of matter and methods of treatment
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2029
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2387563
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Salt and polymorphic forms of cabozantinib and methods of treatment
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2030
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the effectiveness, or perceived effectiveness, of CABOMETYX in comparison to competing products;
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the safety of CABOMETYX, including the existence of serious side effects of CABOMETYX and their severity in comparison to those of competing products;
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CABOMETYX’s relative convenience and ease of administration;
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potential unexpected results connected with analysis of data from future or ongoing clinical trials of cabozantinib;
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the timing of CABOMETYX label expansions for additional indications, if any, relative to competitive treatments;
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the price of CABOMETYX relative to competitive therapies;
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price increases taken by us and the impact on the net sales price of CABOMETYX as a result of any new laws, regulations or other government initiatives affecting pharmaceutical pricing;
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the strength of CABOMETYX sales efforts, marketing, market access and product distribution support;
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the sufficiency of commercial and government health insurance coverage and adequacy of reimbursement for CABOMETYX; and
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our ability to enforce our intellectual property rights with respect to CABOMETYX.
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the federal Anti-Kickback Statute (AKS), which governs our business activities, including our marketing practices, medical educational programs, pricing policies, and relationships with healthcare providers or other entities.
The AKS has been broadly interpreted to apply to manufacturer arrangements with prescribers, purchasers and formulary managers, among others. Among other things, this statute prohibits persons and entities
from knowingly and willfully soliciting, receiving, offering or paying remuneration, directly or indirectly, in exchange for or to induce either the referral of an individual for, or the purchase, order or recommendation of, any good or service for which payment may be made under federal healthcare programs such as the Medicare and Medicaid programs. Remuneration is not defined in the AKS and has been broadly interpreted to include anything of value, including for example, gifts, discounts, coupons, the furnishing of supplies or equipment, credit arrangements, payments of cash, waivers of payments, ownership interests, value-added services to customers, and providing anything at less than its fair market value;
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the FDCA and its implementing regulations, which prohibit, among other things, the introduction or delivery for introduction into interstate commerce of any drug that is adulterated or misbranded;
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federal civil and criminal false claims laws, including the civil False Claims Act, and civil monetary penalty laws, which prohibit, among other things, individuals or entities from knowingly presenting, or causing to be presented, claims for payment from Medicare, Medicaid, or other third-party payers that are false or fraudulent, or making a false statement to avoid, decrease or conceal an obligation to pay money to the federal government;
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federal criminal laws that prohibit executing a scheme to defraud any healthcare benefit program or making false statements relating to healthcare matters;
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HIPAA and its implementing regulations, which impose certain requirements relating to the privacy, security and transmission of individually identifiable health information on covered entities and business associates that access such information on behalf of a covered entity;
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state law equivalents of each of the above federal laws, such as anti-kickback and false claims laws, which may apply to items or services reimbursed by any third-party payer, including commercial insurers, and state laws governing the privacy and security of health information in certain circumstances, many of which differ from each other in significant ways and may not have the same effect, thus complicating compliance efforts;
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the PPACA Open Payments program created under the Physician Payments Sunshine Act and its implementing regulations, which requires certain manufacturers of drugs, devices, biologics and medical supplies that are reimbursable under Medicare, Medicaid, or the Children’s Health Insurance Program, with specific exceptions, to report annually to the government information related to certain payments and other transfers of value to physicians and teaching hospitals, as well as ownership and investment interests held by physicians and their immediate family members;
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state laws and regulations that require drug manufacturers to file reports relating to pricing and marketing information, which requires tracking gifts and other remuneration and items of value provided to healthcare professionals and entities, as
well as state and local laws requiring the registration of pharmaceutical sales representatives;
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the Foreign Corrupt Practices Act, a U.S. law which regulates certain financial relationships with foreign government officials (which could include, for example, certain medical professionals) and its foreign equivalents;
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federal and state consumer protection and unfair competition laws, which broadly regulate marketplace activities and activities that potentially harm consumers; and
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federal,
state and municipal pharmaceutical price and price reporting laws, both existing (e.g., California’s SB-17) and under consideration, which require or propose to require us to provide notice of price increases and/or file complex ancillary reports concerning prices and pricing and discount practices. The legal and regulatory landscape, and associated compliance obligations imposed on pharmaceutical companies, may increase general and administrative costs
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cause revenue fluctuations due to speculative buying practices by purchasers
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or diminish our revenues as a result of the imposition of caps on pricing and price increases.
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lack of efficacy or a tolerable safety profile;
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negative or inconclusive clinical trial results may require us to conduct further testing or to abandon projects that we had expected to be promising;
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discovery or commercialization by our competitors of other compounds or therapies that show significantly improved safety or efficacy compared to cabozantinib or our other product candidates;
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our inability to identify and maintain a sufficient number of trial sites, many of which may already be engaged in other clinical trial programs;
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lower-than-anticipated patient registration or enrollment in our clinical testing, resulting in the delay or cancellation of clinical testing;
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failure by our collaborators to provide us on a timely basis with an adequate supply of product that complies with the applicable quality and regulatory requirements for a combination trial;
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failure of our third-party contract research organizations or investigators to satisfy their contractual obligations, including deviating from any trial protocols; and
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regulators or institutional review boards may withhold authorization to commence or conduct clinical trials of cabozantinib or another product candidate, or delay, suspend or terminate clinical research for various reasons, including noncompliance with regulatory requirements or their determination that participating patients are being exposed to unacceptable health risks.
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characteristics of the product candidate under investigation;
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the number of patients who ultimately participate in the clinical trial;
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the duration of patient follow-up that is appropriate in view of the results or required by regulatory authorities;
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the number of clinical sites included in the trials; and
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the length of time required to enroll suitable patient subjects.
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the commercial success of both CABOMETYX and COMETRIQ and the revenues we generate from those approved products;
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costs associated with maintaining our expanded sales, marketing, market access, medical affairs and product distribution capabilities for CABOMETYX and COMETRIQ;
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the achievement of stated regulatory and commercial milestones and royalties paid under our collaboration agreements with Ipsen and Takeda;
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the commercial success of and revenues generated by products marketed under our collaboration and license agreements;
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future clinical trial results;
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the level of our investments in the expansion of our pipeline through drug discovery and corporate development activities;
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our ability to control costs;
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the number and size of clinical trials we conduct and the cost of drug supply for such clinical trials evaluating our products with other therapeutic agents;
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trends and developments in the pricing of oncologic therapeutics in the U.S. and abroad, especially in the EU;
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scientific developments in the market for oncologic therapeutics and the timing of regulatory approvals for competing oncologic therapies; and
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the filing, maintenance, prosecution, defense and enforcement of patent claims and other intellectual property rights.
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our inability to control the amount and timing of resources that our collaborators or potential future collaborators will devote to the development or commercialization of drug candidates or to their marketing and distribution;
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the possibility that collaborators may delay clinical trials, fail to supply us on a timely basis with the product required for a combination trial, deliver product that fails to meet appropriate quality and regulatory standards and results in a market recall or withdrawal, provide insufficient funding for a clinical trial program, stop a clinical trial or abandon a drug candidate, repeat or conduct new clinical trials or require a new formulation of a drug candidate for clinical testing;
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disputes that may arise between us and our collaborators that result in the delay or termination of the research, development or commercialization of our drug candidates, or that diminish or delay receipt of the economic benefits we are entitled to receive under the collaboration, or that result in costly litigation or arbitration that diverts management’s attention and resources;
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our inability to control the U.S. commercial resourcing decisions made and resulting costs incurred by Genentech for COTELLIC, which costs we are obligated to share, in part, under our collaboration agreement with Genentech;
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the possibility that our collaborators may experience financial difficulties;
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our collaborators’ lack of success in their efforts to obtain regulatory approvals in a timely manner, or at all;
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our collaborators’ failure to properly maintain or defend our intellectual property rights or their use of our intellectual property rights or proprietary information in such a way as to invite litigation that could jeopardize or invalidate our intellectual property rights or expose us to potential litigation;
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our collaborators’ failure to comply with the terms of our collaboration agreements and related ancillary agreements;
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our collaborators’ failure to comply with applicable healthcare laws, as well as established guidelines, laws and regulations related to GMP, GCP, GDP and Good Pharmacovigilance Practices;
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business combinations or significant changes in a collaborator’s business strategy may adversely affect a collaborator’s willingness or ability to complete its obligations under any arrangement;
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the possibility that our collaborators could independently move forward with competing drug candidates developed either independently or in collaboration with others, including our competitors;
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our inability to enter into additional collaboration arrangements with other parties in an area or field of exclusivity;
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the possibility that future collaborators may require us to relinquish some important rights, such as marketing and distribution rights; and
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the possibility that collaborations may be terminated or allowed to expire, which would delay, and may increase the cost of development of our drug candidates.
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the commercial success of both CABOMETYX and COMETRIQ and the revenues we generate from those approved products;
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customer ordering patterns for CABOMETYX and COMETRIQ, which may vary significantly from period to period
as a result of multiple factors, including pricing information required to be disclosed by us pursuant to drug pricing transparency laws
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the overall level of demand for CABOMETYX and COMETRIQ, including the impact of any competitive products and the duration of therapy for patients receiving CABOMETYX or COMETRIQ;
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the achievement of stated regulatory and commercial milestones and royalties paid under our collaboration agreements with Ipsen and Takeda;
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the commercial success of and revenues generated by products marketed under our collaboration and license agreements
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changes in the amount of deductions from gross sales, including changes to the discount percentage of rebates and chargebacks mandated by the government programs in which we participate, including increases in the government discount percentage resulting from price increases we have taken or may take in the future, or due to different levels of utilization by entities entitled to government rebates and chargebacks and changes in patient demographics;
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costs associated with maintaining our sales, marketing, market access, medical affairs and product distribution capabilities for CABOMETYX and COMETRIQ;
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the achievement of stated regulatory and commercial milestones under our collaboration agreements;
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the progress and scope of other development and commercialization activities for cabozantinib and our other compounds;
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future clinical trial results;
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our future investments in the expansion of our pipeline through drug discovery and business development activities;
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the inability to obtain adequate product supply for any approved drug product or inability to do so at acceptable prices;
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recognition of upfront licensing or other fees or revenues;
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payments of non-refundable upfront or licensing fees, or payment for cost-sharing expenses, to third parties;
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the introduction of new technologies or products by our competitors;
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the timing and willingness of collaborators to further develop or, if approved, commercialize our product candidates out-licensed to them;
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the termination or non-renewal of existing collaborations or third-party vendor relationships;
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regulatory actions with respect to our product candidates and any approved products or our competitors’ products;
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disputes or other developments relating to proprietary rights, including patents, litigation matters and our ability to obtain patent protection for our technologies;
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the timing and amount of expenses incurred for clinical development and manufacturing of cabozantinib;
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adjustments to expenses accrued in prior periods based on management’s estimates after the actual level of activity relating to such expenses becomes more certain;
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the impairment of acquired goodwill and other assets;
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significant fluctuations in interest rates or foreign currency exchange rates;
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general and industry-specific economic conditions that may affect our or our collaborators’ research and development expenditures; and
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other factors described in this “Risk Factors” section.
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adverse or inconclusive results or announcements related to our or our collaborators’ clinical trials or delays in those clinical trials;
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the announcement of FDA approval or non-approval, or delays in the FDA review process with respect to cabozantinib, our collaborators’ product candidates being developed in combination with cabozantinib, or our competitors’ product candidates;
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the commercial success of both CABOMETYX and COMETRIQ and the revenues we generate from those approved products;
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the timing of achievement of our clinical, regulatory, partnering and other milestones, such as the commencement of clinical development, the completion of a clinical trial, the filing for regulatory approval or the establishment of collaborative arrangements for cabozantinib or any of our other programs or compounds;
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actions taken by regulatory agencies, both in the U.S. and abroad, with respect to cabozantinib or our clinical trials for cabozantinib;
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unanticipated regulatory actions taken by the FDA as a result of changing FDA standards and practices concerning the review of product candidates, including approvals at earlier stages of clinical development or with lesser developed data sets and expedited reviews;
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the announcement of new products or clinical trial data by our competitors;
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the announcement of regulatory applications seeking a path to U.S. approval of generic versions of our marketed products;
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quarterly variations in our or our competitors’ results of operations;
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developments in our relationships with our collaborators, including the termination or modification of our agreements;
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the announcement of an in-licensed product candidate or strategic acquisition;
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conflicts or litigation with our collaborators;
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litigation, including intellectual property infringement and product liability lawsuits, involving us;
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failure to achieve operating results projected by securities analysts;
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changes in earnings estimates or recommendations by securities analysts;
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the entry into new financing arrangements;
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developments in the biotechnology, biopharmaceutical or pharmaceutical industry;
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sales of large blocks of our common stock or sales of our common stock by our executive officers, directors and significant stockholders;
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additions and departures of key personnel or board members;
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the extent to which coverage and adequate reimbursement is available for both CABOMETYX and COMETRIQ from government and health administration authorities, private health insurers, managed care programs and other third-party payers;
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disposition of any of our technologies or compounds; and
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general market, economic and political conditions and other factors, including factors unrelated to our operating performance or the operating performance of our competitors.
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a classified Board of Directors;
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a prohibition on actions by our stockholders by written consent;
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the inability of our stockholders to call special meetings of stockholders;
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the ability of our Board of Directors to issue preferred stock without stockholder approval, which could be used to institute a “poison pill” that would work to dilute the stock ownership of a potential hostile acquirer, effectively preventing acquisitions that have not been approved by our Board of Directors;
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limitations on the removal of directors; and
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advance notice requirements for director nominations and stockholder proposals.
