Core Insights - Exelixis (EXEL) has shown strong year-to-date performance with a 15.6% increase in share price, significantly outperforming the industry growth of 2.9% [1] - Despite reaching a 52-week high of $49.62 on June 23, 2025, shares dipped following mixed quarterly results reported on July 28 [1][4] - The company’s lead drug, Cabometyx, continues to perform well in the renal cell carcinoma (RCC) market, supported by strong demand and recent label expansions [5][6] Company Performance - Exelixis' stock has outperformed both the sector and the S&P 500 Index during the year [1] - The company reported a revenue miss in the second quarter, which has affected investor sentiment [8][20] - Cabometyx remains the leading tyrosine kinase inhibitor (TKI) for RCC, with strong sales driven by its combination with Bristol Myers' Opdivo [5][6] Drug Pipeline and Developments - Zanzalintinib, an investigational TKI, has shown positive results in the STELLAR-303 study, meeting a key endpoint for overall survival in metastatic colorectal cancer [10][12] - The company has decided not to proceed with the phase III portion of the STELLAR-305 trial for zanzalintinib due to emerging competition and a focus on larger commercial opportunities [14] - Exelixis is actively expanding its pipeline with three ongoing phase I studies and has received FDA clearance for a new IND application [15] Financial Outlook - Exelixis shares are currently trading at a price/sales ratio of 4.14x forward sales, higher than the biotech industry average of 1.59x [16] - The bottom-line estimate for 2025 has increased slightly from $2.64 to $2.68, while the estimate for 2026 has decreased from $3.13 to $3.09 [17] Competitive Landscape - Cabometyx faces significant competition in the RCC market, particularly from Merck's Keytruda and Pfizer's Inlyta [20][21] - Keytruda is a leading drug in the RCC space, accounting for approximately 50% of Merck's pharmaceutical sales [21]

Core Insights - Exelixis is developing zanzalintinib, a next-generation oral investigational tyrosine kinase inhibitor (TKI) targeting receptor tyrosine kinases involved in cancer growth, with recent studies showing positive data [1] Study Results - In June 2025, Exelixis announced positive top-line results from the STELLAR-303 study, a phase III trial involving 901 patients with metastatic colorectal cancer, comparing zanzalintinib plus Tecentriq against regorafenib [2] - The STELLAR-303 study met one of its dual primary endpoints, showing a statistically significant improvement in overall survival (OS) for the intent-to-treat population treated with zanzalintinib plus Tecentriq compared to regorafenib [3] - Enrollment for the STELLAR-304 study was completed in May 2025, evaluating zanzalintinib in combination with Opdivo versus sunitinib in advanced non-clear cell renal cell carcinoma [4] - Exelixis has opted not to proceed with the phase III portion of the STELLAR-305 trial based on emerging data and competition in advanced squamous cell carcinoma [5] - The company initiated the phase III STELLAR-311 study in advanced neuroendocrine tumors, comparing zanzalintinib to everolimus [6] Competitive Landscape - The competitive environment for renal cell carcinoma (RCC) is intensifying, with significant competition for Exelixis's lead drug, Cabometyx, from various immunotherapy-TKI combinations [7] - Keytruda, approved for advanced RCC, accounts for approximately 50% of Merck's pharmaceutical sales, highlighting the competitive pressure in the market [10] Financial Performance - Exelixis shares have increased by 14% year-to-date, contrasting with a 0.9% decline in the biotech industry [11] - The company's shares are currently trading at a price/sales ratio of 4.09x forward sales, above its historical mean of 3.64x and the biotech industry's average of 1.59x [13] - The bottom-line estimate for 2025 has risen from $2.64 to $2.68, while the estimate for 2026 has decreased from $3.13 to $3.09 over the past 30 days [14]

Core Viewpoint - Pomerantz LLP is investigating potential securities fraud or unlawful business practices involving Exelixis, Inc. and its officers or directors [1] Financial Performance - Exelixis reported net product revenues for cabozantinib at approximately $520.9 million, which is about 2% below the consensus estimate of $531.3 million [3] - Following the announcement of financial results, Exelixis's stock price dropped by $7.45 per share, or 16.78%, closing at $36.94 per share on July 29, 2025 [3] Clinical Development - Exelixis decided not to proceed to the phase 3 portion of the STELLAR-305 study in advanced squamous cell carcinoma of the head and neck due to emerging competition and assessment of other commercial opportunities [3]

On this news, Exelixis's stock price fell $7.45 per share, or 16.78%, to close at $36.94 per share on July 29, 2025. [Click here for information about joining the class action] On July 28, 2025, Exelixis issued a press release "report[ing] financial results for the second quarter of 2025" and "provid[ing] an update on progress toward achieving key corporate objectives, and outlined its commercial, clinical and pipeline development milestones." Among other items, Exelixis reported that net product revenues f ...

