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Exelixis - $EXEL - Earnings Analysis: Continued growth and momentum of the cabozantinib franchise.

By sagebytes in Business —

Business Model

Exelixis generates revenue primarily through the sales of its cabozantinib franchise, including CABOMETYX and COMETRIQ, and through collaboration agreements with partners like Ipsen and Takeda for royalties on cabozantinib sales outside the U.S.

Revenue Sources

  • CABOMETYX net product revenues in the U.S.
  • COMETRIQ net product revenues in the U.S.
  • Royalties from Ipsen and Takeda on cabozantinib sales outside the U.S.
  • License revenues from collaboration agreements.
  • Collaboration services revenues, primarily development cost reimbursements.

Income Statement Analysis

  • Total revenues increased significantly due to higher net product revenues.
  • R&D expenses remained relatively stable.
  • Net income saw substantial growth, driven by increased revenue.

Balance Sheet Analysis

  • Cash and marketable securities increased slightly, indicating a strong financial position.

Capital Allocation

Exelixis is focused on advancing its pipeline priorities with cabozantinib and zanzalintinib, as well as the rest of its pipeline. The company also allocates capital to share repurchases and business development activities, targeting late-stage assets in the GU/GI oncology space.

Management Commentary

Exelixis delivered a strong fourth quarter of 2024, positioning us well to maximize success in 2025.

CABOMETYX market leader in 2L RCC

Our current 2025 guidance, which does not include any impact from a potential U.S. regulatory approval for CABOMETYX® in advanced neuroendocrine tumors, points to solid growth for the cabozantinib franchise.

Overall Sentiment: Positive, with a focus on continued growth, pipeline development, and strategic capital allocation.

Recommendation

Rating: Buy

Reason for Rating: Strong financial performance, growth potential with zanzalintinib, and a balanced capital allocation strategy make Exelixis a buy.

Disclaimer: This report is for informational purposes only and not investment advice. The analysis is based on limited information and subject to change. Investing in securities involves risks, including potential loss of principal. Past performance doesn't guarantee future results. Always conduct your own research, understand the risks, and consult a financial professional before making investment decisions.

Generated on: 2/12/2025, 3:35:03 AM