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|
December 31,
|
||||||||||||||||
|
2013
|
|
2014
|
|
2015
|
|
2016
|
|
2017
|
|
2018
|
||||||
Exelixis, Inc.
|
100
|
|
|
28
|
|
|
95
|
|
|
251
|
|
|
513
|
|
|
328
|
|
Nasdaq Composite Index
|
100
|
|
|
114
|
|
|
120
|
|
|
130
|
|
|
166
|
|
|
158
|
|
Nasdaq Biotechnology Index
|
100
|
|
|
136
|
|
|
150
|
|
|
117
|
|
|
142
|
|
|
127
|
|
|
Year Ended December 31,
|
||||||||||||||||||
|
2018
|
|
2017
|
|
2016
|
|
2015
|
|
2014
|
||||||||||
|
(In thousands, except per share data)
|
||||||||||||||||||
Consolidated Statements of Operations Data:
|
|
|
|
|
|
|
|
|
|
||||||||||
Revenues
|
$
|
853,826
|
|
|
$
|
452,477
|
|
|
$
|
191,454
|
|
|
$
|
37,172
|
|
|
$
|
25,111
|
|
Operating expenses:
|
|
|
|
|
|
|
|
|
|
||||||||||
Cost of goods sold
|
26,348
|
|
|
15,066
|
|
|
6,552
|
|
|
3,895
|
|
|
2,043
|
|
|||||
Research and development
|
182,257
|
|
|
112,171
|
|
|
95,967
|
|
|
96,351
|
|
|
189,101
|
|
|||||
Selling, general and administrative
|
206,366
|
|
|
159,362
|
|
|
116,145
|
|
|
57,305
|
|
|
50,829
|
|
|||||
Restructuring (recovery) charge
|
—
|
|
|
(32
|
)
|
|
914
|
|
|
1,042
|
|
|
7,596
|
|
|||||
Total operating expenses
|
414,971
|
|
|
286,567
|
|
|
219,578
|
|
|
158,593
|
|
|
249,569
|
|
|||||
Income (loss) from operations
|
438,855
|
|
|
165,910
|
|
|
(28,124
|
)
|
|
(121,421
|
)
|
|
(224,458
|
)
|
|||||
Other income (expenses), net
|
13,237
|
|
|
(7,333
|
)
|
|
(42,098
|
)
|
|
(40,268
|
)
|
|
(37,021
|
)
|
|||||
Income (loss) before income taxes
|
452,092
|
|
|
158,577
|
|
|
(70,222
|
)
|
|
(161,689
|
)
|
|
(261,479
|
)
|
|||||
Income tax benefit (provision)
|
237,978
|
|
|
(4,350
|
)
|
|
—
|
|
|
(55
|
)
|
|
182
|
|
|||||
Net income (loss)
|
$
|
690,070
|
|
|
$
|
154,227
|
|
|
$
|
(70,222
|
)
|
|
$
|
(161,744
|
)
|
|
$
|
(261,297
|
)
|
Net income (loss) per share, basic
|
$
|
2.32
|
|
|
$
|
0.52
|
|
|
$
|
(0.28
|
)
|
|
$
|
(0.77
|
)
|
|
$
|
(1.34
|
)
|
Net income (loss) per share, diluted
|
$
|
2.21
|
|
|
$
|
0.49
|
|
|
$
|
(0.28
|
)
|
|
$
|
(0.77
|
)
|
|
$
|
(1.34
|
)
|
Shares used in computing net income (loss) per share, basic
|
297,892
|
|
|
293,588
|
|
|
250,531
|
|
|
209,227
|
|
|
194,299
|
|
|||||
Shares used in computing net income (loss) per share, diluted
|
312,803
|
|
|
312,003
|
|
|
250,531
|
|
|
209,227
|
|
|
194,299
|
|
|
December 31,
|
||||||||||||||||||
|
2018
|
|
2017
|
|
2016
|
|
2015
|
|
2014
|
||||||||||
|
(In thousands)
|
||||||||||||||||||
Consolidated Balance Sheet Data:
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash and investments
|
$
|
851,621
|
|
|
$
|
457,176
|
|
|
$
|
479,554
|
|
|
$
|
253,310
|
|
|
$
|
242,760
|
|
Working capital (deficit)
|
$
|
791,544
|
|
|
$
|
369,704
|
|
|
$
|
200,215
|
|
|
$
|
126,414
|
|
|
$
|
(3,188
|
)
|
Total assets
|
$
|
1,422,286
|
|
|
$
|
655,294
|
|
|
$
|
595,739
|
|
|
$
|
332,223
|
|
|
$
|
323,256
|
|
Long-term obligations
|
$
|
29,361
|
|
|
$
|
255,163
|
|
|
$
|
237,635
|
|
|
$
|
420,897
|
|
|
$
|
312,163
|
|
Accumulated deficit
|
$
|
(880,363
|
)
|
|
$
|
(1,829,172
|
)
|
|
$
|
(1,983,147
|
)
|
|
$
|
(1,912,925
|
)
|
|
$
|
(1,751,181
|
)
|
Total stockholders’ equity (deficit)
|
$
|
1,287,453
|
|
|
$
|
284,961
|
|
|
$
|
89,318
|
|
|
$
|
(140,806
|
)
|
|
$
|
(159,324
|
)
|
•
|
In January and June 2018, we announced amendments to the protocol for COSMIC-021, the phase 1b trial of cabozantinib in combination with atezolizumab in patients with locally advanced or metastatic solid tumors, to add new expansion cohorts to the trial (for an aggregate of eighteen cohorts), which now includes patients with RCC, UC, NSCLC, CRPC, HCC, TNBC, EOC, endometrial cancer, gastric or gastroesophageal junction adenocarcinoma, colorectal adenocarcinoma, DTC and head and neck cancer of squamous cell histology.
|
•
|
In January 2018, we entered into an exclusive collaboration and license agreement with StemSynergy for the discovery and development of novel oncology compounds aimed to inhibit tumor growth by targeting CK1α.
|
•
|
In February 2018, we announced updated results from the NCI-CTEP-sponsored phase 1 trial of cabozantinib in combination with nivolumab, with or without ipilimumab, in patients with refractory genitourinary tumors. The updated results demonstrated an acceptable tolerability profile and high rates of durable responses in the previously treated metastatic UC and metastatic RCC cohorts.
|
•
|
In April 2018, we appointed Maria C. Freire, Ph.D. to our Board of Directors. Dr. Freire serves as President and Executive Director and as a member of the board of directors of the Foundation for the National Institutes of Health, an independent 501(c)(3) charitable organization established by Congress to support the National Institutes of Health by raising private funds for biomedical research and fostering partnerships and alliances around the world.
|
•
|
In May 2018, we entered into a collaboration and license agreement with Invenra to discover and develop multispecific antibodies for the treatment of cancer.
|
•
|
In May 2018, Ipsen received regulatory approval from the EC for CABOMETYX as a treatment for adult patients with previously untreated, intermediate- or poor-risk advanced RCC. The EC’s approval of CABOMETYX was based on results from CABOSUN, a randomized phase 2 trial comparing cabozantinib with sunitinib in patients with previously untreated advanced RCC with intermediate- or poor-risk disease that demonstrated a statistically significant and clinically meaningful improvement in PFS and ORR versus sunitinib.
|
•
|
In May 2018, we announced that IMblaze370, Genentech’s phase 3 pivotal trial evaluating the combination of cobimetinib with atezolizumab in patients with CRC, did not meet its primary endpoint. However, Genentech continues to pursue the cobimetinib development program, either as a single-agent or in combination studies.
|
•
|
In June 2018, clinical data from cabozantinib were the subject of fifteen presentations at the ASCO 2018 Annual Meeting, including a poster presentation covering a sub-group analysis of CELESTIAL, our phase 3 pivotal trial evaluating cabozantinib in patients with previously treated HCC, comparing outcomes by duration of sorafenib treatment in patients whose only prior treatment was sorafenib and outcomes based on age. The findings showed that cabozantinib improved OS and PFS compared with placebo irrespective of duration of prior sorafenib treatment or age category.
|
•
|
In July 2018, we were added to Standard & Poor’s (S&P’s) MidCap 400 index and are classified under S&P’s Global Industry Classification Standard Biotechnology Sub-Industry index.
|
•
|
In July 2018, the NEJM published results from CELESTIAL, our phase 3 pivotal trial evaluating cabozantinib in patients with previously treated HCC. The data demonstrate that cabozantinib provided a statistically significant and clinically meaningful improvement in OS versus placebo.
|
•
|
In September 2018, NCCN updated its Clinical Practice Guidelines to include favorable new recommendations for CABOMETYX as a treatment for patients with advanced RCC, regardless of patient risk status. As part of this update, NCCN also designated CABOMETYX as the only preferred TKI treatment option for previously untreated patients with poor- or intermediate-risk, and the only preferred TKI treatment option for previously treated patients.
|
•
|
In September 2018, Ipsen received regulatory approval from Health Canada for CABOMETYX as a treatment in Canada for adult patients with advanced RCC who have received prior VEGF-targeted therapy. Health Canada’s approval of CABOMETYX was based on results from METEOR, our phase 3 trial in which CABOMETYX provided
|
•
|
In October 2018, we initiated COSMIC-311, a phase 3 pivotal trial evaluating cabozantinib in patients with RAI-refractory DTC who have progressed after up to two VEGFR-targeted therapies. This trial was informed by cabozantinib’s encouraging clinical activity in patients with RAI-refractory DTC in phase 1 and 2 studies for which updated data was presented at the 2018 Multidisciplinary Head and Neck Cancers Symposium in February 2018.
|
•
|
In October 2018, clinical data from cabozantinib were the subject of thirteen presentations at ESMO, including a poster presentation covering the results from the dose escalation stage of COSMIC-021, our phase 1b study evaluating the safety and tolerability of cabozantinib in combination with Roche’s atezolizumab in patients with locally advanced or metastatic solid tumors. Findings from the dose escalation phase of the trial demonstrate that the combination was well-tolerated and showed encouraging anti-tumor activity in patients with advanced RCC. In another poster presentation, data were presented from an analysis that evaluated the effect of PD-L1 expression on clinical outcomes with cabozantinib in advanced RCC from the CABOSUN and METEOR trials. This analysis showed that cabozantinib’s activity was independent of PD-L1 expression. Additionally, a separate retrospective analysis of RCC patients found that cabozantinib was active following prior treatment with immune checkpoint inhibitor therapy either alone or in combination with VEGF-targeted or other prior therapy.
|
•
|
In October 2018, Ipsen received approvals from both the Agência Nacional de Vigilância Sanitária in Brazil for CABOMETYX as a treatment for both previously treated and previously untreated advanced RCC and from the Taiwan Food and Drug Administration for CABOMETYX as a treatment for patients with advanced RCC who have received prior anti-angiogenic therapy.
|
•
|
In November 2018, Ipsen received regulatory approval from the EC for CABOMETYX as a treatment for HCC in adults who have previously been treated with sorafenib. The EC’s approval of CABOMETYX was based on results from CELESTIAL, our phase 3 pivotal trial evaluating cabozantinib in patients with previously treated HCC, which demonstrated a statistically significant and clinically meaningful improvement in OS versus placebo.
|
•
|
In December 2018, we initiated COSMIC-312, a phase 3 pivotal trial evaluating cabozantinib in combination with atezolizumab versus sorafenib in patients with previously untreated advanced HCC. We are sponsoring COSMIC-312, and Ipsen will co-fund the trial. Ipsen will have access to the results to support potential future regulatory submissions outside of the U.S. and Japan. Roche is providing atezolizumab free of charge.
|
•
|
In January 2019, we announced that our partner Daiichi Sankyo received approval from the MHLW for MINNEBRO as a treatment for patients with hypertension in Japan. MINNEBRO is a compound identified during our research collaboration with Daiichi Sankyo, which the companies entered into in March 2006, and has been subsequently developed by Daiichi Sankyo.
|
•
|
In January 2019, the FDA approved CABOMETYX as a treatment for patients with HCC who have been previously treated with sorafenib. The FDA’s approval of CABOMETYX was based on results from CELESTIAL, our phase 3 pivotal trial evaluating cabozantinib in patients with previously treated HCC, which demonstrated a statistically significant and clinically meaningful improvement in OS versus placebo.
|
•
|
In January 2019, the FDA accepted our IND for XL092, a next-generation oral TKI and the first compound to advance from our new discovery organization. The phase 1 dose escalation trial will evaluate its pharmacokinetics, safety and tolerability in patients with advanced solid tumors, with the primary objective of determining a dose for daily oral administration of XL092 suitable for further evaluation.
|
•
|
Net income for 2018 was
$690.1 million
, or
$2.32
per share, basic and
$2.21
per share, diluted, compared to
$154.2 million
, or
$0.52
per share, basic and
$0.49
per share diluted, for 2017.
|
•
|
Total revenues for 2018 increased to
$853.8 million
, compared to
$452.5 million
for 2017.
|
•
|
Net product revenues for 2018 increased to
$619.3 million
, compared to
$349.0 million
for 2017.
|
•
|
Research and development expenses for 2018 increased to
$182.3 million
, compared to
$112.2 million
for 2017.
|
•
|
Selling, general and administrative expenses for 2018 increased to
$206.4 million
, compared to
$159.4 million
for 2017.
|
•
|
Cash and investments increased to
$851.6 million
at
December 31, 2018
, compared to
$457.2 million
at
December 31, 2017
.
|
•
|
During the second quarter of 2018, Ipsen reached $150.0 million in cumulative net sales of cabozantinib, which resulted in an increase in the minimum royalty rate earned by us to 22% of net sales by Ipsen. Previously we had been entitled to receive a tiered royalty of 2% to 12%. Since reaching that milestone, we are entitled to receive a tiered royalty of 22% to 26% of annual net sales.
|
•
|
During the fourth quarter of 2018, we released substantially all of our valuation allowance against our deferred tax assets which resulted in a
$244.1 million
income tax benefit.
