Exelixis holder Farallon issues letter on nominees for director candidates

Funds managed by Farallon Capital Management own approximately 7.2% of the outstanding shares of Exelixis "making us the Company’s largest active shareholder. We have been continuously invested in Exelixis since 2018 and believe that the cabozantinib franchise and related intellectual property are durable, and the opportunity to commercialize zanzalintinib is underestimated by many investors. There can be no doubt, however, that Exelixis has been a disappointment for shareholders. Despite starting with a library of promising compounds and eventually commercializing a front-line cancer medicine that generates more than $2B in annual revenue, Exelixis has made essentially no money for its investors. Since its IPO nearly 23 years ago, Exelixis has generated a total shareholder return of less than 1% per year. Most of you have been on this Board long enough – your average tenure is 16 years – to have observed the Company’s stagnation. It is time to ask yourselves: what needs to change so that Exelixis finally creates value for shareholders? We believe the Company must focus its R&D efforts and spending, communicate a differentiated and coherent strategy, commit to ongoing distributions of excess capital to shareholders and augment the Board with new perspectives. This is why we recently provided you notice that we intend to nominate three exceptional director candidates to the Board. We believe it is time for change," said Farallon in part in its letter.