•
Sep 30, 2024

Exelixis Q3 2024 Earnings Report

Exelixis's financial performance for Q3 2024 was reported, featuring increased total revenues and net product revenues guidance, along with a favorable ruling on cabozantinib patent litigation and expanded collaboration with Merck for zanzalintinib development.

Key Takeaways

Exelixis announced strong Q3 2024 financial results with total revenues of $539.5 million and GAAP diluted EPS of $0.40. The company is increasing full year guidance for total and net product U.S. revenues due to the strong commercial performance of the cabozantinib franchise. Additionally, a favorable ruling was received on cabozantinib patent litigation, and a collaboration with Merck was expanded for the zanzalintinib development program.

Total revenues reached $539.5 million, compared to $471.9 million for the comparable period in 2023.

GAAP diluted EPS was $0.40, while non-GAAP diluted EPS was $0.47.

Net product revenues from the cabozantinib franchise in the U.S. were $478.1 million.

Collaboration revenues were $61.5 million, driven by milestone-related revenues and higher royalty revenues from cabozantinib sales outside the U.S.

Total Revenue
$540M
Previous year: $472M
+14.3%
EPS
$0.47
Previous year: $0.1
+370.0%
R&D Expenses
$223M
Previous year: $333M
-33.1%
SG&A Expenses
$112M
Previous year: $138M
-19.0%
Tax Expense
$36.8M
Previous year: $4.8M
+666.7%
Gross Profit
$522M
Previous year: $453M
+15.2%
Cash and Equivalents
$1.19B
Previous year: $1.1B
+7.8%
Free Cash Flow
$263M
Previous year: $108M
+143.7%
Total Assets
$2.96B
Previous year: $2.98B
-0.6%

Exelixis

Exelixis

Exelixis Revenue by Segment

Forward Guidance

Exelixis provided updated financial guidance for fiscal year 2024, increasing total revenues to $2.150 billion - $2.200 billion and net product revenues to $1.775 billion - $1.825 billion.

Positive Outlook

  • Total revenues are expected to be between $2.150 billion and $2.200 billion.
  • Net product revenues are projected to be between $1.775 billion and $1.825 billion.
  • Cost of goods sold is estimated to be approximately 4.5% of net product revenues.
  • Effective tax rate is expected to be between 21% and 22%.
  • The company anticipates preliminary results from the STELLAR-303 study in 2025.

Challenges Ahead

  • Research and development expenses are projected to be between $925 million and $950 million.
  • Selling, general, and administrative expenses are expected to be between $475 million and $500 million.
  • Financial guidance excludes expenses related to the restructuring plan announced in January 2024.
  • Financial guidance excludes impairment of long-lived assets announced in October 2024.
  • The judgement from the District Court is subject to appeal by either party.

Revenue & Expenses

Visualization of income flow from segment revenue to net income