|
|
Year Ended December 31,
|
|
Percentage Change -
2018 v. 2017
|
|
Percentage Change -
2017 v. 2016
|
||||||||||||
|
2018
|
|
2017
|
|
2016
|
|
|
||||||||||
Net product revenues
|
$
|
619,279
|
|
|
$
|
349,008
|
|
|
135,375
|
|
|
77
|
%
|
|
158
|
%
|
|
Collaboration revenues
|
234,547
|
|
|
103,469
|
|
|
56,079
|
|
|
127
|
%
|
|
85
|
%
|
|||
Total revenues
|
$
|
853,826
|
|
|
$
|
452,477
|
|
|
$
|
191,454
|
|
|
89
|
%
|
|
136
|
%
|
|
Year Ended December 31,
|
|
Percentage Change -
2018 v. 2017 |
|
Percentage Change -
2017 v. 2016 |
||||||||||||
|
2018
|
|
2017
|
|
2016
|
|
|
||||||||||
CABOMETYX
|
$
|
599,946
|
|
|
$
|
324,000
|
|
|
$
|
93,481
|
|
|
85
|
%
|
|
247
|
%
|
COMETRIQ
|
19,333
|
|
|
25,008
|
|
|
41,894
|
|
|
(23
|
)%
|
|
(40
|
)%
|
|||
Net product revenues
|
$
|
619,279
|
|
|
$
|
349,008
|
|
|
$
|
135,375
|
|
|
77
|
%
|
|
158
|
%
|
|
Year Ended December 31,
|
|
Percentage Change -
2018 v. 2017 |
|
Percentage Change -
2017 v. 2016 |
||||||||||||
|
2018
|
|
2017
|
|
2016
|
|
|
||||||||||
Collaboration revenues:
|
|
|
|
|
|
|
|
|
|
|
|||||||
License revenues
(1)
|
$
|
192,188
|
|
|
$
|
96,637
|
|
|
$
|
56,286
|
|
|
99
|
%
|
|
72
|
%
|
Research and development service revenues
(2)
|
39,501
|
|
|
8,737
|
|
|
—
|
|
|
352
|
%
|
|
n/m
|
|
|||
Other collaboration revenues
(3)
|
2,858
|
|
|
(1,905
|
)
|
|
(207
|
)
|
|
n/m
|
|
|
820
|
%
|
|||
Total collaboration revenues
|
$
|
234,547
|
|
|
$
|
103,469
|
|
|
$
|
56,079
|
|
|
127
|
%
|
|
85
|
%
|
(1)
|
Upon the adoption of Topic 606 as of January 1, 2018, the allocation of proceeds from our collaboration partners, including upfront and milestone payments, between intellectual property licenses and research and development services as well as the resulting timing of recognition have changed. License revenues for the
year ended
December 31, 2018
included the immediate recognition of the portion of milestones that were allocated to the transfer of intellectual property licenses for those milestones for which it had become probable that a significant revenue reversal would not occur, as well as royalty revenues from Ipsen and Genentech. License revenues for the
years ended
December 31, 2017
and
2016
included the full recognition of substantive
|
(2)
|
Research and development service revenues for the
year ended
December 31, 2018
included the recognition of deferred revenue for the portion of the upfront and milestone payments that have been allocated to the research and development service performance obligations which are being amortized through early 2030, as well as development cost reimbursements earned on our collaboration agreements. As described above, prior to the adoption of Topic 606, we did not allocate any of our upfront payments or milestones to research and development services; therefore, Research and development service revenues for the
years ended
December 31, 2017
included only development cost reimbursements earned on our collaboration agreements.
|
(3)
|
Other collaboration revenues for the
year ended
December 31, 2018
included royalties we paid to GSK on Ipsen’s sales of products containing cabozantinib, the profit on the U.S. commercialization of COTELLIC from Genentech and product supply revenues. Other collaboration revenues for the years ended
years ended
December 31, 2017
and
2016
included only royalties we paid to pay GSK on Ipsen’s sales of products containing cabozantinib and product supply revenues, as the profits and losses on the U.S. commercialization of COTELLIC for the period were included in Selling, general and administrative expenses.
|
|
Year Ended December 31,
|
||||||||||
|
2018
|
|
2017
|
|
2016
|
||||||
Research and development expenses:
|
|
|
|
|
|
||||||
Development:
|
|
|
|
|
|
||||||
Clinical trial costs
|
$
|
66,434
|
|
|
$
|
40,315
|
|
|
$
|
35,947
|
|
Personnel expenses
|
48,114
|
|
|
30,076
|
|
|
22,936
|
|
|||
Consulting and outside services
|
9,693
|
|
|
8,492
|
|
|
8,176
|
|
|||
Other development costs
|
13,505
|
|
|
12,967
|
|
|
11,478
|
|
|||
Total development
|
137,746
|
|
|
91,850
|
|
|
78,537
|
|
|||
Drug discovery
(1)
|
21,944
|
|
|
6,334
|
|
|
1,220
|
|
|||
Other
(2)
|
22,567
|
|
|
13,987
|
|
|
16,210
|
|
|||
Total research and development expenses
|
$
|
182,257
|
|
|
$
|
112,171
|
|
|
$
|
95,967
|
|
(1)
|
Primarily includes personnel expenses, consulting and outside services and laboratory supplies for all periods presented and license costs for our collaboration and license agreements with Invenra and StemSynergy during the year ended December 31, 2018.
|
(2)
|
Includes stock-based compensation and the allocation of general corporate costs to research and development.
|
|
Year Ended December 31,
|
|
Percentage Change -
2018 v. 2017 |
|
Percentage Change -
2017 v. 2016 |
||||||||||||
|
2018
|
|
2017
|
|
2016
|
|
|
||||||||||
Selling, general and administrative expenses
|
$
|
206,366
|
|
|
$
|
159,362
|
|
|
$
|
116,145
|
|
|
29
|
%
|
|
37
|
%
|
|
Year Ended December 31,
|
|
Percentage Change -
2018 v. 2017 |
|
Percentage Change -
2017 v. 2016 |
||||||||||||
|
2018
|
|
2017
|
|
2016
|
|
|
||||||||||
Interest income
|
$
|
12,840
|
|
|
$
|
4,883
|
|
|
$
|
2,578
|
|
|
163
|
%
|
|
89
|
%
|
Interest expense
|
—
|
|
|
(8,679
|
)
|
|
(33,060
|
)
|
|
(100
|
)%
|
|
(74
|
)%
|
|||
Other, net
|
397
|
|
|
(3,537
|
)
|
|
(11,616
|
)
|
|
n/m
|
|
|
(70
|
)%
|
|||
Total other income (expenses), net
|
$
|
13,237
|
|
|
$
|
(7,333
|
)
|
|
$
|
(42,098
|
)
|
|
n/m
|
|
|
(83
|
)%
|
|
Year Ended December 31,
|
||||||||||
|
2018
|
|
2017
|
|
2016
|
||||||
Income tax benefit (provision)
|
$
|
237,978
|
|
|
$
|
(4,350
|
)
|
|
$
|
—
|
|
|
Year Ended December 31,
|
||||||||||
|
2018
|
|
2017
|
|
2016
|
||||||
Net cash provided by operating activities
|
$
|
415,720
|
|
|
$
|
165,611
|
|
|
$
|
210,404
|
|
Net cash (used in) provided by investing activities
|
$
|
(297,850
|
)
|
|
$
|
36,795
|
|
|
$
|
(214,548
|
)
|
Net cash provided by (used in) financing activities
|
$
|
9,691
|
|
|
$
|
(169,928
|
)
|
|
$
|
15,696
|
|
|
|
Payments Due by Period
|
||||||||||||||
Contractual Obligations
(1)
|
|
Total
|
|
Less than
1 year
|
|
1-3
Years
|
|
More than 3
Years
|
||||||||
Operating leases
|
|
28,187
|
|
|
2,794
|
|
|
5,727
|
|
|
19,666
|
|
||||
Purchase and other long-term obligations
(2)
|
|
27,143
|
|
|
24,067
|
|
|
2,908
|
|
|
168
|
|
||||
Total contractual cash obligations
|
|
$
|
55,330
|
|
|
$
|
26,861
|
|
|
$
|
8,635
|
|
|
$
|
19,834
|
|
(1)
|
In addition to the above, we have committed to make potential future milestone payments to Invenra or StemSynergy as part of our collaboration agreements with those parties. Payments under those agreements generally become due and payable only upon achievement of certain developmental, regulatory and sales-based milestones. Because the achievement of those milestones is neither probable nor reasonably estimable, such contingencies have not been recorded on our Consolidated Balance Sheets and have not been included in the table above. For more information about these obligations, see “Note 3. Collaboration Agreements” in our “Notes to Consolidated Financial Statements” contained in Part II, Item 8 of this Annual Report on Form 10-K.
|
(2)
|
Purchase obligations include firm purchase commitments related to manufacturing and maintenance of inventory, software services and other long term contractual obligations.
|
|
Page
|
|
December 31,
|
||||||
|
2018
|
|
2017
|
||||
ASSETS
|
|
|
|
||||
Current assets:
|
|
|
|
||||
Cash and cash equivalents
|
$
|
314,775
|
|
|
$
|
183,164
|
|
Short-term investments
|
378,559
|
|
|
204,607
|
|
||
Short-term restricted cash and investments
|
—
|
|
|
504
|
|
||
Trade receivables, net
|
162,771
|
|
|
77,300
|
|
||
Other receivables
|
16,056
|
|
|
3,892
|
|
||
Inventory, net
|
9,838
|
|
|
6,657
|
|
||
Prepaid expenses and other current assets
|
15,017
|
|
|
8,750
|
|
||
Total current assets
|
897,016
|
|
|
484,874
|
|
||
Long-term investments
|
157,187
|
|
|
64,255
|
|
||
Long-term restricted cash and investments
|
1,100
|
|
|
4,646
|
|
||
Property and equipment, net
|
50,897
|
|
|
25,743
|
|
||
Operating lease right-of-use assets
|
5,867
|
|
|
—
|
|
||
Deferred tax assets, net
|
244,111
|
|
|
—
|
|
||
Goodwill
|
63,684
|
|
|
63,684
|
|
||
Other long-term assets
|
2,424
|
|
|
12,092
|
|
||
Total assets
|
$
|
1,422,286
|
|
|
$
|
655,294
|
|
LIABILITIES AND STOCKHOLDERS’ EQUITY
|
|
|
|
||||
Current liabilities:
|
|
|
|
||||
Accounts payable
|
$
|
10,901
|
|
|
$
|
9,575
|
|
Accrued compensation and benefits
|
32,142
|
|
|
21,073
|
|
||
Accrued clinical trial liabilities
|
18,231
|
|
|
19,849
|
|
||
Rebates and fees due to customers
|
14,954
|
|
|
7,565
|
|
||
Accrued collaboration liabilities
|
7,419
|
|
|
8,974
|
|
||
Current portion of deferred revenue
|
—
|
|
|
31,984
|
|
||
Other current liabilities
|
21,825
|
|
|
16,150
|
|
||
Total current liabilities
|
105,472
|
|
|
115,170
|
|
||
Long-term portion of deferred revenue
|
15,897
|
|
|
238,520
|
|
||
Long-term portion of lease liabilities
|
12,178
|
|
|
14,938
|
|
||
Other long-term liabilities
|
1,286
|
|
|
1,705
|
|
||
Total liabilities
|
134,833
|
|
|
370,333
|
|
||
Commitments
|
|
|
|
||||
Stockholders’ equity:
|
|
|
|
||||
Preferred stock, $0.001 par value, 10,000,000 shares authorized and no shares issued
|
—
|
|
|
—
|
|
||
Common stock, $0.001 par value; 400,000,000 shares authorized; issued and outstanding: 299,876,080 and 296,209,426 at December 31, 2018 and 2017, respectively
|
300
|
|
|
296
|
|
||
Additional paid-in capital
|
2,168,217
|
|
|
2,114,184
|
|
||
Accumulated other comprehensive loss
|
(701
|
)
|
|
(347
|
)
|
||
Accumulated deficit
|
(880,363
|
)
|
|
(1,829,172
|
)
|
||
Total stockholders’ equity
|
1,287,453
|
|
|
284,961
|
|
||
Total liabilities and stockholders’ equity
|
$
|
1,422,286
|
|
|
$
|
655,294
|
|
|
Year Ended December 31,
|
||||||||||
|
2018
|
|
2017
|
|
2016
|
||||||
Revenues:
|
|
|
|
|
|
||||||
Net product revenues
|
$
|
619,279
|
|
|
$
|
349,008
|
|
|
$
|
135,375
|
|
Collaboration revenue
|
234,547
|
|
|
103,469
|
|
|
56,079
|
|
|||
Total revenues
|
853,826
|
|
|
452,477
|
|
|
191,454
|
|
|||
Operating expenses:
|
|
|
|
|
|
||||||
Cost of goods sold
|
26,348
|
|
|
15,066
|
|
|
6,552
|
|
|||
Research and development
|
182,257
|
|
|
112,171
|
|
|
95,967
|
|
|||
Selling, general and administrative
|
206,366
|
|
|
159,362
|
|
|
116,145
|
|
|||
Restructuring (recovery) charge
|
—
|
|
|
(32
|
)
|
|
914
|
|
|||
Total operating expenses
|
414,971
|
|
|
286,567
|
|
|
219,578
|
|
|||
Income (loss) from operations
|
438,855
|
|
|
165,910
|
|
|
(28,124
|
)
|
|||
Other income (expense), net:
|
|
|
|
|
|
||||||
Interest income
|
12,840
|
|
|
4,883
|
|
|
2,578
|
|
|||
Interest expense
|
—
|
|
|
(8,679
|
)
|
|
(33,060
|
)
|
|||
Other, net
|
397
|
|
|
(3,537
|
)
|
|
(11,616
|
)
|
|||
Total other income (expense), net:
|
13,237
|
|
|
(7,333
|
)
|
|
(42,098
|
)
|
|||
Income (loss) before income taxes
|
452,092
|
|
|
158,577
|
|
|
(70,222
|
)
|
|||
Income tax benefit (provision)
|
237,978
|
|
|
(4,350
|
)
|
|
—
|
|
|||
Net income (loss)
|
$
|
690,070
|
|
|
$
|
154,227
|
|
|
$
|
(70,222
|
)
|
Net income (loss) per share, basic
|
$
|
2.32
|
|
|
$
|
0.52
|
|
|
$
|
(0.28
|
)
|
Net income (loss) per share, diluted
|
$
|
2.21
|
|
|
$
|
0.49
|
|
|
$
|
(0.28
|
)
|
Shares used in computing net income (loss) per share, basic
|
297,892
|
|
|
293,588
|
|
|
250,531
|
|
|||
Shares used in computing net income (loss) per share, diluted
|
312,803
|
|
|
312,003
|
|
|
250,531
|
|
|
Year Ended December 31,
|
||||||||||
|
2018
|
|
2017
|
|
2016
|
||||||
Net income (loss)
|
$
|
690,070
|
|
|
$
|
154,227
|
|
|
$
|
(70,222
|
)
|
Other comprehensive income (loss)
(1)
|
(354
|
)
|
|
69
|
|
|
(184
|
)
|
|||
Comprehensive income (loss)
|
$
|
689,716
|
|
|
$
|
154,296
|
|
|
$
|
(70,406
|
)
|
(1)
|
Other comprehensive income (loss) consisted solely of unrealized gains or losses, net, on available-for-sale securities arising during the periods presented. There were nominal or
no
reclassification adjustments to net income (loss) resulting from realized gains or losses on the sale of securities. During the
year ended
December 31, 2018
, there was a tax benefit of
$0.2 million
related to other comprehensive income as a result of the release of our valuation allowance for our deferred tax assets; there was
no
income tax benefit or provision related to other comprehensive income (loss) during the remaining periods presented.
