Exelixis Announces Third Quarter 2007 Financial Results and Business Update
Revenues for the quarter ended September 30, 2007 were $26.8 million,compared to $23.5 million for the comparable period in 2006. The increase inrevenues from 2006 to 2007 was primarily due to revenue recognition associatedwith new collaboration agreements with Bristol-Myers Squibb Company forvarious oncology programs and Genentech, Inc. for the XL518 program. Theincrease was partially offset by the completion of revenue recognition relatedto the upfront payment associated with the collaboration agreement withDaiichi Sankyo Company Limited for our mineralocorticoid receptor (MR)program.
Research and development expenses for the quarter ended September 30, 2007were $58.6 million, compared to $46.0 million for the comparable period in2006. The increase from 2006 to 2007 was primarily due to increaseddevelopment expenses associated with the continued expansion of our clinicaltrial activity and the advancement of our compounds through preclinicaldevelopment.
General and administrative expenses for the quarter ended September 30,2007 were $10.8 million, compared to $8.8 million for the comparable period in2006. The increase from 2006 to 2007 was primarily due to personnel expensesand stock-based compensation expense to support our expanding operations.
Net loss for the quarter ended September 30, 2007 was $13.7 million, or$0.14 per share, compared to $25.2 million, or $0.30 per share, for thecomparable period in 2006. The decrease in the net loss from 2006 to 2007 wasprimarily due to an $18.8 million gain on the sale of assets recognized inconjunction with our transaction with Agrigenetics Inc., a wholly-ownedsubsidiary of The Dow Chemical Company, which was accounted for as a sale ofour plant trait business.
Cash and cash equivalents, short-term and long-term marketable securities,investments held by Symphony Evolution, Inc. (a consolidated clinicaldevelopment financing vehicle) and restricted cash and investments totaled$297.6 million at September 30, 2007, compared to $263.2 million at December31, 2006.
We presented phase 2 data for XL647 and XL880, and phase 1 data for XL184,XL765 and XL147 at the 2007 AACR-NCI-EORTC International Conference onMolecular Targets and Cancer Therapeutics in San Francisco. In total, 13abstracts were accepted for poster presentation at the conference, reportingdata from clinical trials or preclinical studies of XL880, XL647, XL184,XL147, XL765, XL820, XL844 and XL518.
We also announced that a recently completed phase 2 trial of XL784 did notmeet its primary endpoint of reducing proteinuria compared with placebo inpatients with proteinuria associated with diabetic nephropathy. Varioussubgroup analyses suggest that the compound may have potential to benefitpatients with this disease. We submitted the XL784 data report to GSK onOctober 22, 2007 and GSK has 90 days from the date of submission of the datareport to determine whether it will select XL784 for further clinicaldevelopment and commercialization.
"The third quarter of 2007 was marked by a number of milestones forExelixis," said George A. Scangos, Ph.D., president and chief executiveofficer of Exelixis. "During the quarter, we clarified ownership of our leadcompound, XL647, and began with GSK an accelerated review of XL880, which webelieve to be the most advanced MET inhibitor in clinical development. We alsopresented encouraging phase 2 clinical data for XL647 and continued to makepreparations to begin pivotal trials for the compound in the first half ofnext year. After the quarter closed, we presented encouraging clinical data onseven of our other pipeline compounds at the AACR-NCI-EORTC conference, aswell as updated data for XL647. Throughou
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