Analyst's Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or a ...

Group 1: Celestica (CLS) - Celestica exceeded Q2 earnings expectations, with sales of $2.89 billion, a 21% increase from $2.39 billion a year ago, surpassing estimates by 8% [3] - Q2 earnings soared 53% year-over-year to $1.39 per share, exceeding expectations of $1.24 by 12% [3] - The stock hit an all-time high of $208, spiking 16% in a single trading session, driven by high demand for communications and enterprise hardware products [2][4] - Celestica's stock has increased over 115% in 2025 and more than 135% in the last three months, outperforming broader market indexes [4] Group 2: Exelixis (EXEL) - Exelixis reported Q2 EPS of $0.75, beating expectations of $0.65 by 15%, despite a decline from $0.84 in the previous year [5] - Sales were $568.26 million, missing estimates of $578.91 million and down from $637.18 million in Q2 2024 [5][6] - The stock fell nearly 17% post-earnings, presenting a potential buy-the-dip opportunity, despite reaffirming full-year revenue guidance of $2.25-$2.35 billion [5][7] - Exelixis' stock is down 5% in 2025 but has increased over 80% in the last two years, currently trading under $40 with a forward earnings multiple of 16.6 [9]

Investors might want to bet on Exelixis (EXEL) , as it has been recently upgraded to a Zacks Rank #1 (Strong Buy). This rating change essentially reflects an upward trend in earnings estimates -- one of the most powerful forces impacting stock prices. The sole determinant of the Zacks rating is a company's changing earnings picture. The Zacks Consensus Estimate -- the consensus of EPS estimates from the sell-side analysts covering the stock -- for the current and following years is tracked by the system. Si ...

Core Viewpoint - Exelixis, Inc. reported mixed results for Q2 2025, with adjusted earnings beating estimates but revenues missing expectations, leading to a decline in stock price in pre-market trading [2][3][25] Financial Performance - Adjusted earnings were 75 cents per share, exceeding the Zacks Consensus Estimate of 65 cents, but down from 84 cents in the same quarter last year [2][8] - Net revenues totaled $568.3 million, missing the Zacks Consensus Estimate of $579 million and reflecting a 10.8% year-over-year decline [3][8] - Net product revenues were $520 million, marking an 18.8% increase year-over-year, primarily driven by increased sales volume [5][8] Product Performance - Cabometyx generated revenues of $517.9 million, falling short of the Zacks Consensus Estimate of $527 million but surpassing the model estimate of $511.3 million [6][8] - The demand for Cabometyx's new indication for neuroendocrine tumors accounted for just over 4% of total demand in Q2, with expectations for growth [9][25] Collaboration and Revenue Sources - Collaboration revenues plummeted 70% to $48.2 million from $199.6 million in the prior year, largely due to a significant milestone payment recognized in the previous quarter [10][25] Expenses - Research and development expenses were $200.3 million, down 5.1% year-over-year, while selling, general, and administrative expenses rose 2.1% to $134.9 million [11][25] Stock Repurchase Program - Exelixis has repurchased $796.3 million of its common stock at an average price of $36.69 per share, with $204 million remaining under the current repurchase plan [12][13] Guidance - The company maintains its 2025 revenue guidance of $2.25 billion to $2.35 billion, with net product revenues expected between $2.05 billion and $2.15 billion [14][15] Pipeline Developments - Exelixis is advancing its pipeline with zanzalintinib, which has shown promising results in the STELLAR-303 study for metastatic colorectal cancer [16][18] - The company has three ongoing phase I studies and plans to initiate a phase I study for XB371 soon [23] Legal Settlement - In July 2025, Exelixis settled patent litigation with Biocon Pharma, allowing Biocon to market a generic version of Cabometyx in the U.S. starting January 1, 2031, if approved [24]

Exelixis (EXEL) came out with quarterly earnings of $0.75 per share, beating the Zacks Consensus Estimate of $0.65 per share. This compares to earnings of $0.84 per share a year ago. These figures are adjusted for non- recurring items. Over the last four quarters, the company has surpassed consensus EPS estimates four times. Exelixis, which belongs to the Zacks Medical - Biomedical and Genetics industry, posted revenues of $568.26 million for the quarter ended June 2025, missing the Zacks Consensus Estimate ...