|
|
Common Stock
|
|
Additional
Paid-in Capital |
|
Accumulated
Other Comprehensive Loss |
|
Accumulated
Deficit |
|
Total
Stockholders’ Equity (Deficit) |
|||||||||||||
|
Shares
|
|
Amount
|
|
|
|
|
|||||||||||||||
Balance at December 31, 2015
|
227,960,943
|
|
|
$
|
228
|
|
|
1,772,123
|
|
|
(232
|
)
|
|
(1,912,925
|
)
|
|
$
|
(140,806
|
)
|
|||
Net loss
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(70,222
|
)
|
|
(70,222
|
)
|
|||||
Other comprehensive loss
|
—
|
|
|
—
|
|
|
—
|
|
|
(184
|
)
|
|
—
|
|
|
(184
|
)
|
|||||
Issuance of common stock in settlement of convertible notes
|
54,009,279
|
|
|
54
|
|
|
253,026
|
|
|
—
|
|
|
—
|
|
|
253,080
|
|
|||||
Issuance of common stock under equity incentive and stock purchase plans
|
7,953,576
|
|
|
8
|
|
|
24,530
|
|
|
—
|
|
|
—
|
|
|
24,538
|
|
|||||
Stock-based compensation
|
—
|
|
|
—
|
|
|
22,912
|
|
|
—
|
|
|
—
|
|
|
22,912
|
|
|||||
Balance at December 31, 2016
|
289,923,798
|
|
|
290
|
|
|
2,072,591
|
|
|
(416
|
)
|
|
(1,983,147
|
)
|
|
89,318
|
|
|||||
Adoption of Accounting Standards Update (ASU) No. 2016-09,
Compensation—Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting
|
—
|
|
|
—
|
|
|
252
|
|
|
—
|
|
|
(252
|
)
|
|
—
|
|
|||||
Net income
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
154,227
|
|
|
154,227
|
|
|||||
Other comprehensive income
|
—
|
|
|
—
|
|
|
—
|
|
|
69
|
|
|
—
|
|
|
69
|
|
|||||
Issuance of common stock under equity incentive and stock purchase plans
|
5,408,177
|
|
|
5
|
|
|
17,404
|
|
|
—
|
|
|
—
|
|
|
17,409
|
|
|||||
Issuance of common stock on exercise of warrants
|
877,451
|
|
|
1
|
|
|
(1
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Stock-based compensation
|
—
|
|
|
—
|
|
|
23,938
|
|
|
—
|
|
|
—
|
|
|
23,938
|
|
|||||
Balance at December 31, 2017
|
296,209,426
|
|
|
296
|
|
|
2,114,184
|
|
|
(347
|
)
|
|
(1,829,172
|
)
|
|
284,961
|
|
|||||
Adoption of ASU No. 2014-09,
Revenue from Contracts with Customers (Topic 606)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
258,505
|
|
|
258,505
|
|
|||||
Adoption of ASU No. 2016-02,
Leases (Topic 842)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
234
|
|
|
234
|
|
|||||
Net income
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
690,070
|
|
|
690,070
|
|
|||||
Other comprehensive loss
|
—
|
|
|
—
|
|
|
—
|
|
|
(354
|
)
|
|
—
|
|
|
(354
|
)
|
|||||
Issuance of common stock under equity incentive and stock purchase plans
|
3,666,654
|
|
|
4
|
|
|
13,407
|
|
|
—
|
|
|
—
|
|
|
13,411
|
|
|||||
Stock-based compensation
|
—
|
|
|
—
|
|
|
40,626
|
|
|
—
|
|
|
—
|
|
|
40,626
|
|
|||||
Balance at December 31, 2018
|
299,876,080
|
|
|
$
|
300
|
|
|
$
|
2,168,217
|
|
|
$
|
(701
|
)
|
|
$
|
(880,363
|
)
|
|
$
|
1,287,453
|
|
|
Year Ended December 31,
|
||||||||||
|
2018
|
|
2017
|
|
2016
|
||||||
Net income (loss)
|
$
|
690,070
|
|
|
$
|
154,227
|
|
|
$
|
(70,222
|
)
|
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
|
|
|
|
|
|
||||||
Depreciation and amortization
|
4,915
|
|
|
1,187
|
|
|
1,002
|
|
|||
Stock-based compensation
|
40,626
|
|
|
23,938
|
|
|
22,912
|
|
|||
401(k) matching contributions made in common stock
|
3,696
|
|
|
1,640
|
|
|
1,036
|
|
|||
Amortization of right-of-use assets
|
2,854
|
|
|
—
|
|
|
—
|
|
|||
Deferred taxes
|
(244,111
|
)
|
|
—
|
|
|
—
|
|
|||
Loss on extinguishment of debt
|
—
|
|
|
6,239
|
|
|
13,901
|
|
|||
Amortization of debt discounts and debt issuance costs
|
—
|
|
|
182
|
|
|
8,432
|
|
|||
Interest paid in kind
|
—
|
|
|
(11,825
|
)
|
|
8,008
|
|
|||
Gain on other equity investments
|
(209
|
)
|
|
(2,980
|
)
|
|
(2,494
|
)
|
|||
Other
|
(2,358
|
)
|
|
(51
|
)
|
|
562
|
|
|||
Changes in operating assets and liabilities:
|
|
|
|
|
|
||||||
Trade receivables, net
|
(85,471
|
)
|
|
(43,299
|
)
|
|
(38,680
|
)
|
|||
Other receivables
|
(4,410
|
)
|
|
2,460
|
|
|
3,362
|
|
|||
Inventory, net
|
(3,181
|
)
|
|
(3,319
|
)
|
|
(722
|
)
|
|||
Prepaid expenses and other current assets
|
(3,029
|
)
|
|
(3,268
|
)
|
|
(1,610
|
)
|
|||
Other long-term assets
|
(1,086
|
)
|
|
430
|
|
|
1,077
|
|
|||
Accounts payable
|
856
|
|
|
3,010
|
|
|
164
|
|
|||
Accrued compensation and benefits
|
11,069
|
|
|
739
|
|
|
16,705
|
|
|||
Accrued clinical trial liabilities
|
(1,618
|
)
|
|
5,718
|
|
|
(3,940
|
)
|
|||
Rebates and fees due customers
|
7,389
|
|
|
4,145
|
|
|
3,866
|
|
|||
Accrued collaboration liability
|
(1,555
|
)
|
|
6,928
|
|
|
(10,938
|
)
|
|||
Deferred revenue
|
271
|
|
|
13,745
|
|
|
256,759
|
|
|||
Long-term portion of lease liabilities
|
(1,225
|
)
|
|
14,938
|
|
|
—
|
|
|||
Other current and long-term liabilities
|
2,227
|
|
|
(9,173
|
)
|
|
1,224
|
|
|||
Net cash provided by operating activities
|
415,720
|
|
|
165,611
|
|
|
210,404
|
|
|||
Cash flows from investing activities:
|
|
|
|
|
|
||||||
Purchases of property and equipment
|
(33,297
|
)
|
|
(21,143
|
)
|
|
(1,703
|
)
|
|||
Proceeds from sale of property and equipment
|
308
|
|
|
164
|
|
|
97
|
|
|||
Purchases of investments
|
(557,832
|
)
|
|
(319,090
|
)
|
|
(369,187
|
)
|
|||
Proceeds from maturities of investments
|
280,826
|
|
|
336,590
|
|
|
151,485
|
|
|||
Proceeds from sale of investments
|
11,936
|
|
|
37,294
|
|
|
2,266
|
|
|||
Proceeds from other equity investments
|
209
|
|
|
2,980
|
|
|
2,494
|
|
|||
Net cash (used in) provided by investing activities
|
(297,850
|
)
|
|
36,795
|
|
|
(214,548
|
)
|
|||
Cash flows from financing activities:
|
|
|
|
|
|
||||||
Proceeds from exercise of stock options
|
12,076
|
|
|
17,555
|
|
|
25,327
|
|
|||
Proceeds from employee stock purchase plan
|
5,202
|
|
|
4,868
|
|
|
2,187
|
|
|||
Taxes paid related to net share settlement of equity awards
|
(7,574
|
)
|
|
(6,563
|
)
|
|
(4,108
|
)
|
|||
Principal payments on financing lease obligation
|
(13
|
)
|
|
—
|
|
|
—
|
|
|||
Principal repayments of debt
|
—
|
|
|
(185,788
|
)
|
|
(575
|
)
|
|||
Payments on conversion of convertible notes
|
—
|
|
|
—
|
|
|
(7,135
|
)
|
|||
Net cash provided by (used in) financing activities
|
9,691
|
|
|
(169,928
|
)
|
|
15,696
|
|
|||
Net increase in cash, cash equivalents and restricted cash
|
127,561
|
|
|
32,478
|
|
|
11,552
|
|
|||
Cash, cash equivalents and restricted cash at beginning of period
|
188,314
|
|
|
155,836
|
|
|
144,284
|
|
|||
Cash, cash equivalents and restricted cash at end of period
|
$
|
315,875
|
|
|
$
|
188,314
|
|
|
$
|
155,836
|
|
|
Year Ended December 31,
|
||||||||||
|
2018
|
|
2017
|
|
2016
|
||||||
Supplemental cash flow disclosure:
|
|
|
|
|
|
||||||
Cash paid for interest
|
$
|
—
|
|
|
$
|
20,460
|
|
|
$
|
21,044
|
|
Cash paid for taxes
|
$
|
10,677
|
|
|
$
|
538
|
|
|
$
|
190
|
|
Non-cash investing and financing activities:
|
|
|
|
|
|
||||||
Property and equipment deemed to have been acquired in build-to-suit lease
|
$
|
—
|
|
|
$
|
14,530
|
|
|
$
|
—
|
|
Right-of-use assets obtained in exchange for lease obligations
(1)
|
$
|
17,180
|
|
|
—
|
|
|
$
|
—
|
|
|
Unpaid liabilities incurred to acquire Property and equipment
|
$
|
802
|
|
|
$
|
524
|
|
|
$
|
—
|
|
Issuance of common stock in settlement of convertible notes
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
286,925
|
|
(1)
|
Amounts for the
year ended
December 31, 2018
include the transition adjustment for the adoption of Topic 842.
