Exelixis Strong Revenue Growth, Updated Guidance

 

• Total Revenue: $539.5 million for Q3 2024.

• Cabozantinib Franchise Net Product Revenues: $478.1 million for Q3 2024.

• License Revenues: $60.2 million for Q3 2024.

• Operating Expenses: Approximately $352 million for Q3 2024.

• GAAP Net Income: Approximately $118 million or $0.40 per share for Q3 2024.

• Non-GAAP Net Income: Approximately $136 million or $0.47 per share for Q3 2024.

• Cash and Marketable Securities: Approximately $1.7 billion as of September 30, 2024.

• Share Repurchase: Approximately $12 million of shares repurchased in Q3 2024.

• Updated 2024 Total Revenue Guidance: $2.15 billion to $2.2 billion.

• Updated 2024 Net Product Revenue Guidance: $1.775 billion to $1.825 billion.

• Warning! GuruFocus has detected 5 Warning Signs with EXEL.

Release Date: October 29, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Exelixis Inc (NASDAQ:EXEL) reported strong financial performance in Q3 2024, with total revenues of approximately $539.5 million, driven by the cabozantinib franchise.

• The company has increased its 2024 full-year net product revenue and total revenue guidance based on robust results.

• Exelixis Inc (NASDAQ:EXEL) secured a favorable ANDA ruling, extending cabozantinib's revenue potential into early 2030.

• The collaboration with Merck for zanza in kidney and head and neck cancers provides significant validation and momentum.

• Exelixis Inc (NASDAQ:EXEL) is well-positioned to capture a significant portion of the neuroendocrine tumor market, pending regulatory approval, with Cabometyx.

Negative Points

• Exelixis Inc (NASDAQ:EXEL) faces intense competition in the first-line RCC market, which remains extremely competitive.

• The company recorded a noncash impairment charge of approximately $52 million related to unoccupied lease facilities.

• There is uncertainty regarding the appeal process of the ANDA ruling, which could impact future revenue projections.

• Exelixis Inc (NASDAQ:EXEL) has a challenging time getting analysts to include zanza in their revenue models, with only half doing so.

• The company is cautious about the potential for regulatory traction in prostate cancer, which is heavily discounted until clarity is achieved.

Q & A Highlights

Q: Can you provide some insight into the diligence process for the Merck collaboration, especially given Merck's existing drug lenvatinib? A: Michael Morrissey, President and CEO, explained that while they can't speak for Merck, the collaboration process was extensive and took many months. Exelixis is excited to work with Merck, a major competitor in the RCC space, and is optimistic about the potential of zanza in the trials Merck will be conducting.

https://finance.yahoo.com/news/exelixis-inc-exel-q3-2024-071535656.html