Exelixis Posts Preliminary '25 Results, Issues '26 Outlook

Core Insights - Exelixis, Inc. (EXEL) reported preliminary unaudited financial results for fiscal year 2025, with revenues of approximately $2.32 billion, slightly below the Zacks Consensus Estimate of $2.33 billion [2][8] - The company provided guidance for fiscal year 2026, projecting total revenues between $2.525 billion and $2.625 billion, driven by continued demand for its lead drug, Cabometyx [5][8] - Despite the positive outlook, the stock experienced a decline in pre-market trading on January 12, 2026 [1] Financial Performance - Preliminary net product revenues for 2025 were about $2.12 billion, with cash and marketable securities totaling $1.65 billion at year-end, indicating strong financial flexibility [4] - Research and development (R&D) expenses for 2025 were approximately $825 million, while selling, general and administrative (SG&A) expenses totaled around $520 million [4] 2026 Guidance - For 2026, net product revenues are expected to be in the range of $2.325 billion to $2.425 billion, reflecting a 3% price increase effective January 2026 [5][6] - Operating expenses are projected to rise, with R&D expenses estimated at $875 million to $925 million and SG&A expenses at $575 million to $625 million [6] Product Developments - Cabometyx continues to be a key growth driver, maintaining its position as the leading tyrosine kinase inhibitor (TKI) in renal cell carcinoma (RCC) [6][7] - The label expansion of Cabometyx to include treatment for pancreatic neuroendocrine tumors (pNET) and extra-pancreatic neuroendocrine tumors (epNET) is expected to boost sales further [3][7] Pipeline Expansion - Exelixis is actively expanding its oncology portfolio, with zanzalintinib being a significant near-term catalyst, currently under review for metastatic colorectal cancer (CRC) [10][11] - The company is also advancing several phase I assets, including XL309, XB010, XB628, and XB371, alongside plans for two new investigational new drug filings in 2026 [14][15] Shareholder Returns - Exelixis has repurchased $2.16 billion of stock since 2023, with an additional $750 million authorization in place through 2026, indicating a commitment to returning capital to shareholders [16] Market Performance - Exelixis shares have increased by 24.7% over the past year, outperforming the industry average gain of 19.6% [17]