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Msg  27764 of 28050  at  7/23/2021 8:14:09 PM  by


 In response to msg 27763 by  billyn
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Re: BOD Votes Against

His biggest mistake was

One has to objectively look at the entirety of his performance as CEO and not get caught up in the short term. 2021 has to be looked as a modestly unsuccessful year for EXEL, compared to the fiasco that was 2014 and the COMET failures. BMS returned full rights to cabo on June 14, 2010, CEO Scangos resigned on July 14, 2010 to move to BIIB and MMM became CEO on July 15th with the stock price was hovering around $3. Until that point EXEL was primarily an R&D company without any prospects of generating revenues outside of collaboration deals which were drying up. MMM to his credit pivoted aggressively and bet the future of company on cabo. R&D was shuttered in favor of developing cabo. In 2012 he perhaps made his first big mistake by raising $362M, $250M via convertible debt and $30M equity offering. The COMETs were probably his second big mistake as expectations were high considering the bone scan responses and pain endpoint hype. If the COMETs were successful none of us would be here discussing MMM today. SP hit an all time low of $1.33 December, 2014. The debt overhang put the company on the verge of bankruptcy. MMMs first 5 years could be viewed as a colossal failure.

2015-2020 could equally be viewed as an epic success due to the multiple positive readouts (METEOR, CABOSUN, CELESTIAL, CM9ER), approvals in 2L RCC, 1L RCC, 2L HCC, 1L RCC combo, and overwhelming success in the commercialization of cabo when so called analysts didnt ascribe any value to cabo. MMM should be credited with the impressive turnaround story (one could argue the demise was his own doing, but credit is due nonetheless). Paying off $490M in debt, licensing cabo ex-US, turning the company to profitability, saving $1.6B cash and judiciously managing expenses and being self-reliant are commendable aspects especially in biotech.

"Over the course of the last year, Exelixis has retired more than $490 million of corporate debt, significantly de-levering its balance sheet and enabling the company to plan for its future, which includes maximizing the opportunity for Cabometyx to help patients, while also planning for the next generation of Exelixis medicines," said company CEO Michael Morrissey in a statement. June, 2017.

On the whole MMMs first 10 years could be viewed as a wash, but he had the opportunity to build momentum and set high aspirational goals for the next 5 years into 2025. 2021 was to be the year of 6 readouts and 4 approvals. We still have 5 months left to see where the scorecard ends up. They may not reach $4B by 2025, however, reaching half of the goal at $2B would have to be considered a modest success. If along the way they develop other products with potential then that would be icing on the cake.

Dont get me wrong, Im also extremely disappointed at the lack of SP appreciation, 2021 performance, while management seemingly enrich themselves with a somewhat conservative approach to transforming the company beyond cabo. We are back to watching quarterly scripts and sales numbers. MMM and BOD would have a fiduciary responsibility to shareholders and would have to seriously entertain any offers in the $30-40 range, but how do we know if such offers have been made especially when IP could potentially expire in 2026? Do we give MMM benefit of the doubt and 5 more years to see if he can transform the company into a legitimate multi-product mid-size biotech company? Perhaps if you are a new investor with a long term horizon, but for some of us who have been long time investors, it is extremely disappointing. Monday morning quarter-backing is always easy for us on message boardswe all think we can play CEO. Easier said than done.


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Msg # Subject Author Recs Date Posted
27765 Re: BOD Votes Against TaiTienMuyBien 0 7/23/2021 8:56:54 PM
27767 Re: BOD Votes Against JoeFlow 2 7/23/2021 10:31:53 PM
27768 Re: BOD Votes Against SirCharlesMartin 3 7/23/2021 10:38:43 PM
27774 Re: BOD Votes Against thejunglejaguar 0 7/25/2021 4:18:49 AM
27781 Re: BOD Votes Against JBWIN 13 7/26/2021 5:19:38 PM

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