Exelixis Cuts Revenue Outlook as Cabozantinib Sales Accelerate
The cancer-drug maker lowered its 2026 total-revenue forecast to $2.500 billion to $2.550 billion.
Exelixis (EXEL), the cancer-drug maker, reported accelerating cabozantinib sales in the second quarter, though it reduced its full-year revenue outlook. U.S. net product revenue from the treatment rose 10.2% from a year earlier, compared with 8.1% growth in the first quarter and 6.1% in the fourth quarter of 2024. The company attributed the gains primarily to sales volume.
The results extended a run of sequential revenue growth, while the revised forecast tempered expectations for the rest of the year. Total revenue increased to $628.7 million from $610.8 million in the first quarter and $598.7 million in the fourth quarter.
Second-quarter revenue rose 10.6% from $568.3 million a year earlier. GAAP net income increased 14.7% to $212.1 million, and diluted earnings rose 26.2% to $0.82 a share from $0.65. The faster earnings growth reflected a lower weighted-average share count following repurchases.
Cabozantinib generated $573.0 million in U.S. net product revenue, up from $520.0 million a year earlier and $555.0 million in the first quarter. Collaboration revenue rose 15.4% to $55.7 million as higher Ipsen royalties outweighed lower development reimbursements, though its year-over-year growth slowed from about 32% in the previous quarter.
Operating income increased 16.3% to $248.4 million as revenue grew faster than expenses, lifting the operating margin to about 39.5% from 37.6%. Research-and-development spending rose 5.8% to $212.0 million on higher clinical-trial, manufacturing and collaboration costs, while selling, general and administrative expense increased 9.5% to $147.6 million amid higher marketing and personnel costs.
Exelixis now expects 2026 net product revenue of $2.300 billion to $2.350 billion, lowering the midpoint by $50 million and the upper end by $75 million. The forecast excludes potential revenue from a zanzalintinib colorectal-cancer launch. The company also cut its R&D-expense outlook by $50 million at both ends to $825 million to $875 million and maintained its SG&A forecast of $575 million to $625 million.
Pipeline activity advanced as Merck began the phase 3 LITESPARK-034 trial and Exelixis started a phase 2 meningioma study and enrolled patients in additional bladder- and prostate-cancer cohorts. A final STELLAR-303 analysis found a non-statistically significant overall-survival trend for zanzalintinib plus atezolizumab among patients without liver metastases; the previously reported result for the full intention-to-treat population was statistically positive.
Exelixis repurchased $311.6 million of stock during the quarter at an average $47.85 a share, completing its October 2024 program and beginning purchases under the additional $750 million authorization approved in May. The company had repurchased $2.9 billion of stock since March 2023, reducing the share count as clinical spending and the zanzalintinib program remained central to its outlook.