|
|
December 31, 2017
|
|
Adjustments Due to the Adoption of Topic 606
|
|
Adjustments Due to the Adoption of Topic 842
|
|
January 1, 2018
|
||||||||
Contract assets: unbilled collaboration revenue, gross:
|
|
|
|
|
|
|
|
||||||||
Current portion
|
$
|
—
|
|
|
$
|
9,588
|
|
|
$
|
—
|
|
|
$
|
9,588
|
|
Long-term portion
|
$
|
—
|
|
|
$
|
12,247
|
|
|
$
|
—
|
|
|
$
|
12,247
|
|
Other receivables
|
$
|
3,892
|
|
|
$
|
—
|
|
|
$
|
7,743
|
|
|
$
|
11,635
|
|
Property and equipment, net
|
$
|
25,743
|
|
|
$
|
—
|
|
|
$
|
(14,530
|
)
|
|
$
|
11,213
|
|
Operating lease right-of-use assets
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
8,579
|
|
|
$
|
8,579
|
|
Contract liabilities: deferred revenue, gross:
|
|
|
|
|
|
|
|
||||||||
Current portion
|
$
|
31,984
|
|
|
$
|
(23,591
|
)
|
|
$
|
—
|
|
|
$
|
8,393
|
|
Long-term portion
|
$
|
238,520
|
|
|
$
|
(213,079
|
)
|
|
$
|
—
|
|
|
$
|
25,441
|
|
Operating lease liabilities:
|
|
|
|
|
|
|
|
||||||||
Other current liabilities
(1)
|
$
|
16,150
|
|
|
$
|
—
|
|
|
$
|
3,173
|
|
|
$
|
19,323
|
|
Long-term portion of lease liabilities
(2)
|
$
|
14,938
|
|
|
$
|
—
|
|
|
$
|
(1,615
|
)
|
|
$
|
13,323
|
|
Accumulated deficit
|
$
|
(1,829,172
|
)
|
|
$
|
258,505
|
|
|
$
|
234
|
|
|
$
|
(1,570,433
|
)
|
|
Year Ended December 31, 2018
|
||||||||||||||
|
As Reported
|
|
Effect of Adoption of Topic 606 Higher / (Lower)
|
|
Effect of Adoption of Topic 842 Higher / (Lower)
|
|
Balances Without the Adoption of Topic 606 or 842
|
||||||||
Collaboration revenues
|
$
|
234,547
|
|
|
$
|
(35,882
|
)
|
|
$
|
—
|
|
|
$
|
270,429
|
|
Total revenues
|
$
|
853,826
|
|
|
$
|
(35,882
|
)
|
|
$
|
—
|
|
|
$
|
889,708
|
|
Selling, general and administrative expenses
|
$
|
206,366
|
|
|
$
|
—
|
|
|
$
|
1,204
|
|
|
$
|
205,162
|
|
Total operating expenses
|
$
|
414,971
|
|
|
$
|
—
|
|
|
$
|
1,204
|
|
|
$
|
413,767
|
|
Interest expense
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(631
|
)
|
|
$
|
(631
|
)
|
Total other income (expense), net
|
$
|
13,237
|
|
|
$
|
—
|
|
|
$
|
631
|
|
|
$
|
12,606
|
|
Income before income taxes
|
$
|
452,092
|
|
|
$
|
(35,882
|
)
|
|
$
|
(573
|
)
|
|
$
|
488,547
|
|
Income tax benefit (provision)
|
$
|
237,978
|
|
|
$
|
(48,325
|
)
|
|
$
|
73
|
|
|
$
|
286,230
|
|
Net income
|
$
|
690,070
|
|
|
$
|
(84,207
|
)
|
|
$
|
(500
|
)
|
|
$
|
774,777
|
|
Net income per share, basic
|
$
|
2.32
|
|
|
$
|
(0.28
|
)
|
|
$
|
—
|
|
|
$
|
2.60
|
|
Net income per share, diluted
|
$
|
2.21
|
|
|
$
|
(0.27
|
)
|
|
$
|
—
|
|
|
$
|
2.48
|
|
Asset Category
|
|
Estimated Useful Life
|
Lab equipment
|
|
5 years
|
Furniture and fixtures
|
|
7 years
|
Office equipment
|
|
5 years
|
Computer equipment and software
|
|
3 years
|
Leasehold improvements
|
|
7 to 15 years
|
|
Year Ended December 31,
|
||||||||||
|
2018
|
|
2017
|
|
2016
|
||||||
Product revenues:
|
|
|
|
|
|
||||||
Gross product revenues
|
$
|
738,529
|
|
|
$
|
402,569
|
|
|
$
|
151,499
|
|
Discounts and allowances
|
(119,250
|
)
|
|
(53,561
|
)
|
|
(16,124
|
)
|
|||
Net product revenues
|
619,279
|
|
|
349,008
|
|
|
135,375
|
|
|||
Collaboration revenues:
|
|
|
|
|
|
||||||
License revenues
(1)
|
192,188
|
|
|
96,637
|
|
|
56,286
|
|
|||
Research and development service revenues
(2)
|
39,501
|
|
|
8,737
|
|
|
—
|
|
|||
Other collaboration revenues
(3)
|
2,858
|
|
|
(1,905
|
)
|
|
(207
|
)
|
|||
Total collaboration revenues
|
234,547
|
|
|
103,469
|
|
|
56,079
|
|
|||
Total revenues
|
$
|
853,826
|
|
|
$
|
452,477
|
|
|
$
|
191,454
|
|
(1)
|
Upon the adoption of Topic 606 as of January 1, 2018, the allocation of proceeds from our collaboration partners, including upfront and milestone payments, between intellectual property licenses and research and development services as well as the resulting timing of recognition have changed. License revenues for the
year ended
December 31, 2018
included the immediate recognition of the portion of milestones that were allocated to the transfer of intellectual property licenses for those milestones for which it had become probable that a significant revenue reversal would not occur, as well as royalty revenues from Ipsen and Genentech. License revenues for the
years ended
December 31, 2017
and
2016
included the full recognition of substantive milestones achieved during the period, recognition of deferred revenues from upfront payments and a non-substantive milestone, which were being amortized over various periods, as well as royalty revenues from Ipsen and Genentech.
|
(2)
|
Research and development service revenues for the
year ended
December 31, 2018
included the recognition of deferred revenue for the portion of the upfront and milestone payments that have been allocated to the research and development service performance obligations which are being amortized through early 2030, as well as development cost reimbursements earned on our collaboration agreements. As described above, prior to the adoption of Topic 606, we did not allocate any of our upfront payments or milestones to research and development services; therefore, Research and development service revenues for the
years ended
December 31, 2017
included only development cost reimbursements earned on our collaboration agreements.
|
(3)
|
Other collaboration revenues for the
year ended
December 31, 2018
included royalties we paid to GSK on Ipsen’s sales of products containing cabozantinib, the profit on the U.S. commercialization of COTELLIC from Genentech and product supply revenues. Other collaboration revenues for the years ended
years ended
December 31, 2017
and
2016
included only royalties we paid to GSK on Ipsen’s sales of products containing cabozantinib and product supply revenues, as the profits and losses on the U.S. commercialization of COTELLIC for the period were included in Selling, general and administrative expenses.
|
|
Year Ended December 31,
|
||||||||||
|
2018
|
|
2017
|
|
2016
|
||||||
CABOMETYX
|
$
|
599,946
|
|
|
$
|
324,000
|
|
|
$
|
93,481
|
|
COMETRIQ
|
19,333
|
|
|
25,008
|
|
|
41,894
|
|
|||
Net product revenues
|
$
|
619,279
|
|
|
$
|
349,008
|
|
|
$
|
135,375
|
|
|
Year Ended December 31,
|
|||||||||||||||||||
|
2018
|
|
2017
|
|
2016
|
|||||||||||||||
|
Dollars
|
|
Percent of total
|
|
Dollars
|
|
Percent of total
|
|
Dollars
|
|
Percent of total
|
|||||||||
Ipsen
|
$
|
182,879
|
|
|
21
|
%
|
|
$
|
69,792
|
|
|
15
|
%
|
|
$
|
33,252
|
|
|
17
|
%
|
Caremark L.L.C.
|
110,698
|
|
|
13
|
%
|
|
73,921
|
|
|
16
|
%
|
|
17,746
|
|
|
9
|
%
|
|||
Affiliates of McKesson Corporation
|
99,916
|
|
|
12
|
%
|
|
48,662
|
|
|
11
|
%
|
|
13,143
|
|
|
7
|
%
|
|||
Accredo Health, Incorporated
|
81,028
|
|
|
9
|
%
|
|
50,716
|
|
|
11
|
%
|
|
16,631
|
|
|
9
|
%
|
|||
Diplomat Specialty Pharmacy
|
74,244
|
|
|
9
|
%
|
|
83,059
|
|
|
18
|
%
|
|
63,826
|
|
|
33
|
%
|
|||
Others, individually less than 10% of Total revenues for all periods presented
|
305,061
|
|
|
36
|
%
|
|
126,327
|
|
|
29
|
%
|
|
46,856
|
|
|
25
|
%
|
|||
Total revenues
|
$
|
853,826
|
|
|
100
|
%
|
|
$
|
452,477
|
|
|
100
|
%
|
|
$
|
191,454
|
|
|
100
|
%
|
|
Chargebacks and Discounts for Prompt Payment
|
|
Other Customer Credits/Fees and Co-pay Assistance
|
|
Rebates
|
|
Returns
|
|
Total
|
||||||||||
Balance at December 31, 2016
|
$
|
1,802
|
|
|
$
|
794
|
|
|
$
|
2,627
|
|
|
$
|
351
|
|
|
$
|
5,574
|
|
Provision related to sales made in:
|
|
|
|
|
|
|
|
|
|
||||||||||
Current period
|
33,310
|
|
|
7,301
|
|
|
14,390
|
|
|
—
|
|
|
55,001
|
|
|||||
Prior periods
|
(817
|
)
|
|
—
|
|
|
(624
|
)
|
|
—
|
|
|
(1,441
|
)
|
|||||
Payments and customer credits issued
|
(32,367
|
)
|
|
(6,300
|
)
|
|
(10,623
|
)
|
|
(351
|
)
|
|
(49,641
|
)
|
|||||
Balance at December 31, 2017
|
1,928
|
|
|
1,795
|
|
|
5,770
|
|
|
—
|
|
|
9,493
|
|
|||||
Provision related to sales made in:
|
|
|
|
|
|
|
|
|
|
||||||||||
Current period
|
75,543
|
|
|
13,015
|
|
|
31,040
|
|
|
2
|
|
|
119,600
|
|
|||||
Prior periods
|
(403
|
)
|
|
206
|
|
|
(153
|
)
|
|
—
|
|
|
(350
|
)
|
|||||
Payments and customer credits issued
|
(74,746
|
)
|
|
(11,978
|
)
|
|
(24,741
|
)
|
|
(2
|
)
|
|
(111,467
|
)
|
|||||
Balance at December 31, 2018
|
$
|
2,322
|
|
|
$
|
3,038
|
|
|
$
|
11,916
|
|
|
$
|
—
|
|
|
$
|
17,276
|
|
|
Contract Assets: Unbilled Collaboration Revenue
|
|
Contract Liabilities: Deferred Revenue
|
||||||||||||
|
Current Portion
|
|
Long-term Portion
|
|
Current Portion
|
|
Long-term Portion
|
||||||||
Balance at December 31, 2017
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
31,984
|
|
|
$
|
238,520
|
|
Adoption of Topic 606
|
9,588
|
|
|
12,247
|
|
|
(23,591
|
)
|
|
(213,079
|
)
|
||||
Balance at January 1, 2018
|
9,588
|
|
|
12,247
|
|
|
8,393
|
|
|
25,441
|
|
||||
Increases as a result of a change in transaction price and recognition of revenues as services are performed
|
37,881
|
|
|
4,545
|
|
|
—
|
|
|
—
|
|
||||
Transfer to receivables from contract assets recognized at the beginning of the period
|
(46,052
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Increases as a result of the deferral of milestones achieved in period, excluding amounts recognized as revenue
|
—
|
|
|
—
|
|
|
1,718
|
|
|
7,237
|
|
||||
Revenue recognized that was included in the contract liability balance at the beginning of the period
|
—
|
|
|
—
|
|
|
(8,683
|
)
|
|
—
|
|
||||
Other adjustments
(1)
|
(1,417
|
)
|
|
(16,792
|
)
|
|
(1,428
|
)
|
|
(16,781
|
)
|
||||
Balance at December 31, 2018
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
15,897
|
|
(1)
|
Includes reclassification of deferred revenue from long-term to current and adjustments made due to netting of contract assets and liabilities by collaboration agreement.
