When Carl Icahn gets involved in biotech companies, action often follows. He sold off ImClone Systems Inc. to Eli Lilly and Co., helped split Enzon Pharmaceuticals in two and unsuccessfully pushed for a sale of Biogen Idec Inc.
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Now he's bought into Exelixis Inc., a high-profile Bay Area firm that has plenty of drugs in its pipeline but nothing on the market. As of Sept. 30, Icahn through his Icahn Capital LP fund, is the proud owner of 1.3 million shares, according to an Securities and Exchange Commission filing released Nov. 14. Exelixis stock closed at $2.98 a share Tuesday.
With or without Icahn, Exelixis is at a crossroads. It ended its six-year development partnership with GlaxoSmithKline plc last month, and the developer of small-molecule cancer drugs says it must move quickly to put some of its pipeline in other people's hands, much like a family that can't afford to raise all its kids. Expect cash-raising deals to follow soon.
After spending $270 million last year and more than $150 million the first half of 2008, the firm needs to trim its sails. Recent layoffs of 78 staffers will help (though don't tell that to those laid off), and the firm says it will outlicense at least one drug to a larger partner before year's end.
- Alex Lash
