ALAMEDA, Calif. - Exelixis, Inc. (NASDAQ:EXEL), a biopharmaceutical company, announced today that it has reached a settlement agreement with pharmaceutical companies Cipla Ltd. and Cipla USA, Inc., collectively known as Cipla. The settlement resolves patent litigation concerning Exelixis's cancer drug CABOMETYX (cabozantinib) tablets.
The litigation stemmed from Cipla's Abbreviated New Drug Application (ANDA) seeking to market generic versions of CABOMETYX before the expiration of the patents. The disputes involved two cases, the first filed on March 16, 2023, over a 60 mg dosage of cabozantinib, and the second filed on May 9, 2024, concerning 20 mg and 40 mg dosages.
Under the terms of the settlement, Exelixis will grant Cipla a license to sell generic versions of CABOMETYX in the United States starting January 1, 2031, contingent upon U.S. Food and Drug Administration approval and standard conditions typically found in such agreements.
The agreement also stipulates that all ongoing Hatch-Waxman litigation related to CABOMETYX patents, currently pending in the U.S. District Court for the District of Delaware, will be terminated. The lawsuits are expected to be dismissed after a review period by the U.S. Federal Trade Commission (FTC).
This news is based on a press release statement.
InvestingPro Insights
In light of Exelixis, Inc.'s (NASDAQ:EXEL) recent settlement with Cipla concerning patent litigation over its cancer drug CABOMETYX, investors may find it pertinent to consider several key financial metrics and InvestingPro Tips that could shed light on the company's current market position and future outlook.
Exelixis's market capitalization stands at $6.09 billion, reflecting the market's valuation of the company. The firm's Price to Earnings (P/E) ratio is currently 32.52, which adjusts to a lower 26.29 when considering the last twelve months as of Q1 2024, suggesting that investors may be anticipating earnings growth. The company's revenue growth over the same period was a robust 10.98%, indicating an expanding business.
One InvestingPro Tip notes that Exelixis has been aggressively buying back shares, a move that can signal confidence from management in the company's future prospects and can also serve to increase earnings per share over time. Additionally, Exelixis holds more cash than debt on its balance sheet, providing the company with financial flexibility and a buffer against market downturns.
For readers interested in a deeper dive into Exelixis's financial health and future performance estimates, InvestingPro offers additional insights. There are 7 analysts who have revised their earnings upwards for the upcoming period, and the stock is noted for trading with low price volatility. For those considering an investment, Exelixis's liquid assets exceed short term obligations, which can be a sign of a company in a strong liquidity position to meet its immediate financial liabilities.
To gain access to the full range of InvestingPro Tips, including insights on Exelixis's high shareholder yield and low P/E ratio relative to near-term earnings growth, visit https://www.investing.com/pro/EXEL. There are a total of 12 additional InvestingPro Tips available, which can provide valuable context for investors. To get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, use the coupon code PRONEWS24.
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