For investors of Exelixis, Inc. (NASDAQ:EXEL), today is an interesting and exciting day. Exelixis, Inc. (NASDAQ:EXEL) has announced a lucrative licensing deal and also reported their Fourth Quarter and Full-Year 2015 financial results.
The licensing deal was reached exclusively with Ipsen, and it covers the commercialization and development of the company’s oncology drug, cabozantinib. The deal gives Ipsen exclusive rights to commercialize cabozantinib anywhere outside of the U.S., Japan and Canada, and includes the rights to COMETRIQ, a drug already approved in Europe.
When we said that it was a lucrative deal, we were not kidding. Exelixis, Inc. (NASDAQ:EXEL) will receive $200 million upfront, as well as milestone payments which include a $60 million milestone if and when cabozantinib is approved in Europe. Additional milestones could see Exelixis receive up to $545 million on top of royalties.
As for the earnings report, Exelixis, Inc. (NASDAQ:EXEL) reported net revenues of $9.9 million for the quarter which ended December 31, 2015, quite the jump year-over-year. 2014 brought in revenues of just $7.4 million. For the year, the company saw net reveneues of $37.1 million, beating last years numbers of just $25.1 million quite substantially.
“Our second Exelixis-discovered compound, cobimetinib, also saw numerous milestones in the fourth quarter, including regulatory approval in the United States and European Union, as well as the presentation of overall survival results in advanced melanoma. Approval in Canada was also obtained this month. The collective progress in advancing both of these compounds sets the company up for an impactful year, and we remain grateful for the support of our stakeholders as we continue to make progress in our mission to meaningfully improve the care and outcomes for people with cancer.”