Exelixis Reports Q2 2024 Financials and Corporate Update

Exelixis, Inc. announced its financial performance for the second quarter of 2024, highlighting significant accomplishments in its commercial, clinical, and pipeline development activities. Michael M. Morrissey, Ph.D., President and CEO, emphasized the company's strong positioning for the latter half of 2024, driven by the expansion of the cabozantinib franchise and advancements in regulatory and development objectives.

For Q2 2024, Exelixis reported total revenues of $637.2 million, compared to $469.8 million in Q2 2023. This increase is attributed to higher net product revenues and collaboration revenues. Net product revenues rose to $437.6 million, up from $409.6 million in the previous year, primarily due to increased sales volume and higher average net selling prices. Collaboration revenues soared to $199.6 million from $60.2 million, mainly due to increased milestone-related revenues and higher royalty revenues from cabozantinib sales outside the U.S. by partners Ipsen Pharma SAS and Takeda Pharmaceutical Company Limited.

Research and development expenses for the quarter were $211.1 million, down from $232.6 million in Q2 2023. This decrease was due to reduced license and collaboration costs and clinical trial expenses, partially offset by higher manufacturing costs for development candidates. Selling, general and administrative expenses also fell to $132.0 million from $141.7 million, primarily due to lower legal and advisory fees.

The provision for income taxes for Q2 2024 was $66.7 million, significantly higher than the $19.2 million reported in Q2 2023. GAAP net income surged to $226.1 million, or $0.78 per share (basic) and $0.77 per share (diluted), compared to $81.2 million, or $0.25 per share, in the previous year. Non-GAAP net income was $245.6 million, or $0.85 per share (basic) and $0.84 per share (diluted), up from $100.3 million, or $0.31 per share, in Q2 2023.

The company’s non-GAAP financial measures exclude stock-based compensation expenses and related income tax effects. Exelixis believes these measures provide additional insight for investors and analysts, facilitating meaningful comparisons of its performance over different periods and highlighting operating trends.

Exelixis provided updated financial guidance for FY 2024, projecting total revenues between $1.975 billion and $2.075 billion. Net product revenues are expected to range from $1.650 billion to $1.750 billion, with research and development expenses estimated between $925 million and $975 million. The company anticipates selling, general, and administrative expenses between $450 million and $500 million, and an effective tax rate of 20% to 22%.

In terms of pipeline highlights, cabozantinib continued to perform strongly with U.S. net product revenues of $437.6 million in Q2 2024. The FDA accepted the sNDA for cabozantinib in advanced NET, with a target action date of April 3, 2025. Exelixis is preparing for the launch targeting patients with high unmet medical needs. Additionally, the company plans to initiate a new phase 3 trial for zanzalintinib in NET and advance phase 1 efforts for XL309 and XB010, while discontinuing XB002.

Furthermore, Exelixis announced the completion of its $450 million stock repurchase program and an additional authorization to repurchase up to $500 million of its common stock through the end of 2025. This initiative reflects the company’s commitment to returning value to shareholders.

In conclusion, Exelixis is making significant strides in its commercial and clinical operations, with a robust financial performance for Q2 2024 and strategic plans to advance its oncology pipeline. The company is poised for continued success in the latter half of 2024 and beyond, driven by its innovative product portfolio and commitment to addressing unmet medical needs in cancer treatment.