Case Study - Exelixis
Exelixis is a biotechnology company with a deep pipeline of compounds undergoing clinical studies and a broad group of partners comprised of some of the largest and most sophisticated companies in the biotechnology and pharmaceutical industries. Still years away from receiving approval of its first commercial products, Exelixis had
significant cash needs that have not always arisen when it was convenient for the company to raise capital. Deerfield provided alternatives to the equity markets on two occasions. First, Deerfield provided a flexible line of up to $150 million that Exelixis could draw upon at its option. Later, Deerfield provided the company with an $80 million loan whose amortization is tied in part to business development milestones that allow repayment to coincide with cash flows into the company.