Exelixis Guidance Drags On Quarterly Beat

 Cancer-focused biotech Exelixis (EXEL) maintained its outlook despite nabbing a quarterly beat, and EXEL stock fell, undercutting its 50-day line Wednesday.

Still, at least one analyst says the upcoming year will provide numerous catalysts for Exelixis. Before the end of the year, Exelixis is expected to unveil the results of two studies of its blockbuster medicine, Cabometyx, in combination with Roche's (RHHBY) Tecentriq. The companies are testing the combo in patients with lung and kidney cancers.

Further, Exelixis is working on a next-generation version of Cabometyx as well as other earlier-stage drugs, RBC Capital Markets analyst Gregory Renza said in a report.

"We see the second half of 2022 setting up as a year of clinical execution/maturation for Exelixis' earlier-stage pipeline," he said.

But on today's stock market, EXEL stock toppled 7.4% to 19.50. Shares tumbled below their 50-day moving average, according to MarketSmith.com.

During the second quarter, adjusted Exelixis earnings tumbled 26% to 28 cents per share. But that easily beat expectations for a 19-cent gain. Revenue grew almost 9% to $419.4 million, topping the average estimate of EXEL stock analysts polled by FactSet for $391 million in sales.

The sales break down into $347 million from Exelixis' drugs, just north of $57.5 million for license revenue, and close to $14.9 million from collaboration services revenue.

The majority of Exelixis' sales stem from its drug, Cabometyx. Cabometyx treats thyroid, kidney and liver cancers. During the quarter, Cabometyx sales surged 22%, ballooning up to $339.2 million vs. expectations for $343 million to $345 million in total product sales, RBC's Renza said.

The strong growth signals there's still room for Cabometyx use to grow among previously untreated patients with renal cell carcinoma, a form of kidney cancer, he said. But the drug also faces increases in discounts, allowances, higher Medicare use, gross-to-net and copay assistance programs, he said.

https://www.investors.com/news/technology/exel-stock-exelixis-earnings-q2-2022/