|
|
Year Ended December 31,
|
||||||||||
|
2018
|
|
2017
|
|
2016
|
||||||
Ipsen collaboration revenues
|
$
|
182,879
|
|
|
$
|
69,792
|
|
|
$
|
33,252
|
|
|
Year Ended December 31,
|
||||||
|
2018
|
|
2017
|
||||
Takeda collaboration revenues
|
$
|
18,020
|
|
|
$
|
14,779
|
|
|
Year Ended December 31,
|
||||||||||
|
2018
|
|
2017
|
|
2016
|
||||||
Royalties accruing to GSK
|
$
|
23,950
|
|
|
$
|
12,413
|
|
|
$
|
4,334
|
|
|
Year Ended December 31,
|
||||||||||
|
2018
|
|
2017
|
|
2016
|
||||||
Profits and losses on U.S. commercialization
|
$
|
8,084
|
|
|
$
|
(2,140
|
)
|
|
$
|
8,771
|
|
Royalty revenues on ex-U.S. sales
|
$
|
5,564
|
|
|
$
|
6,398
|
|
|
$
|
2,827
|
|
|
Year Ended December 31,
|
||||||||||
|
2018
|
|
2017
|
|
2016
|
||||||
Daiichi Sankyo collaboration revenues
|
$
|
20,000
|
|
|
$
|
—
|
|
|
$
|
15,000
|
|
|
Year Ended December 31,
|
||||||||||
|
2018
|
|
2017
|
|
2016
|
||||||
Merck collaboration revenues
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
5,000
|
|
|
Year Ended December 31,
|
||||||||||
|
2018
|
|
2017
|
|
2016
|
||||||
BMS collaboration revenues
|
$
|
—
|
|
|
$
|
12,500
|
|
|
$
|
—
|
|
|
December 31, 2018
|
|
December 31, 2017
|
|
December 31, 2016
|
||||||
Cash and cash equivalents
|
$
|
314,775
|
|
|
$
|
183,164
|
|
|
$
|
151,686
|
|
Restricted cash included in short-term restricted cash and investments
|
—
|
|
|
504
|
|
|
—
|
|
|||
Restricted cash included in long-term restricted cash and investments
|
1,100
|
|
|
4,646
|
|
|
4,150
|
|
|||
Cash, cash equivalents, and restricted cash as reported within the accompanying Consolidated Statements of Cash Flows
|
$
|
315,875
|
|
|
$
|
188,314
|
|
|
$
|
155,836
|
|
|
December 31, 2018
|
||||||||||||||
|
Amortized
Cost
|
|
Gross
Unrealized
Gains
|
|
Gross
Unrealized
Losses
|
|
Fair Value
|
||||||||
Investments available-for-sale:
|
|
|
|
|
|
|
|
||||||||
Money market funds
|
$
|
47,744
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
47,744
|
|
Commercial paper
|
381,134
|
|
|
—
|
|
|
(1
|
)
|
|
381,133
|
|
||||
Corporate bonds
|
344,741
|
|
|
180
|
|
|
(857
|
)
|
|
344,064
|
|
||||
U.S. Treasury and government sponsored enterprises
|
55,224
|
|
|
2
|
|
|
(25
|
)
|
|
55,201
|
|
||||
Total investments available-for-sale
|
828,843
|
|
|
182
|
|
|
(883
|
)
|
|
828,142
|
|
||||
Cash and restricted cash
|
6,883
|
|
|
—
|
|
|
—
|
|
|
6,883
|
|
||||
Certificates of deposit
|
16,596
|
|
|
—
|
|
|
—
|
|
|
16,596
|
|
||||
Total cash and investments
|
$
|
852,322
|
|
|
$
|
182
|
|
|
$
|
(883
|
)
|
|
$
|
851,621
|
|
|
December 31, 2017
|
||||||||||||||
|
Amortized
Cost
|
|
Gross
Unrealized
Gains
|
|
Gross
Unrealized
Losses
|
|
Fair Value
|
||||||||
Investments available-for-sale:
|
|
|
|
|
|
|
|
||||||||
Money market funds
|
$
|
45,478
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
45,478
|
|
Commercial paper
|
199,647
|
|
|
—
|
|
|
—
|
|
|
199,647
|
|
||||
Corporate bonds
|
179,336
|
|
|
18
|
|
|
(332
|
)
|
|
179,022
|
|
||||
U.S. Treasury and government sponsored enterprises
|
16,295
|
|
|
—
|
|
|
(32
|
)
|
|
16,263
|
|
||||
Total investments available-for-sale
|
440,756
|
|
|
18
|
|
|
(364
|
)
|
|
440,410
|
|
||||
Cash and restricted cash
|
3,268
|
|
|
—
|
|
|
—
|
|
|
3,268
|
|
||||
Certificates of deposit
|
13,498
|
|
|
—
|
|
|
—
|
|
|
13,498
|
|
||||
Total cash and investments
|
$
|
457,522
|
|
|
$
|
18
|
|
|
$
|
(364
|
)
|
|
$
|
457,176
|
|
|
December 31, 2018
|
||||||||||||||||||||||
|
In an Unrealized Loss Position Less than 12 Months
|
|
In an Unrealized Loss Position 12 Months or Greater
|
|
Total
|
||||||||||||||||||
|
Fair Value
|
|
Gross
Unrealized Losses |
|
Fair Value
|
|
Gross
Unrealized Losses |
|
Fair Value
|
|
Gross
Unrealized Losses |
||||||||||||
Corporate bonds
|
$
|
236,162
|
|
|
$
|
(606
|
)
|
|
$
|
39,627
|
|
|
$
|
(251
|
)
|
|
$
|
275,789
|
|
|
$
|
(857
|
)
|
U.S. Treasury and government sponsored enterprises
|
28,105
|
|
|
(16
|
)
|
|
9,182
|
|
|
(9
|
)
|
|
37,287
|
|
|
(25
|
)
|
||||||
Commercial paper
|
7,091
|
|
|
(1
|
)
|
|
—
|
|
|
—
|
|
|
7,091
|
|
|
(1
|
)
|
||||||
Total
|
$
|
271,358
|
|
|
$
|
(623
|
)
|
|
$
|
48,809
|
|
|
$
|
(260
|
)
|
|
$
|
320,167
|
|
|
$
|
(883
|
)
|
|
December 31, 2017
|
||||||||||||||||||||||
|
In an Unrealized Loss Position Less than 12 Months
|
|
In an Unrealized Loss Position 12 Months or Greater
|
|
Total
|
||||||||||||||||||
|
Fair Value
|
|
Gross
Unrealized Losses |
|
Fair Value
|
|
Gross
Unrealized Losses |
|
Fair Value
|
|
Gross
Unrealized Losses |
||||||||||||
Corporate bonds
|
$
|
140,746
|
|
|
$
|
(296
|
)
|
|
$
|
20,047
|
|
|
$
|
(36
|
)
|
|
$
|
160,793
|
|
|
$
|
(332
|
)
|
U.S. Treasury and government sponsored enterprises
|
13,611
|
|
|
(23
|
)
|
|
2,651
|
|
|
(9
|
)
|
|
16,262
|
|
|
(32
|
)
|
||||||
Total
|
$
|
154,357
|
|
|
$
|
(319
|
)
|
|
$
|
22,698
|
|
|
$
|
(45
|
)
|
|
$
|
177,055
|
|
|
$
|
(364
|
)
|
|
December 31,
|
||||||
|
2018
|
|
2017
|
||||
Maturing in one year or less
|
$
|
674,455
|
|
|
$
|
377,155
|
|
Maturing after one year through five years
|
153,687
|
|
|
63,255
|
|
||
Total investments available-for-sale
|
$
|
828,142
|
|
|
$
|
440,410
|
|
|
December 31,
|
||||||
|
2018
|
|
2017
|
||||
Raw materials
|
$
|
1,922
|
|
|
$
|
498
|
|
Work in process
|
6,170
|
|
|
3,997
|
|
||
Finished goods
|
3,836
|
|
|
2,854
|
|
||
Total
|
$
|
11,928
|
|
|
$
|
7,349
|
|
|
|
|
|
||||
Balance Sheet classification:
|
|
|
|
||||
Inventory
|
$
|
9,838
|
|
|
$
|
6,657
|
|
Inventory included in Other long-term assets
|
2,090
|
|
|
692
|
|
||
Total
|
$
|
11,928
|
|
|
$
|
7,349
|
|
|
December 31,
2018 |
|
December 31,
2017 |
||||
Leasehold improvements
|
$
|
33,941
|
|
|
$
|
4,715
|
|
Computer equipment and software
|
15,022
|
|
|
14,146
|
|
||
Furniture and fixtures
|
12,709
|
|
|
1,609
|
|
||
Laboratory equipment
|
5,668
|
|
|
5,959
|
|
||
Construction in progress
|
866
|
|
|
22,114
|
|
||
|
68,206
|
|
|
48,543
|
|
||
Less: accumulated depreciation and amortization
|
(17,309
|
)
|
|
(22,800
|
)
|
||
Property and equipment, net
|
$
|
50,897
|
|
|
$
|
25,743
|
|
|
Year Ended December 31,
|
||||||||||
|
2018
|
|
2017
|
|
2016
|
||||||
Research and development
|
$
|
13,115
|
|
|
$
|
7,569
|
|
|
$
|
9,366
|
|
Selling, general and administrative
|
27,511
|
|
|
16,369
|
|
|
13,546
|
|
|||
Total stock-based compensation
|
$
|
40,626
|
|
|
$
|
23,938
|
|
|
$
|
22,912
|
|
|
Year Ended December 31,
|
|||||||
|
2018
|
|
2017
|
|
2016
|
|||
Stock options:
|
|
|
|
|
|
|||
Risk-free interest rate
|
2.81
|
%
|
|
1.98
|
%
|
|
1.15
|
%
|
Dividend yield
|
—
|
%
|
|
—
|
%
|
|
—
|
%
|
Volatility
|
55
|
%
|
|
59
|
%
|
|
76
|
%
|
Expected life
|
4.4 years
|
|
|
4.5 years
|
|
|
4.4 years
|
|
ESPP:
|
|
|
|
|
|
|||
Risk-free interest rate
|
1.93
|
%
|
|
1.09
|
%
|
|
0.55
|
%
|
Dividend yield
|
—
|
%
|
|
—
|
%
|
|
—
|
%
|
Volatility
|
53
|
%
|
|
58
|
%
|
|
65
|
%
|
Expected life
|
6 months
|
|
|
6 months
|
|
|
6 months
|
|
|
Shares
|
|
Weighted
Average
Exercise Price
|
|
Weighted
Average
Remaining
Contractual
Term
|
|
Aggregate
Intrinsic
Value
|
|||||
Stock options outstanding at December 31, 2017
|
22,208,446
|
|
|
$
|
6.83
|
|
|
|
|
|
||
Granted
|
3,238,473
|
|
|
$
|
19.40
|
|
|
|
|
|
||
Exercised
|
(2,466,579
|
)
|
|
$
|
4.90
|
|
|
|
|
|
||
Forfeited
|
(288,197
|
)
|
|
$
|
15.71
|
|
|
|
|
|
||
Expired
|
(18,081
|
)
|
|
$
|
20.64
|
|
|
|
|
|
||
Stock options outstanding at December 31, 2018
|
22,674,062
|
|
|
$
|
8.71
|
|
|
3.7 years
|
|
$
|
254,201
|
|
Exercisable at December 31, 2018
|
16,463,202
|
|
|
$
|
5.65
|
|
|
3.0 years
|
|
$
|
229,699
|
|
|
Shares
|
|
Weighted
Average
Grant Date
Fair Value
|
|
Weighted
Average
Remaining
Contractual
Term
|
|
Aggregate
Intrinsic
Value
|
|||||
RSUs outstanding at December 31, 2017
|
3,762,990
|
|
|
$
|
17.76
|
|
|
|
|
|
||
Awarded
|
2,519,425
|
|
|
$
|
18.46
|
|
|
|
|
|
||
Vested and released
|
(1,081,339
|
)
|
|
$
|
16.05
|
|
|
|
|
|
||
Forfeited
|
(343,742
|
)
|
|
$
|
18.99
|
|
|
|
|
|
||
RSUs outstanding at December 31, 2018
|
4,857,334
|
|
|
$
|
18.42
|
|
|
2.1 years
|
|
$
|
94,427
|
|
|
Year Ended December 31,
|
||||||||||
|
2018
|
|
2017
|
|
2016
|
||||||
Current:
|
|
|
|
|
|
||||||
Federal
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
State
|
(6,133
|
)
|
|
(4,350
|
)
|
|
—
|
|
|||
Total current tax expense
|
(6,133
|
)
|
|
(4,350
|
)
|
|
—
|
|
|||
Deferred:
|
|
|
|
|
|
||||||
Federal
|
238,675
|
|
|
—
|
|
|
—
|
|
|||
State
|
5,436
|
|
|
—
|
|
|
—
|
|
|||
Total deferred tax expense
|
244,111
|
|
|
—
|
|
|
—
|
|
|||
Income tax benefit (provision)
|
$
|
237,978
|
|
|
$
|
(4,350
|
)
|
|
$
|
—
|
|
|
Year Ended December 31,
|
||||||||||
|
2018
|
|
2017
|
|
2016
|
||||||
U.S. federal income tax (provision) benefit at statutory rate
|
$
|
(94,939
|
)
|
|
$
|
(53,916
|
)
|
|
$
|
23,876
|
|
State tax expense
|
(4,690
|
)
|
|
(8,282
|
)
|
|
(6,520
|
)
|
|||
Change in valuation allowance
|
315,394
|
|
|
34,266
|
|
|
(6,377
|
)
|
|||
Research credits
|
18,308
|
|
|
—
|
|
|
—
|
|
|||
Stock-based compensation
|
5,998
|
|
|
20,548
|
|
|
(3,155
|
)
|
|||
Non-deductible interest
|
—
|
|
|
(1,367
|
)
|
|
(2,680
|
)
|
|||
Debt extinguishment
|
—
|
|
|
—
|
|
|
(4,726
|
)
|
|||
Other
|
(2,093
|
)
|
|
4,401
|
|
|
(418
|
)
|
|||
Income tax benefit (provision)
|
$
|
237,978
|
|
|
$
|
(4,350
|
)
|
|
$
|
—
|
|
|
December 31,
|
||||||
|
2018
|
|
2017
|
||||
Deferred tax assets:
|
|
|
|
||||
Net operating loss carryforwards
|
$
|
146,701
|
|
|
$
|
244,205
|
|
Tax credit carryforwards
|
98,467
|
|
|
66,770
|
|
||
Book over tax depreciation and amortization
|
29,929
|
|
|
39,472
|
|
||
Amortization of deferred stock compensation – non-qualified
|
11,366
|
|
|
8,966
|
|
||
Accruals and reserves not currently deductible
|
10,425
|
|
|
4,914
|
|
