EXELIXIS, INC. Q3 FY2025 earnings call

• R&D Momentum: Zanzalintinib is the focus of seven pivotal trials, with positive results from STELLAR-303 in CRC. Early-stage pipeline has four molecules in Phase I clinical development.
• Commercial Execution: Cabozantinib U.S. business strong with growth in demand and revenue; NET launch in neuroendocrine tumors off to a great start with over 40% new patient share. Plan to expedite build-out of GI sales team.
• Pipeline Update: Early-stage pipeline includes molecules like XL309, XB010, XB628, and XB371, with Phase I studies progressing well.

Cabozantinib: U.S. net product revenues grew approximately 14% year-over-year to $543 million in the third quarter of 2025 compared to $478 million in the third quarter of 2024. Global Cabo franchise and their product revenues generated by Exelixis and partners were approximately $739 million in Q3 2025 vs. $653 million in Q3 2024. Cabo demand in neuroendocrine tumors grew about 50% and contributed approximately 6% of Q3 business, with revenue for 2025 expected to exceed $100 million. Zanzalintinib: Rapidly advancing with seven ongoing and soon-to-start pivotal trials, with positive results from STELLAR-303 in CRC, showing a 20% reduction in death risk in the ITT population.

• Revised total revenue guidance: $2.3 billion to $2.35 billion; net product revenue: $2.1 billion to $2.15 billion.
• Cost of goods guidance: ~4% of net product revenues.
• R&D expense guidance: $850 million to $900 million (lowered by $75 million).
• SG&A expense guidance: $500 million to $525 million.
• Effective tax rate guidance: 17% to 18%.

• Regulatory Risks: Uncertainties in regulatory review and approval processes for trials and product launches.
• Competitive Risks: Intense market competition in the oncology space.
• Clinical Trial Risks: Uncertainties in clinical trial outcomes and the ability to meet trial endpoints.

Q: Capital allocation strategy between R&D, BD, and share repurchases A: Chris Senner said they plan to fund R&D, business development, and share repurchases with revenue growth and prudent expense management.