exel-20230331


Table of Contents

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549


FORM			10-Q


☒			QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2023


☐			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

Commission File Number: 000-30235



EXELIXIS, INC.
(Exact name of registrant as specified in its charter)


Delaware						04-3257395
(State or other jurisdiction of incorporation or organization)						(I.R.S. Employer Identification Number)

1851 Harbor Bay Parkway

Alameda, CA 94502

(650) 837-7000

(Address, including zip code, and telephone number, including area code, of registrant’s principal executive offices)

Securities registered pursuant to Section 12(b) of the Act:


Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock $.001 Par Value per Share	EXEL	The Nasdaq Stock Market LLC

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days). Yes ý No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ý No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer

☒

Accelerated filer

☐

Non-accelerated filer

☐

Smaller reporting company

☐

Emerging growth company

☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Securities Act. ¨

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ý

As of May 1, 2023, there were 325,636,738 shares of the registrant’s common stock outstanding.

Table of Contents

EXELIXIS, INC.

QUARTERLY REPORT ON FORM 10-Q

INDEX


		Page
PART I - FINANCIAL INFORMATION
Item 1.	Financial Statements	3
	Condensed Consolidated Balance Sheets (Unaudited)	3
	Condensed Consolidated Statements of Income (Unaudited)	4
	Condensed Consolidated Statements of Comprehensive Income (Unaudited)	4
	Condensed Consolidated Statements of Stockholders’ Equity (Unaudited)	5
	Condensed Consolidated Statements of Cash Flows (Unaudited)	6
	Notes to Condensed Consolidated Financial Statements (Unaudited)	7
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	20
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	34
Item 4.	Controls and Procedures	34
PART II - OTHER INFORMATION
Item 1.	Legal Proceedings	36
Item 1A.	Risk Factors	38
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	40
Item 3.	Defaults Upon Senior Securities	41
Item 4.	Mine Safety Disclosures	41
Item 5.	Other Information	41
Item 6.	Exhibits	41
SIGNATURES

Table of Contents

PART I - FINANCIAL INFORMATION

Item 1. Financial Statements

EXELIXIS, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(in thousands, except per share data)

(unaudited)


	March 31, 2023		December 31, 2022




ASSETS
Current assets:
Cash and cash equivalents	$	540,597	$	501,195
Short-term investments	772,536		807,273
Trade receivables, net	233,923		214,784
Inventory	29,908		33,299

Prepaid expenses and other current assets	60,654		62,211
Total current assets	1,637,618		1,618,762
Long-term investments	806,615		756,731
Property and equipment, net	116,212		110,624
Deferred tax assets, net	229,603		231,110
Goodwill	63,684		63,684
Right-of-use assets and other	289,627		290,578
Total assets	$	3,143,359	$	3,071,489
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	32,621	$	32,667
Accrued compensation and benefits	56,551		77,158
Accrued clinical trial liabilities	64,210		65,072
Rebates and fees due to customers	66,405		50,350
Accrued collaboration liabilities	18,324		20,188

Other current liabilities	89,486		78,924
Total current liabilities	327,597		324,359
Long-term portion of deferred revenue	6,299		6,582
Long-term portion of operating lease liabilities	186,948		190,170
Other long-term liabilities	67,379		61,951
Total liabilities	588,223		583,062
Commitments and contingencies (Note 10)
Stockholders' equity:
Preferred stock, $0.001 par value, 10,000 shares authorized and no shares issued	—		—
Common stock, $0.001 par value; 400,000 shares authorized; issued and outstanding: 324,985 and 323,951 at March 31, 2023, and December 31, 2022, respectively	325		324
Additional paid-in capital	2,558,297		2,536,849
Accumulated other comprehensive loss	(9,289)		(14,521)
Retained earnings (Accumulated deficit)	5,803		(34,225)
Total stockholders' equity	2,555,136		2,488,427
Total liabilities and stockholders' equity	$	3,143,359	$	3,071,489

The accompanying notes are an integral part of these Condensed Consolidated Financial Statements.

Table of Contents

EXELIXIS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(in thousands, except per share data)

(unaudited)


	Three Months Ended March 31,
	2023		2022
Revenues:
Net product revenues	$	363,400	$	310,298
License revenues	38,292		32,067
Collaboration services revenues	7,096		13,615
Total revenues	408,788		355,980
Operating expenses:
Cost of goods sold	14,315		13,203
Research and development	234,246		156,671
Selling, general and administrative	131,397		102,863
Total operating expenses	379,958		272,737
Income from operations	28,830		83,243
Interest income	19,502		1,822
Other income (expense), net	(54)		164
Income before income taxes	48,278		85,229
Provision for income taxes	8,250		16,656
Net income	$	40,028	$	68,573
Net income per share:
Basic	$	0.12	$	0.21
Diluted	$	0.12	$	0.21
Weighted-average common shares outstanding:
Basic	324,420		319,582
Diluted	326,279		323,289

The accompanying notes are an integral part of these Condensed Consolidated Financial Statements.

EXELIXIS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(in thousands)

(unaudited)


	Three Months Ended March 31,
	2023		2022
Net income	$	40,028	$	68,573
Other comprehensive income (loss):
Net unrealized gains (losses) on available-for-sale debt securities, net of tax impact of $(1,507) and $1,656, respectively	5,232		(5,907)

Comprehensive income	$	45,260	$	62,666

The accompanying notes are an integral part of these Condensed Consolidated Financial Statements.

Table of Contents

EXELIXIS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY

(in thousands)

(unaudited)

Three Months Ended March 31, 2023

Common Stock

Additional
Paid-in
Capital

Accumulated Other Comprehensive Loss

Retained Earnings (Accumulated Deficit)

Total Stockholders' Equity

Amount

Balance at December 31, 2022

323,951

SEC Form 10-Q filed by Exelixis Inc.