||
Deferred revenue
|
5,474
|
|
|
53,543
|
|
||
Other assets
|
1,140
|
|
|
1,088
|
|
||
Total deferred tax assets
|
303,502
|
|
|
418,958
|
|
||
Valuation allowance
|
(58,112
|
)
|
|
(418,958
|
)
|
||
Net deferred tax assets
|
245,390
|
|
|
—
|
|
||
Deferred tax liabilities:
|
|
|
|
||||
Operating lease right-of-use assets
|
(1,279
|
)
|
|
—
|
|
||
Total deferred tax liabilities
|
(1,279
|
)
|
|
—
|
|
||
Net deferred taxes
|
$
|
244,111
|
|
|
$
|
—
|
|
|
Year Ended December 31,
|
||||||||||
|
2018
|
|
2017
|
|
2016
|
||||||
Beginning balance
|
$
|
79,342
|
|
|
$
|
61,809
|
|
|
$
|
88,638
|
|
Change relating to prior year provision
|
(4,254
|
)
|
|
247
|
|
|
(29,110
|
)
|
|||
Change relating to current year provision
|
1,083
|
|
|
17,378
|
|
|
2,304
|
|
|||
Reductions based on the lapse of the applicable statutes of limitations
|
(111
|
)
|
|
(92
|
)
|
|
(23
|
)
|
|||
Ending balance
|
$
|
76,060
|
|
|
$
|
79,342
|
|
|
$
|
61,809
|
|
|
Year Ended December 31,
|
||||||||||
|
2018
|
|
2017
|
|
2016
|
||||||
Numerator:
|
|
|
|
|
|
||||||
Net income (loss)
|
$
|
690,070
|
|
|
$
|
154,227
|
|
|
$
|
(70,222
|
)
|
Net income allocated to participating securities
|
—
|
|
|
(367
|
)
|
|
—
|
|
|||
Net income (loss) allocable to common stock for basic net income (loss) per share
|
690,070
|
|
|
153,860
|
|
|
(70,222
|
)
|
|||
Adjustment to net income allocated to participating securities
|
—
|
|
|
22
|
|
|
—
|
|
|||
Net income (loss) allocable to common stock for diluted net income (loss) per share
|
$
|
690,070
|
|
|
$
|
153,882
|
|
|
$
|
(70,222
|
)
|
Denominator:
|
|
|
|
|
|
||||||
Weighted-average shares of common stock outstanding used in computing basic net income (loss) per share
|
297,892
|
|
|
293,588
|
|
|
250,531
|
|
|||
Dilutive securities
|
14,911
|
|
|
18,415
|
|
|
—
|
|
|||
Weighted-average shares of common stock outstanding and dilutive securities used in computing diluted net income (loss) per share
|
312,803
|
|
|
312,003
|
|
|
250,531
|
|
|||
|
|
|
|
|
|
||||||
Net income (loss) per share, basic
|
$
|
2.32
|
|
|
$
|
0.52
|
|
|
$
|
(0.28
|
)
|
Net income (loss) per share, diluted
|
$
|
2.21
|
|
|
$
|
0.49
|
|
|
$
|
(0.28
|
)
|
|
Year Ended December 31,
|
|||||||
|
2018
|
|
2017
|
|
2016
|
|||
Outstanding stock options, unvested RSUs and ESPP contributions
|
3,968
|
|
|
1,645
|
|
|
27,568
|
|
Secured Convertible Notes due 2018 held by entities associated with Deerfield Management Company, L.P. (Deerfield Notes)
|
—
|
|
|
—
|
|
|
33,890
|
|
2014 Warrants
|
—
|
|
|
—
|
|
|
1,000
|
|
Total
|
3,968
|
|
|
1,645
|
|
|
62,458
|
|
|
December 31, 2018
|
||||||||||
|
Level 1
|
|
Level 2
|
|
Total
|
||||||
Money market funds
|
$
|
47,744
|
|
|
$
|
—
|
|
|
$
|
47,744
|
|
Commercial paper
|
—
|
|
|
381,133
|
|
|
381,133
|
|
|||
Corporate bonds
|
—
|
|
|
344,064
|
|
|
344,064
|
|
|||
U.S. Treasury and government sponsored enterprises
|
—
|
|
|
55,201
|
|
|
55,201
|
|
|||
Total investments available-for-sale
|
47,744
|
|
|
780,398
|
|
|
828,142
|
|
|||
Certificates of deposit
|
—
|
|
|
16,596
|
|
|
16,596
|
|
|||
Total financial assets carried at fair value
|
$
|
47,744
|
|
|
$
|
796,994
|
|
|
$
|
844,738
|
|
|
December 31, 2017
|
||||||||||
|
Level 1
|
|
Level 2
|
|
Total
|
||||||
Money market funds
|
$
|
45,478
|
|
|
$
|
—
|
|
|
$
|
45,478
|
|
Commercial paper
|
—
|
|
|
199,647
|
|
|
199,647
|
|
|||
Corporate bonds
|
—
|
|
|
179,022
|
|
|
179,022
|
|
|||
U.S. Treasury and government sponsored enterprises
|
—
|
|
|
16,263
|
|
|
16,263
|
|
|||
Total investments available-for-sale
|
45,478
|
|
|
394,932
|
|
|
440,410
|
|
|||
Certificates of deposit
|
—
|
|
|
13,498
|
|
|
13,498
|
|
|||
Total financial assets carried at fair value
|
$
|
45,478
|
|
|
$
|
408,430
|
|
|
$
|
453,908
|
|
|
December 31,
2018 |
|
December 31, 2017
|
||||
Operating lease liabilities:
|
|
|
|
||||
Current portion included in Other current liabilities
|
$
|
2,738
|
|
|
$
|
540
|
|
Long-term portion of lease liabilities
|
12,099
|
|
|
408
|
|
||
Total operating lease liabilities
|
14,837
|
|
|
948
|
|
||
Financing lease liabilities:
|
|
|
|
||||
Financing obligation for build-to-suit lease
|
—
|
|
|
14,530
|
|
||
Current portion included in Other current liabilities
|
49
|
|
|
—
|
|
||
Long-term portion of lease liabilities
|
79
|
|
|
—
|
|
||
Total financing lease liabilities
|
128
|
|
|
14,530
|
|
||
Total lease liabilities
|
$
|
14,965
|
|
|
$
|
15,478
|
|
|
Year Ended December 31,
|
||||||||||
|
2018
|
|
2017
|
|
2016
|
||||||
Operating lease cost
|
$
|
4,189
|
|
|
$
|
3,944
|
|
|
$
|
8,620
|
|
Variable lease cost
|
1,661
|
|
|
2,216
|
|
|
1,056
|
|
|||
Sublease income
|
—
|
|
|
(1,225
|
)
|
|
(3,553
|
)
|
|||
Total lease costs
|
$
|
5,850
|
|
|
$
|
4,935
|
|
|
$
|
6,123
|
|
|
Operating leases
|
||
Years ending December 31,
|
|
||
2019
|
$
|
2,794
|
|
2020
|
2,823
|
|
|
2021
|
2,904
|
|
|
2022
|
3,000
|
|
|
2023
|
3,082
|
|
|
Thereafter
|
13,584
|
|
|
Total lease payments
|
28,187
|
|
|
Less:
|
|
||
Present value adjustment
|
(5,180
|
)
|
|
Tenant improvement reimbursements
|
(8,170
|
)
|
|
Operating lease liabilities
|
$
|
14,837
|
|
|
Quarter Ended
|
||||||||||||||
|
December 31,
|
|
September 30,
|
|
June 30,
|
|
March 31,
|
||||||||
2018:
|
|
|
|
|
|
|
|
||||||||
Total revenues
(1)
|
$
|
228,602
|
|
|
$
|
225,397
|
|
|
$
|
186,108
|
|
|
$
|
213,719
|
|
Gross profit
(2)
|
$
|
168,873
|
|
|
$
|
155,586
|
|
|
$
|
139,839
|
|
|
$
|
128,633
|
|
Income from operations
|
$
|
111,602
|
|
|
$
|
125,176
|
|
|
$
|
85,770
|
|
|
$
|
116,307
|
|
Net income
|
$
|
360,089
|
|
|
$
|
126,630
|
|
|
$
|
87,494
|
|
|
$
|
115,857
|
|
Net income per share, basic
|
$
|
1.20
|
|
|
$
|
0.42
|
|
|
$
|
0.29
|
|
|
$
|
0.39
|
|
Net income per share, diluted
|
$
|
1.15
|
|
|
$
|
0.41
|
|
|
$
|
0.28
|
|
|
$
|
0.37
|
|
2017:
|
|
|
|
|
|
|
|
||||||||
Total revenues
|
$
|
120,072
|
|
|
$
|
152,510
|
|
|
$
|
99,008
|
|
|
$
|
80,887
|
|
Gross profit
(2)
|
$
|
91,520
|
|
|
$
|
91,758
|
|
|
$
|
84,990
|
|
|
$
|
65,674
|
|
Income from operations
|
$
|
37,431
|
|
|
$
|
81,180
|
|
|
$
|
27,113
|
|
|
$
|
20,186
|
|
Net income
|
$
|
38,489
|
|
|
$
|
81,382
|
|
|
$
|
17,656
|
|
|
$
|
16,700
|
|
Net income per share, basic
|
$
|
0.13
|
|
|
$
|
0.28
|
|
|
$
|
0.06
|
|
|
$
|
0.06
|
|
Net income per share, diluted
|
$
|
0.12
|
|
|
$
|
0.26
|
|
|
$
|
0.06
|
|
|
$
|
0.05
|
|
(1)
|
Total revenues for the three months ended March 31, 2018 have been adjusted to reflect the reclassification of the
$1.4 million
profit related to the profit sharing arrangement with Genentech for the commercialization of COTELLIC. For three months ended March 31, 2018, the net profit had been classified as Selling, general and administrative expenses as we were expecting an overall loss for the year ended December 31, 2018. During the three months ended June 30, 2018, we determined that the U.S. commercialization of COTELLIC would result in a profit for the year ended December 31, 2018 and therefore, we reclassified the profit for the three months ended March 31, 2018 from Selling, general and administrative expenses to Collaboration revenues to be consistent with presentation for the three and six months ended June 30, 2018. See “Note 3. Collaboration Agreements” for more information on our collaboration agreement with Genentech.
|
(2)
|
Gross profit is computed as Net product revenues less Cost of goods sold.
|
ITEM 10.
|
DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE
|
Plan Category
|
|
Number of
securities to be issued upon exercise of outstanding
options, warrants and rights
|
|
Weighted-average exercise price of outstanding
options, warrants and
rights
|
|
Number of securities remaining available for future issuance under equity compensation plans (excluding securities reflected in column (a))
|
||||
|
|
(a)
|
|
(b)
|
|
(c)
|
||||
Equity compensation plans approved by stockholders
(1)
|
|
27,242,369
|
|
|
$
|
7.10
|
|
(2)
|
19,415,875
|
|
Equity compensation plans not approved by stockholders
(3)
|
|
289,027
|
|
|
$
|
14.34
|
|
(4)
|
571,674
|
|
Total
|
|
27,531,396
|
|
|
$
|
7.17
|
|
|
19,987,549
|
|
(1 )
|
Equity plans approved by our shareholders are the 2000 Plan, the 2011 Plan, the 2014 Plan, the Director Plan, the 2017 Plan and the ESPP. As of
December 31, 2018
, a total of
4,722,008
shares of our common stock remained available for issuance under the ESPP, and up to a maximum of 246,410 shares of our common stock may be purchased in the current purchase period. The shares issuable pursuant to our ESPP are not included in the number of shares to be issued pursuant to rights outstanding or and the weighted-average exercise price of such rights as of
December 31, 2018
, as those numbers are not known.
|
(2)
|
The weighted-average exercise price takes into account the shares subject to outstanding restricted stock units (RSUs) which have no exercise price. The weighted-average exercise price, excluding such outstanding RSUs, is $8.61.
|
(3)
|
Represents shares of our common stock issuable pursuant to the 2016 Plan and our 401(k) Plan.
|
(4)
|
The weighted-average exercise price takes into account the shares subject to outstanding RSUs, which have no exercise price. The weighted-average exercise price, excluding such outstanding RSUs, is $19.49.
|
(a)
|
The following documents are being filed as part of this report:
|
(1)
|
The following financial statements and the Report of Independent Registered Public Accounting Firm are included in Part II, Item 8:
|
|
Page
|
(2)
|
All financial statement schedules are omitted because the information is inapplicable or presented in the Notes to Consolidated Financial Statements.
|
(3)
|
The following Exhibits are filed as part of this report.
