Why Is Cancer-Focused Exelixis Stock Trading Higher On Friday?

Core Insights - Exelixis, Inc. has authorized an additional stock repurchase program of up to $500 million, expected to be completed by Q2 2025 [1] - The company reported a fourth-quarter adjusted EPS of 55 cents, exceeding the consensus estimate of 43 cents, with sales of $566.75 million, also surpassing expectations [2] - Exelixis reaffirmed its 2025 sales guidance of $2.15 billion to $2.25 billion, slightly below the consensus of $2.24 billion [2] Stock Repurchase Program - The new stock repurchase program follows a previous $500 million program announced in August 2024, which is set to be completed in Q2 2025 [1] - As of the end of fiscal year 2024, Exelixis has returned over $1.2 billion to shareholders through its stock repurchase initiatives [1] Financial Performance - The fourth-quarter adjusted EPS of 55 cents beat the consensus estimate of 43 cents, indicating strong financial performance [2] - Sales for the quarter reached $566.75 million, exceeding the consensus of $563.42 million, reflecting robust demand for its products [2] - The company has reaffirmed its sales guidance for 2025, projecting revenues between $2.15 billion and $2.25 billion [2] Clinical Developments - Exelixis announced positive long-term results from the phase 3 CheckMate -9ER trial for Cabometyx in combination with Opdivo, showing sustained efficacy benefits for patients with advanced renal cell carcinoma [3][4] - The trial demonstrated improved progression-free survival and overall survival compared to sunitinib, with a median follow-up of 67.6 months [4] - A subgroup analysis indicated that the combination therapy favored Cabometyx regardless of the IMDC risk group [5] Regulatory Updates - The supplemental New Drug Application (sNDA) for cabozantinib for advanced pancreatic neuroendocrine tumors is still under FDA consideration, with an action date set for April 3 [6] - The sNDA will not be discussed at the upcoming FDA Oncologic Drugs Advisory Committee meeting [6] Stock Performance - Exelixis stock experienced a 3.42% increase, reaching $36.29 at the last check on Friday [6]