Bristol-Myers will pay EXEL $20 million in return for EXEL's new cancer drug hitting a pre-determined development point.
Exelixis stock price fell as it announced that a mid-stage trial of its experimental drug for diabetic nephropathy (a kidney disease) did not meet its goal of reducing excess protein in urine. The drug was compared with a dummy drug for three months, but of no consequence. However, the company stated that it will continue to analyze the data to see if a further evaluation is required. It will also submit the data to GlaxoSmithKline for evaluation by end of October.
Exelixis announced that it will sell 7 million shares of its common stock. The company is selling the stock pursuant to an automatic shelf registration statement. The underwriter will have a 30-day option to purchase 1,050,000 additional shares.