|
Exhibit
Number
|
|
Exhibit Description
|
|
Incorporation by Reference
|
|
Filed
Herewith
|
||||||
Form
|
|
File Number
|
|
Exhibit/
Appendix
Reference
|
|
Filing Date
|
|
|||||
3.1
|
|
|
10-K
|
|
000-30235
|
|
3.1
|
|
3/10/2010
|
|
|
|
3.2
|
|
|
10-K
|
|
000-30235
|
|
3.2
|
|
3/10/2010
|
|
|
|
3.3
|
|
|
8-K
|
|
000-30235
|
|
3.1
|
|
5/25/2012
|
|
|
|
3.4
|
|
|
8-K
|
|
000-30235
|
|
3.2
|
|
10/15/2014
|
|
|
|
3.5
|
|
|
8-K
|
|
000-30235
|
|
3.1
|
|
10/15/2014
|
|
|
|
3.6
|
|
|
8-K
|
|
000-30235
|
|
3.1
|
|
2/21/2019
|
|
|
|
4.1
|
|
|
S-1,
as amended
|
|
333-96335
|
|
4.1
|
|
4/7/2000
|
|
|
|
10.1†
|
|
|
S-1,
as amended
|
|
333-96335
|
|
10.1
|
|
3/17/2000
|
|
|
|
10.2
†
|
|
|
10-Q
|
|
000-30235
|
|
10.1
|
|
5/3/2007
|
|
|
|
10.3
†
|
|
|
10-Q
|
|
000-30235
|
|
10.2
|
|
11/8/2004
|
|
|
|
10.4
†
|
|
|
8-K
|
|
000-30235
|
|
10.1
|
|
12/15/2004
|
|
|
|
10.5
†
|
|
|
10-K
|
|
000-30235
|
|
10.6
|
|
2/20/2014
|
|
|
Exhibit
Number
|
|
Exhibit Description
|
|
Incorporation by Reference
|
|
Filed
Herewith
|
||||||
Form
|
|
File Number
|
|
Exhibit/
Appendix
Reference
|
|
Filing Date
|
|
|||||
10.6
†
|
|
|
10-K
|
|
000-30235
|
|
10.7
|
|
2/22/2011
|
|
|
|
10.7
†
|
|
|
Schedule 14A
|
|
000-30235
|
|
A
|
|
4/13/2016
|
|
|
|
10.8
†
|
|
|
|
|
|
|
|
|
|
|
X
|
|
10.9
†
|
|
|
10-Q
|
|
000-30235
|
|
10.3
|
|
8/4/2011
|
|
|
|
10.10
†
|
|
|
8-K
|
|
000-30235
|
|
10.1
|
|
5/29/2014
|
|
X
|
|
10.11
†
|
|
|
10-Q
|
|
000-30235
|
|
10.2
|
|
7/31/2014
|
|
|
|
10.12
†
|
|
|
10-Q
|
|
000-30235
|
|
10.4
|
|
7/31/2014
|
|
|
|
10.13
†
|
|
|
10-Q
|
|
000-30235
|
|
10.5
|
|
7/31/2014
|
|
|
|
10.14
†
|
|
|
8-K
|
|
000-30235
|
|
10.1
|
|
10/16/2014
|
|
|
|
10.15
†
|
|
|
|
|
|
|
|
|
|
|
X
|
|
10.16
†
|
|
|
8-K
|
|
000-30235
|
|
10.2
|
|
11/22/2016
|
|
|
|
10.17
†
|
|
|
8-K
|
|
000-30235
|
|
10.2
|
|
11/22/2016
|
|
|
|
10.18
†
|
|
|
10-K
|
|
000-30235
|
|
10.20
|
|
2/26/2018
|
|
|
|
10.19
†
|
|
|
10-K
|
|
000-30235
|
|
10.21
|
|
2/26/2018
|
|
|
|
10.20
†
|
|
|
10-K
|
|
000-30235
|
|
10.22
|
|
2/26/2018
|
|
|
|
10.21
†
|
|
|
10-K
|
|
000-30235
|
|
10.23
|
|
2/26/2018
|
|
|
|
10.22
†
|
|
|
10-K
|
|
000-30235
|
|
10.24
|
|
2/26/2018
|
|
|
|
10.23
†
|
|
|
10-K
|
|
000-30235
|
|
10.25
|
|
2/26/2018
|
|
|
|
10.24
†
|
|
|
10-Q
|
|
000-30235
|
|
10.43
|
|
8/5/2004
|
|
|
|
10.25
†
|
|
|
10-Q
|
|
000-30235
|
|
10.5
|
|
11/10/2015
|
|
|
Exhibit
Number
|
|
Exhibit Description
|
|
Incorporation by Reference
|
|
Filed
Herewith
|
||||||
Form
|
|
File Number
|
|
Exhibit/
Appendix
Reference
|
|
Filing Date
|
|
|||||
10.26
†
|
|
|
8-K
|
|
000-30235
|
|
10.1
|
|
6/26/2006
|
|
|
|
10.27
†
|
|
|
10-Q
|
|
000-30235
|
|
10.4
|
|
5/1/2014
|
|
|
|
10.28
†
|
|
|
10-K
|
|
000-30235
|
|
10.24
|
|
2/29/2016
|
|
|
|
10.29
†
|
|
|
10-K
|
|
000-30235
|
|
10.26
|
|
2/27/2017
|
|
|
|
10.30
†
|
|
|
10-Q
|
|
000-30235
|
|
10.1
|
|
11/4/2010
|
|
|
|
10.31
†
|
|
|
8-K
|
|
000-30235
|
|
10.1
|
|
2/16/2018
|
|
|
|
10.32
†
|
|
|
|
|
|
|
|
|
|
|
X
|
|
10.33
†
|
|
|
10-Q
|
|
000-30235
|
|
10.5
|
|
5/2/2018
|
|
|
|
10.34
|
|
|
10-Q
|
|
000-30235
|
|
10.1
|
|
8/2/2017
|
|
|
|
10.35
|
|
|
10-K
|
|
000-30235
|
|
10.39
|
|
2/26/2018
|
|
|
|
10.36
|
|
|
10-Q
|
|
000-30235
|
|
10.2
|
|
8/1/2018
|
|
|
|
10.37*
|
|
|
10-K
|
|
000-30235
|
|
10.45
|
|
2/27/2017
|
|
|
|
10.38
|
|
|
10-K
|
|
000-30235
|
|
10.46
|
|
2/27/2017
|
|
|
Exhibit
Number
|
|
Exhibit Description
|
|
Incorporation by Reference
|
|
Filed
Herewith
|
||||||
Form
|
|
File Number
|
|
Exhibit/
Appendix
Reference
|
|
Filing Date
|
|
|||||
10.39
|
|
|
10-K
|
|
000-30235
|
|
10.47
|
|
2/27/2017
|
|
|
|
10.40**
|
|
|
|
|
|
|
|
|
|
|
X
|
|
10.41*
|
|
|
10-Q/A
|
|
000-30235
|
|
10.3
|
|
9/30/2016
|
|
|
|
10.42*
|
|
|
10-K
|
|
000-30235
|
|
10.49
|
|
2/27/2017
|
|
|
|
10.43*
|
|
|
10-Q
|
|
000-30235
|
|
10.2
|
|
11/1/2017
|
|
|
|
10.44*
|
|
|
10-K
|
|
000-30235
|
|
10.46
|
|
2/26/2018
|
|
|
|
10.45*
|
|
|
10-Q/A
|
|
000-30235
|
|
10.4
|
|
9/30/2016
|
|
|
|
10.46*
|
|
|
10-K
|
|
000-30235
|
|
10.48
|
|
2/26/2018
|
|
|
|
10.47*
|
|
|
10-K
|
|
000-30235
|
|
10.51
|
|
2/27/2017
|
|
|
|
10.48*
|
|
|
10-K
|
|
000-30235
|
|
10.52
|
|
2/27/2017
|
|
|
Exhibit
Number
|
|
Exhibit Description
|
|
Incorporation by Reference
|
|
Filed
Herewith
|
||||||
Form
|
|
File Number
|
|
Exhibit/
Appendix
Reference
|
|
Filing Date
|
|
|||||
10.49
|
|
|
10-Q
|
|
000-30235
|
|
10.5
|
|
8/5/2010
|
|
|
|
10.50 *
|
|
|
10-Q
|
|
000-30235
|
|
10.5
|
|
8/2/2017
|
|
|
|
10.51*
|
|
|
10-Q/A
|
|
000-30235
|
|
10.1
|
|
7/14/2017
|
|
|
|
10.52*
|
|
|
10-Q
|
|
000-30235
|
|
10.1
|
|
8/1/2018
|
|
|
|
10.53*
|
|
|
10-Q
|
|
000-30235
|
|
10.2
|
|
5/1/2017
|
|
|
|
10.54*
|
|
|
10-Q
|
|
000-30235
|
|
10.3
|
|
5/1/2017
|
|
|
|
10.55*
|
|
|
10-Q
|
|
000-30235
|
|
10.1
|
|
11/1/2018
|
|
|
|
10.56*
|
|
|
10-Q
|
|
000-30235
|
|
10.2
|
|
11/1/2018
|
|
|
|
10.57*
|
|
|
10-Q
|
|
000-30235
|
|
10.3
|
|
11/1/2018
|
|
|
|
21.1
|
|
|
|
|
|
|
|
|
|
|
X
|
|
23.1
|
|
|
|
|
|
|
|
|
|
|
X
|
|
24.1
|
|
|
|
|
|
|
|
|
|
|
X
|
|
31.1
|
|
|
|
|
|
|
|
|
|
|
X
|
Exhibit
Number
|
|
Exhibit Description
|
|
Incorporation by Reference
|
|
Filed
Herewith
|
||||||
Form
|
|
File Number
|
|
Exhibit/
Appendix
Reference
|
|
Filing Date
|
|
|||||
31.2
|
|
|
|
|
|
|
|
|
|
|
X
|
|
32.1‡
|
|
|
|
|
|
|
|
|
|
|
X
|
|
101.INS
|
|
XBRL Instance Document
|
|
|
|
|
|
|
|
|
|
X
|
101.SCH
|
|
XBRL Taxonomy Extension Schema Document
|
|
|
|
|
|
|
|
|
|
X
|
101.CAL
|
|
XBRL Taxonomy Extension Calculation Linkbase Document
|
|
|
|
|
|
|
|
|
|
X
|
101.DEF
|
|
XBRL Taxonomy Extension Definition Linkbase
|
|
|
|
|
|
|
|
|
|
X
|
101.LAB
|
|
XBRL Taxonomy Extension Labels Linkbase Document
|
|
|
|
|
|
|
|
|
|
X
|
101.PRE
|
|
XBRL Taxonomy Extension Presentation Linkbase Document
|
|
|
|
|
|
|
|
|
|
X
|
†
|
Management contract or compensatory plan.
|
*
|
Confidential treatment granted for certain portions of this exhibit.
|
**
|
Confidential treatment requested for certain portions of this exhibit.
|
‡
|
This certification accompanies this Annual Report on Form 10-K, is not deemed filed with the SEC and is not to be incorporated by reference into any filing of the Company under the Securities Act of 1933, as amended, or the Securities Exchange Act of 1934, as amended (whether made before or after the date of this Annual Report on Form 10-K), irrespective of any general incorporation language contained in such filing.
|
|
|
E
XELIXIS
, I
NC
.
|
|
|
|
|
|
February 22, 2019
|
|
By:
|
/s/ M
ICHAEL
M. M
ORRISSEY
|
Date
|
|
|
Michael M. Morrissey, Ph.D.
|
|
|
|
President and Chief Executive Officer
|
Signatures
|
|
Title
|
|
Date
|
|
|
|
||
/s/ M
ICHAEL
M. M
ORRISSEY
|
|
Director, President and
Chief Executive Officer
|
|
February 22, 2019
|
Michael M. Morrissey, Ph.D.
|
|
(Principal Executive Officer)
|
|
|
|
|
|
||
/s/ C
HRISTOPHER
J. S
ENNER
|
|
Executive Vice President and
Chief Financial Officer
|
|
February 22, 2019
|
Christopher J. Senner
|
|
(Principal Financial and
Accounting Officer)
|
|
|
|
|
|
||
/s/ S
TELIOS
P
APADOPOULOS
|
|
Chairman of the Board
|
|
February 22, 2019
|
Stelios Papadopoulos, Ph.D.
|
|
|
|
|
|
|
|
||
/s/ C
HARLES
C
OHEN
|
|
Director
|
|
February 22, 2019
|
Charles Cohen, Ph.D.
|
|
|
|
|
|
|
|
|
|
/s/ C
ARL
B. F
ELDBAUM
|
|
Director
|
|
February 22, 2019
|
Carl B. Feldbaum, Esq.
|
|
|
|
|
|
|
|
|
|
/s/ M
ARIA
C. F
REIRE
|
|
Director
|
|
February 22, 2019
|
Maria C. Freire, Ph.D.
|
|
|
|
|
Signatures
|
|
Title
|
|
Date
|
|
|
|
||
/s/ A
LAN
M. G
ARBER
|
|
Director
|
|
February 22, 2019
|
Alan M. Garber, M.D., Ph.D.
|
|
|
|
|
|
|
|
|
|
/s/ V
INCENT
T. M
ARCHESI
|
|
Director
|
|
February 22, 2019
|
Vincent T. Marchesi, M.D., Ph.D.
|
|
|
|
|
|
|
|
||
/s/ G
EORGE
P
OSTE
|
|
Director
|
|
February 22, 2019
|
George Poste, DVM, Ph.D., FRS
|
|
|
|
|
|
|
|
||
/s/ G
EORGE
A. S
CANGOS
|
|
Director
|
|
February 22, 2019
|
George A. Scangos, Ph.D.
|
|
|
|
|
|
|
|
|
|
/s/ J
ULIE
A. S
MITH
|
|
Director
|
|
February 22, 2019
|
Julie A. Smith
|
|
|
|
|
|
|
|
||
/s/ L
ANCE
W
ILLSEY
|
|
Director
|
|
February 22, 2019
|
Lance Willsey, M.D.
|
|
|
|
|
|
|
|
||
/s/ J
ACK
L. W
YSZOMIERSKI
|
|
Director
|
|
February 22, 2019
|
Jack L. Wyszomierski
|
|
|
|
|
Board of Directors
|
Retainer Fee
|
|
$50,000
|
|
Additional Chair Retainer Fee
|
|
$30,000
|
|
|
Meeting Fee
12
|
|
$2,500
|
|
|
Audit Committee
|
Retainer Fee
|
|
$10,000
|
|
Additional Chair Retainer Fee
|
|
$15,000
|
|
|
Meeting Fee
13
|
|
$1,000
|
|
|
Compensation Committee
|
Retainer Fee
|
|
$8,000
|
|
Additional Chair Retainer Fee
|
|
$12,000
|
|
|
Meeting Fee
13
|
|
$1,000
|
|
|
Nominating & Corporate Governance Committee
|
Retainer Fee
|
|
$5,000
|
|
Additional Chair Retainer Fee
|
|
$10,000
|
|
|
Meeting Fee
14
|
|
$1,000
|
|
|
Research & Development Committee
|
Retainer Fee
|
|
$5,000
|
|
Additional Chair Retainer Fee
|
|
$10,000
|
|
|
Meeting Fee
14
|
|
$1,000
|
|
1
|
Meetings for which minutes are generated count toward the meeting threshold to determine when Meeting Fees are to be paid.
|
2
|
Meeting Fee paid for all meetings in excess of eight meetings.
|
3
|
Meeting Fee paid for all meetings in excess of seven meetings.
|
4
|
Meeting Fee paid for all meetings in excess of four meetings.
|
1.
|
Article 2, Definitions, will be amended to add:
|
2.
|
The second sentence of Section 3.8.1 is hereby deleted in its entirety and replaced with the following:
|
3.
|
Section 3.8.2 is hereby deleted in its entirety and replaced with the following:
|
4.
|
Collaborator contact in Section 3.9 shall be replaced with “[*].”
|
5.
|
Section 4.5 is hereby deleted in its entirety and replaced with the following:
|
6.
|
All instances of “FDA” in Sections 3.9 and 3.11shall be replaced with “FDA and/or other Regulatory Authority”.
|
7.
|
Instances of “21 CFR 312.33” shall be replaced with “21 CFR 312.33, and any applicable local regulatory regulations or guidances”.
|
/s/ James H. Doroshow
|
|
5/16/2018
|
James H. Doroshow, M.D.
|
|
Date
|
Deputy Director, NCI
|
|
|
/s/ Gisela M. Schwab
|
|
5/29/2018
|
Gisela M. Schwab, M.D.
President, Product Development and Medical Affairs, CMO |
|
Date
|
Name of Subsidiary
|
State or Other Jurisdiction of Incorporation or Organization
|
Exelixis International (Bermuda) Ltd.
|
Bermuda
|
Exelixis Patent Company, LLC
|
Delaware
|
Exelixis Plant Sciences, Inc.
|
Delaware
|
Exelixis U.S., LLC
|
Delaware
|
/s/ M
ICHAEL
M. M
ORRISSEY
|
Michael M. Morrissey, Ph.D.
|
President and Chief Executive Officer
(Principal Executive Officer)
|
/s/ C
HRISTOPHER
J. S
ENNER
|
Christopher J. Senner
|
Executive Vice President and Chief Financial Officer
(Principal Financial Officer)
|
/s/ M
ICHAEL
M. M
ORRISSEY
|
|
|
|
/s/ C
HRISTOPHER
J. S
ENNER
|
Michael M. Morrissey, Ph.D.
|
|
|
|
Christopher J. Senner
|
President and Chief Executive Officer
(Principal Executive Officer)
|
|
|
|
Executive Vice President and Chief Financial Officer
(Principal Financial Officer)
|