Exelixis Inc. (NASDAQ:EXEL) on Monday reported its first quarter of 2025 adjusted earnings of 75 cents per share, compared to 85 cents a year ago, beating the consensus of 56 cents.
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The cancer-focused company reported quarterly sales of $568.3 million, missing the consensus of $571.27 million.
Total revenues for the quarter included cabozantinib franchise net product revenues of $520 million compared to $437.6 million for the comparable period in 2024. The increase in net product revenues was primarily due to increased sales volume.
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Guidance: Exelixis maintained its fiscal 2025 sales guidance of $2.25 billion-$2.35 billion compared to the consensus of $2.334 billion.
Pipeline update: In May, the company completed enrollment in the STELLAR-304 pivotal study in non-clear cell renal cell carcinoma. Depending on study event rates, top-line results are expected in the first half of 2026, a delay from the second half of 2025.
Exelixis also said that based on evaluating emerging data from the phase 2 portion of the STELLAR-305 study in advanced squamous cell carcinoma of the head and neck, emerging competition in this indication, and assessment of other potentially larger commercial opportunities, it has decided not to proceed to the phase 3 portion of the trial. The trial was expected to begin in the second half of 2025.
During the quarter, the company also initiated the STELLAR-311 pivotal study in advanced neuroendocrine tumors (NET) and plans to announce an additional wave of zanzalintinib pivotal trials in the coming months.
William Blair writes, “Following a beat-and-raise first quarter driven by the strength of the Cabometyx franchise, we were surprised by the roughly $9 million revenue miss.”
Regarding flagship product Cabometyx, William Blair is encouraged by its continued strength in renal cell carcinoma (RCC) and expects the opportunity in late-line NETs to potentially drive the next leg of growth. The NETs market is expected to grow at a 9% compound annual rate to $4.6 billion by 2030.
Based on prior analysis, the analyst writes that the total addressable market for Cabometyx in this indication stands at $900 million, thus representing a material expansion opportunity.
Given the 35% market share in second-line and later settings as of the end of the second quarter, William Blair sees potential for this indication to contribute meaningfully to the growth of the Cabometyx franchise.
Other Analyst Ratings:
Stifel maintains Exelixis with a Hold, raising the price forecast from $38 to $41.
Guggenheim reiterates Exelixis with a Buy and maintains $45 price forecast.
JMP Securities reiterates Exelixis with a Market Outperform and maintains $50 price forecast.
EXEL Price Action: Exelis stock is down 16.46% at $37.09 at publication on Tuesday.
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