A Message from our new CEO

At Exelixis, the past six months have been quite eventful. Following the implementation of our restructuring plan in the spring and the recent return of the XL184 program from Bristol-Myers Squibb, the Exelixis landscape has changed significantly since the start of the year.

In addition, as I assume the position of CEO, I have a new vantage point from which to view our opportunities and challenges.  In the two weeks since I have been appointed to this position, I have spent a great deal of time with the Exelixis Board of Directors, our management team, employees, our stockholders and members of the Wall Street community.  I felt it was important to understand the concerns of our primary stakeholders as we identify and set priorities for Exelixis in the months ahead.

Due to the substantial changes we have undergone recently, and the challenges we face as a result, we are refocusing on our core goals to bring new drugs to cancer patients and build stockholder value. XL184 remains a high priority for us, and I will be working with our management team and clinical investigators to thoroughly evaluate the clinical data that is generated over the next few months. The initial data in the solid tumor setting we presented at ASCO from the randomized discontinuation trial (RDT) was encouraging, but early and only covered a relatively small number of patients.   Our immediate priority is to generate additional data in the five leading cohorts of prostate cancer, HCC, melanoma, NSCLC, and ovarian cancer for presentation at the EORTC meeting in November.  This expanded data set will support a thoughtful prioritization of our clinical and commercial options for XL184 going forward into 2011.  Additionally, the ongoing phase 3 study in medullary thyroid cancer remains a priority, as does the initiation of the phase 3 study in recurrent glioblastoma by year end.

Our recent financing activity puts us in a position to evaluate our opportunities thoughtfully and deliberately.  We acknowledge that we are operating in a financially constrained environment and will strive to use our resources wisely.  

We have an experienced leadership team with the insight that we believe is needed to chart a path to success for our company and our stockholders, and our employees have the commitment and dedication to execute our strategic plan.  I look forward to advancing the Exelixis story together with you in the weeks and months ahead and will keep you abreast of our progress.

Michael M. Morrissey, Ph.D.
President and Chief Executive Officer

Forward-Looking Statements
This message contains forward-looking statements by Exelixis, including, without limitation, statements related to the ongoing and future development of XL184, future data presentations, the therapeutic and commercial potential of XL184, the sufficiency of Exelixis’ financial resources and the potential future success of Exelixis. Words such as “priority,” “will,” “encouraging,” “goals,” and similar expressions are intended to identify forward-looking statements. These forward-looking statements are based upon Exelixis’ current plans, assumptions, beliefs and expectations. Forward-looking statements involve risks and uncertainties. Exelixis’ actual results and the timing of events could differ materially from those anticipated in such forward-looking statements as a result of these risks and uncertainties, which include, without limitation, risks related to the potential failure of XL184 and other Exelixis compounds to demonstrate safety and efficacy in clinical testing; the ability to conduct clinical trials for XL184 and other Exelixis compounds sufficient to achieve a positive completion; the timing and level of expenses associated with the development of XL184 and other Exelixis compounds; Exelixis’ ability to execute on its strategic plan and objectives; Exelixis’ ability to enter into new partnerships and collaborations; the timely receipt of potential license payments, research funding, milestones and royalties under Exelixis' collaborative agreements; and changes in economic and business conditions. These and other risk factors are discussed under “Risk Factors” in Exelixis’ Quarterly Report for the quarter ended April 2, 2010 and Exelixis’ other reports filed with the Securities and Exchange Commission. Exelixis expressly disclaims any duty, obligation or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in Exelixis’ expectations with regard thereto or any change in events, conditions or circumstances on which any such statements are based.