EXELIXIS, INC. Q4 FY2025 earnings call

• 2025 was transformational with strong growth across business components. Exelixis has a focus on building a multi-franchise business in solid tumor oncology. - Cabozantinib business had strong performance in Q4 2025 and full year 2025, with US cabo franchise net product revenues growing 17% in full year 2025. - Accelerating ZANZA as next franchise opportunity with NDA accepted for ZanzaAteza combination in third line plus CRC. - Zanzolitinib has seven ongoing and soon-to-start pivotal trials. - Exelixis IND pipeline is full for several years. - Business development focuses on late-stage assets in GU and GI space. - Capital allocation includes advancing pipeline, accessing external molecules, and share repurchase when shares undervalued.

For the fourth quarter of 2025, the US Cabo franchise net product revenues grew 6% year over year to $547 million. Full year 2025, US cabo franchise net product revenues grew 17% to approximately $2.12 billion. Global cabo franchise net product revenues generated by Exelixis and its partners were approximately $754 million in the fourth quarter of 2025 and $2.89 billion in the full year of 2025. Additionally, CABO's US net product revenues exceeded $100 million for the neuroendocrine tumor indication in 2025.

• Gross to net for full year 2026 expected to be between 31-32% due to 2% discount on Medicare Part D sales for being a specified small manufacturer. - $590 million remaining under the $750 million stock repurchase plan authorized by the board in October 2025, with commitment to complete repurchases as long as shares are undervalued.

• Risks related to product commercial success, market competition, regulatory review and approval processes, conducting clinical trials, compliance with regulatory requirements, dependence on collaboration partners, and costs associated with discovery, product development, business development, and commercialization activities.

Q: How long will Exelixis be able to benefit from the small manufacturer discount as Zanza is launched?

A: As the coach, Mike, mentioned, do not want to get too far ahead. Small manufacturer exemptions are tied to having a single product with majority revenue, and it's early days for Zanza's launch, so stay tuned.

Q: Comment on the cadence of share repurchases so far for the six weeks of the New Year?

A: Chris Senner said they will continue share repurchases as long as shares are undervalued, with $590 million remaining on the $750 million authorization and commitment to complete this year.

Q: Comment on recent 340B purchasing behavior and impact on Zamza commercialization?

A: Chris Senner said 340B purchasing behavior is variable in 2025 and expected to be variable in 2026, and PJ Haley mentioned will design channel to optimize results for Zamza commercialization.

Q: Size of population in STELLAR-316 and rough timeline for readout?

A: Dana Aftab said population is based on ~20% of patients who have completed definitive therapy and are positive via ctDNA tests, with data from Terra indicating opportunity of 20,000 to 25,000, and timeline to initiate in 2026 with readout details to come.

Q: Thoughts on positive data from non-liver mets OS final analysis impacting commercial strategy?

A: Patrick Joseph Haley said positive data in non-liver mets is a big deal, and they are excited as it helps move the needle pending approval, with research showing significant unmet medical need and positive reception of Stellar-303 data.