Financial Data and Key Metrics Changes - For Q2 2025, the company reported total revenues of approximately $568 million, including net product revenues from the cabozantinib franchise of $520 million, which represents a 19% year-over-year growth from $438 million in Q2 2024 [7][13] - GAAP net income for Q2 2025 was approximately $184.8 million, or $0.68 per share basic and $0.65 per share diluted, while non-GAAP net income was approximately $212.6 million, or $0.78 per share basic and $0.75 per share diluted [15] - The gross to net for the cabozantinib franchise in Q2 2025 was 30.2%, an increase from the previous quarter, primarily due to higher 340B volume, which now accounts for over 24% of total volume, up four percentage points from 2024 [13][14][70] Business Line Data and Key Metrics Changes - The cabozantinib franchise showed robust performance, with significant growth in demand and revenue, particularly from the recently approved neuroendocrine tumor (NET) indications, contributing approximately 4% to total net product revenue in Q2 2025 [6][7][23] - CABOMETYX maintained its position as the leading TKI for renal cell carcinoma (RCC), with TRx volume growing 18% year-over-year, outpacing the market growth rate by 10 percentage points [19][20] - The launch of CABOMETYX in NETs has been strong, achieving a 35% new patient share in the oral therapy segment shortly after approval [22][23] Market Data and Key Metrics Changes - The company anticipates that the contribution from NETs to total demand for CABOMETYX will increase over time, with early market research indicating CABOMETYX is viewed as the best-in-class oral therapy in this segment [24][25] - The competitive landscape for NETs includes generic therapies, which positions CABOMETYX advantageously due to its full commercial support [25] Company Strategy and Development Direction - The company aims to solidify its leadership in oncology drug discovery, development, and commercialization, focusing on improving the standard of care for cancer patients [5][6] - Zanzalutinib is being positioned as the next oncology franchise opportunity, with ongoing pivotal trials and a focus on high-potential indications [8][9] - The company is committed to rigorous capital allocation decisions based on clinical and competitive data, prioritizing the most promising development opportunities [9][10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth of the CABOMETYX business, particularly in the NET segment, and emphasized the importance of continuous assessment of market dynamics and competitive positioning [5][6][49] - The company plans to update its financial guidance as it builds momentum on the NET launch and identifies additional revenue opportunities for the second half of 2025 [16] Other Important Information - The company reported a cash and marketable securities balance of approximately $1.4 billion as of June 30, 2025, and continued share repurchases under its authorized plan [16] - The One Big Beautiful Bill Act, signed into law on July 4, 2025, allows for the accelerated deduction of unamortized domestic R&D expenditures, providing a federal cash tax benefit estimated at $147 million [14][15] Q&A Session Summary Question: Insights on head and neck data extrapolation - Management acknowledged the dynamic nature of drug development and emphasized the importance of continuous assessment of emerging data [40][41] Question: Long-term market share sustainability for CABOMETYX - Management expressed confidence in sustaining market share gains in both RCC and NET segments, citing strong franchise growth and early success in the NET launch [44][46][49] Question: Positioning of Zanzalutinib in colorectal cancer landscape - Management highlighted the significance of overall survival benefits in colorectal cancer and the potential for Zanzalutinib to be a competitive option in the market [54][56] Question: Pricing dynamics and 340B volume impact - Management noted a shift towards the 340B segment, which is highly discounted, impacting gross to net ratios, but projected continued success for CABOMETYX as the standard of care [68][70] Question: Dual primary endpoints for STELLAR-304 - Management clarified that both progression-free survival (PFS) and overall response rate (ORR) are dual primary endpoints, and success in either would constitute a positive study [72][74] Question: Balancing Zanzalutinib's potential across indications - Management emphasized the strategy to maximize Zanzalutinib's impact by exploring new indications and combinations while reinforcing the existing TKI franchise [88][90]