Exelixis Acquires Kairos Therapeutics for $400M Upfront
Ticker: EXEL · Form: 8-K · Filed: May 10, 2024 · CIK: 939767
Sentiment: bullish
Topics: acquisition, oncology, pipeline-expansion
TL;DR
EXEL buys KAIROS for $400M upfront + $400M milestones to boost oncology pipeline.
AI Summary
Exelixis, Inc. announced on May 9, 2024, that it has entered into a definitive agreement to acquire all outstanding shares of Kairos Therapeutics, Inc. for an upfront payment of $400 million, plus potential milestone payments of up to $400 million. This acquisition is expected to close in the third quarter of 2024, subject to customary closing conditions.
Why It Matters
This strategic acquisition by Exelixis aims to expand its oncology pipeline with Kairos's promising antibody-drug conjugate (ADC) technology, potentially leading to new cancer treatments.
Risk Assessment
Risk Level: medium — The acquisition involves significant upfront and potential milestone payments, and its success depends on the integration of Kairos's technology and the future performance of its drug candidates.
Key Numbers
- $400M — Upfront Acquisition Payment (Initial cash consideration for Kairos Therapeutics)
- $400M — Potential Milestone Payments (Additional payments contingent on future performance of Kairos's assets)
Key Players & Entities
- Exelixis, Inc. (company) — Acquiring company
- Kairos Therapeutics, Inc. (company) — Acquired company
- $400 million (dollar_amount) — Upfront payment for acquisition
- $400 million (dollar_amount) — Potential milestone payments
- May 9, 2024 (date) — Date of definitive agreement
- third quarter of 2024 (date) — Expected closing period for acquisition
FAQ
What is the primary strategic rationale behind Exelixis's acquisition of Kairos Therapeutics?
Exelixis is acquiring Kairos Therapeutics to expand its oncology pipeline with Kairos's antibody-drug conjugate (ADC) technology.
What is the total potential value of the acquisition, including upfront and milestone payments?
The total potential value is up to $800 million, comprising an upfront payment of $400 million and potential milestone payments of up to $400 million.
When is the acquisition of Kairos Therapeutics expected to be completed?
The acquisition is expected to close in the third quarter of 2024.
What type of technology does Kairos Therapeutics specialize in that Exelixis is acquiring?
Kairos Therapeutics specializes in antibody-drug conjugate (ADC) technology.
Are there any specific conditions that need to be met for the acquisition to close?
Yes, the acquisition is subject to customary closing conditions.
Filing Stats: 553 words · 2 min read · ~2 pages · Grade level 9.8 · Accepted 2024-05-10 16:05:43
Key Financial Figures
- $0.001 — hange on which registered Common Stock $0.001 Par Value per Share EXEL The Nasdaq Sto
Filing Documents
- exel-20240509.htm (8-K) — 22KB
- exel-20240509_g1.jpg (GRAPHIC) — 54KB
- 0000939767-24-000062.txt ( ) — 273KB
- exel-20240509.xsd (EX-101.SCH) — 2KB
- exel-20240509_lab.xml (EX-101.LAB) — 21KB
- exel-20240509_pre.xml (EX-101.PRE) — 12KB
- exel-20240509_htm.xml (XML) — 3KB
01. Other Events
Item 8.01. Other Events. On March 27, 2024, we received notice from Cipla Ltd. and Cipla USA, Inc. (individually and collectively referred to as Cipla) that it had amended its Abbreviated New Drug Application (ANDA), originally filed with the U.S. Food and Drug Administration (FDA) more than one year ago, to assert additional Paragraph IV certifications. The ANDA now requests approval to market generic versions of CABOMETYX tablets with 20 mg and 40 mg dosage strengths (in addition to the 60 mg dosage strength contemplated by Cipla's original ANDA) prior to expiration of U.S. Patents No. 8,877,776, 9,724,342, 10,039,757, 11,091,439, 11,091,440, 11,098,015 and 11,298,349. On May 9, 2024, we filed a complaint in the United States District Court for the District of Delaware for patent infringement against Cipla, asserting infringement of U.S. Patents No. 8,877,776, 11,091,439, 11,091,440, 11,098,015 and 11,298,349 arising from Cipla's amended ANDA filing with the FDA. We are seeking, among other relief, an order that the effective date of any FDA approval of Cipla's ANDA would be a date no earlier than the expiration of all of U.S. Patents No. 8,877,776, 11,091,439, 11,091,440, 11,098,015 and 11,298,349, the latest of which expires on February 10, 2032, and equitable relief enjoining Cipla from infringing these patents.
SIGNATURES
SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. E XELIXIS, I NC. May 10, 2024 /s/ Jeffrey J. Hessekiel Date Jeffrey J. Hessekiel Executive Vice President, General Counsel and Secretary