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Exelixis (EXEL) Amends Agreement With Iconic Therapeutics
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Exelixis, Inc. (EXEL - Free Report) amended its agreement with Iconic Therapeutics, Inc, which was originally signed in May 2019 for XB002 (formerly ICON-2) — a next-generation tissue factor (TF)-targeting antibody-drug conjugate (ADC).
Per this amended agreement, Exelixis acquired full rights to use the anti-TF antibody incorporated into XB002 for any application, including conjugated to other payloads. The company also acquired rights within oncology to a number of other anti-TF antibodies developed by Iconic, including for use in ADCs and multi-specific biologics.
Exelixis will make a one-time payment of $55 million to Iconic and will not owe any further payments to the latter. Exelixis will continue to be responsible for milestone payments and royalties owed to Adimab, LLC and royalties owed to Zymeworks Inc, pursuant to prior agreements between Iconic and those companies. Under the terms of the original agreement, Iconic granted Exelixis rights to XB002 and limited rights to the specific anti-TF antibody as incorporated into XB002.
The decision was based on encouraging data from the XB002 clinical study and its potential for patients.
We note that Exelixis exercised its option to in-license XB002 in December 2020. It is currently conducting a phase I study in patients with advanced solid tumors. XB002 is the first of Exelixis’ biologics candidates to enter clinical development. The initial data from the phase I study is expected in 2022.
Exelixis’ shares have lost 17% in the past year compared with the industry’s decline of 30.2%.
Image Source: Zacks Investment Research
Exelixis is looking to build a differentiated next-generation pipeline in oncology through strategic collaborations. The successful development of additional candidates will diversify its revenue base and reduce dependence on lead drug Cabometyx, which is approved for advanced RCC and previously treated hepatocellular carcinoma (HCC), maintaining momentum on label expansions.
In January 2021, the FDA approved Cabometyx in combination with immuno-oncology drug Bristol Myers’ (BMY - Free Report) Opdivo for the first-line treatment of patients with advanced RCC.
Sales of the drug saw an increase in volume, driven by the strong uptake for the combination therapy of Cabometyx and Opdivo.
However, competition is stiff in this space. Hence, Exelixis is looking to develop its portfolio beyond Cabometyx.
Opdivo is one of the main growth drivers for Bristol Myers’ and the company is working to expand the drug’s label in various other indications through combination studies with other drugs.
Merck’s (MRK - Free Report) Keytruda in combination with Pfizer’s (PFE - Free Report) Inlyta is also indicated for the first-line treatment of patients with advanced RCC.
Merck’s Keytruda, an anti-PD-1 therapy, is approved for the adjuvant treatment of patients with RCC at intermediate-high or high risk of recurrence, following nephrectomy or following nephrectomy and resection of metastatic lesions.
Pfizer’s Inlyta has shown strong performance, driven by continued adoption in the United States and Europe. Pfizer’s older drug Sutent is also approved for advanced RCC.
Exelixis currently carries a Zacks Rank #4 (Sell).
Image: Bigstock
Exelixis (EXEL) Amends Agreement With Iconic Therapeutics
Exelixis, Inc. (EXEL - Free Report) amended its agreement with Iconic Therapeutics, Inc, which was originally signed in May 2019 for XB002 (formerly ICON-2) — a next-generation tissue factor (TF)-targeting antibody-drug conjugate (ADC).
Per this amended agreement, Exelixis acquired full rights to use the anti-TF antibody incorporated into XB002 for any application, including conjugated to other payloads. The company also acquired rights within oncology to a number of other anti-TF antibodies developed by Iconic, including for use in ADCs and multi-specific biologics.
Exelixis will make a one-time payment of $55 million to Iconic and will not owe any further payments to the latter. Exelixis will continue to be responsible for milestone payments and royalties owed to Adimab, LLC and royalties owed to Zymeworks Inc, pursuant to prior agreements between Iconic and those companies. Under the terms of the original agreement, Iconic granted Exelixis rights to XB002 and limited rights to the specific anti-TF antibody as incorporated into XB002.
The decision was based on encouraging data from the XB002 clinical study and its potential for patients.
We note that Exelixis exercised its option to in-license XB002 in December 2020. It is currently conducting a phase I study in patients with advanced solid tumors. XB002 is the first of Exelixis’ biologics candidates to enter clinical development. The initial data from the phase I study is expected in 2022.
Exelixis’ shares have lost 17% in the past year compared with the industry’s decline of 30.2%.
Exelixis is looking to build a differentiated next-generation pipeline in oncology through strategic collaborations. The successful development of additional candidates will diversify its revenue base and reduce dependence on lead drug Cabometyx, which is approved for advanced RCC and previously treated hepatocellular carcinoma (HCC), maintaining momentum on label expansions.
In January 2021, the FDA approved Cabometyx in combination with immuno-oncology drug Bristol Myers’ (BMY - Free Report) Opdivo for the first-line treatment of patients with advanced RCC.
Sales of the drug saw an increase in volume, driven by the strong uptake for the combination therapy of Cabometyx and Opdivo.
However, competition is stiff in this space. Hence, Exelixis is looking to develop its portfolio beyond Cabometyx.
Opdivo is one of the main growth drivers for Bristol Myers’ and the company is working to expand the drug’s label in various other indications through combination studies with other drugs.
Merck’s (MRK - Free Report) Keytruda in combination with Pfizer’s (PFE - Free Report) Inlyta is also indicated for the first-line treatment of patients with advanced RCC.
Merck’s Keytruda, an anti-PD-1 therapy, is approved for the adjuvant treatment of patients with RCC at intermediate-high or high risk of recurrence, following nephrectomy or following nephrectomy and resection of metastatic lesions.
Pfizer’s Inlyta has shown strong performance, driven by continued adoption in the United States and Europe. Pfizer’s older drug Sutent is also approved for advanced RCC.
Exelixis currently carries a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.