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Exelixis, Inc. EXEL reported better-than-expected results for the third quarter of 2025.
Adjusted earnings of 78 cents per share beat the Zacks Consensus Estimate of 68 cents. The company registered adjusted earnings of 47 cents per share in the year-ago quarter. Adjusted earnings exclude the impact of stock-based compensation expenses.
Including stock-based compensation expense, earnings were 69 cents per share compared with 40 cents in the year-ago period.
Net revenues of $598 million beat the Zacks Consensus Estimate of $589 million. The top line was also up 10.8% year over year.
Exelixis’ shares have risen 13.9% year to date compared with the industry’s gain of 10.9%.
The year-over-year growth in revenues can be attributed to higher product sales offset by lower collaboration revenues.
Net product revenues were $542.9 million, up 13.5% year over year. This rise was primarily driven by increased sales volume.
Cabometyx (cabozantinib) generated revenues of $540 million, which marginally beat the Zacks Consensus Estimate of $539 million and our model estimate of $532 million. The drug is approved for advanced renal cell carcinoma (RCC) and previously treated hepatocellular carcinoma. Cometriq (cabozantinib capsules) generated $3.1 million in net product revenues for treating medullary thyroid cancer.
In March 2025, Exelixis obtained FDA approval for the label expansion of Cabometyx for the treatment of adult and pediatric patients 12 years of age and older with previously treated, unresectable, locally advanced or metastatic, well-differentiated pancreatic and extra-pancreatic neuroendocrine tumors (pNET) and adult and pediatric patients 12 years of age and older with previously treated, unresectable, locally advanced or metastatic, well-differentiated extra-pancreatic NET (epNET).
Demand for Cabometyx in neuroendocrine tumors grew about 50% and contributed approximately 6% to third-quarter business.
Collaboration revenues, comprising license and collaboration services revenues, totaled $54.8 million. The figure was down 10.8% from $61.5 million recorded in the year-ago quarter. The decrease was primarily related to lower milestone-related revenues recognized in the quarter and lower development cost reimbursements earned, partially offset by higher royalty revenues from the sales of cabozantinib outside the United States, generated by Exelixis’ collaboration partner Ipsen Pharma.
Research and development expenses (including stock-based compensation) amounted to $199.2 million, down 10.5% year over year. The decline was primarily related to a decrease in clinical trial costs and license and other collaboration costs.
Selling, general and administrative expenses totaled $123.7 million, up 10.6% year over year, primarily related to increases in stock-based compensation and consulting and outside services.
In August 2024, Exelixis announced that the board of directors authorized the repurchase of up to $500 million of its common stock. Subsequently, in February 2025, EXEL’s board of directors authorized the repurchase of up to an additional $500 million of its common stock.
Under these programs, as of Sept. 30, 2025, Exelixis repurchased $895.3 million of its common stock. Exelixis completed repurchases under the August 2024 repurchase program in the second quarter of 2025 and plans to complete repurchases under the February 2025 authorization in the fourth quarter of 2025.
In October, the board of directors authorized the repurchase of up to an additional $750 million, before Dec. 31, 2026.
Total revenues are now expected to be between $2.30 billion and $2.35 billion (previous guidance: $2.25-$2.35 billion) Net product revenues are estimated to be in the range of $2.10-$2.15 billion (previous guidance: $2.05-$2.15 billion).
The current guidance includes the impact of a 2.8% price increase of Cabometyx in the United States, effective Jan. 1, 2025.
Research and Development expenses are now expected to be in the range of $850-$900 million (previous guidance: $925-$975 million). Selling, general and administrative expenses are now anticipated to be in the $500-$525 million range (previous guidance: $475-$525 million). The effective tax rate for the company is now anticipated to be in the 17-18% range for 2025 (previous guidance: 21-23%).
The company is developing zanzalintinib, a next-generation oral investigational tyrosine kinase inhibitor (TKI).
In October, Exelixis presented detailed results from STELLAR-303 study evaluating zanzalintinib in combination with Roche’s RHHBY Tecentriq (atezolizumab) versus regorafenib in patients with previously treated non-microsatellite instability (MSI)-high metastatic colorectal cancer (CRC).
Exelixis had earlier announced that the STELLAR-303 study met one of its dual primary endpoints, demonstrating a statistically significant in the risk of death in the intent-to-treat (ITT) population when treated with zanzalintinib in combination with Tecentriq compared with the current standard-of-care drug, regorafenib.
Exelixis stated that the trial will continue to a final analysis of the second primary endpoint — overall survival in the subgroup without liver metastases (non-liver metastases, or NLM).
Roche’s Tecentriq is a cancer immunotherapy that is approved around the world, either alone or in combination with targeted therapies and/or chemotherapies, for various types of cancers.
Based on positive data from the study, Exelixis intends to submit a new drug application for zanzalintinib in combination with atezolizumab for the treatment of patients with previously treated metastatic CRC in the United States by the end of 2025.
In July, Exelixis announced several updates to its development program for zanzalintinib, including the initiation of the late-stage STELLAR-311 study in advanced NET. STELLAR-311 is evaluating zanzalintinib versus everolimus as a first oral therapy in patients with advanced NET, regardless of site of origin. The company also announced that planning is underway for the next wave of zanzalintinib pivotal trials in post-chemotherapy adjuvant CRC settings, as well as in high grade and/or recurrent meningiomas.
In July, Exelixis announced that its partner Ipsen received European Commission approval for the use of Cabometyx in adult patients with unresectable or metastatic, well-differentiated pNET and epNET who have progressed following at least one prior systemic therapy other than somatostatin analogues.
In August, Exelixis initiated a phase I study of XB371, the company’s next-generation tissue factor-targeting antibody-drug conjugate (TF-targeting ADC) program, following FDA clearance of its investigational new drug application in July. Exelixis now has four ongoing phase I studies for its pipeline programs — XL309, XB010, XB628 and XB371.
EXEL’s overall performance in the quarter was encouraging, with a beat in both earnings and sales. Initial demand for Cabometyx in the recently approved NET indication is encouraging and should fuel sales.
Exelixis, Inc. price-consensus-eps-surprise-chart | Exelixis, Inc. Quote
The pipeline progress has been impressive as well, as Exelixis looks to expand its oncology portfolio beyond Cabometyx. The successful development of additional drugs should broaden its portfolio and reduce dependence on its lead drug, Cabometyx.
Exelixis currently carries a Zacks Rank #4 (Sell).
A couple of better-ranked stocks in the biotech sector are Alkermes ALKS and Amicus Therapeutics FOLD, both carrying a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Alkermes’ earnings per share (EPS) estimates for 2025 have increased to $1.96 from $1.82, while those for 2026 have risen from $1.70 to $1.77 in the past 30 days. The stock has gained nearly 5.7% year to date.
Alkermes’ earnings beat estimates in three of the trailing four quarters and missed the mark in one, delivering an average surprise of 4.58%.
In the past 60 days, estimates for Amicus Therapeutics’ EPS have remained constant at 31 cents for 2025. During the same time, EPS estimates for 2026 have increased from 69 cents to 70 cents. Year to date, shares of FOLD have lost 4.5%.
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This article originally published on Zacks Investment Research (zacks.com).
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