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Highlights
- Exelixis expects FY25 net product revenues between $1.95-$2.05 billion, with potential FDA approval for CABOMETYX.
- Company achieved strong FY2024 performance with ~$1.805 billion in net product revenues.
- Exelixis plans multiple data readouts for zanzalintinib and continues $500M stock repurchase program.
Exelixis (NASDAQ:EXEL), a biotechnology company focused on developing and commercializing innovative treatments for cancer, has announced preliminary financial results for fiscal year 2024, highlighting strong performance driven by its cabozantinib franchise. For FY2024, the company generated approximately $1.805 billion in U.S. net product revenues, with total revenues reaching around $2.165 billion. This marks a solid year of growth for Exelixis, as the company’s flagship drug, CABOMETYX, continues to be a key revenue driver.
Looking forward to fiscal year 2025, Exelixis has provided a positive revenue guidance range of $1.95 billion to $2.05 billion in net product revenues, along with total revenues projected to reach between $2.15 billion and $2.25 billion. This forecast includes a 2.8% price increase for CABOMETYX, which will take effect in January 2025. However, the guidance does not account for any potential revenues from CABOMETYX’s new indication in neuroendocrine tumors (NET), which is pending FDA approval.
Strong Performance in FY2024 and Growth Prospects for FY2025
Exelixis has delivered strong financial performance in FY2024, with U.S. net product revenues from CABOMETYX reaching $1.805 billion, contributing significantly to the company’s total revenues of approximately $2.165 billion. CABOMETYX, a treatment for advanced kidney cancer, continues to gain traction in the oncology market, with its approval for additional indications expected to drive further growth.
For FY2025, Exelixis anticipates continued growth with projected net product revenues between $1.95 billion and $2.05 billion. This growth is expected to be fueled by the price increase for CABOMETYX, effective in January 2025, as well as the ongoing market adoption of the drug. The company’s strong cash position, with around $1.75 billion in cash and marketable securities, provides a solid foundation to support its operations and strategic initiatives.
Key Developments and Pipeline Progress
Exelixis is poised for key developments in 2025, which could significantly impact its future growth. One of the most anticipated events is the potential FDA approval of CABOMETYX for the treatment of neuroendocrine tumors (NET), with a Prescription Drug User Fee Act (PDUFA) date set for April 3, 2025. If approved, this indication would expand CABOMETYX’s market potential and drive additional revenue growth for Exelixis.
The company also plans multiple data readouts for its investigational drug, zanzalintinib, in 2025. These readouts could provide valuable insights into the potential of zanzalintinib to treat various types of cancer, further bolstering Exelixis’ oncology portfolio and creating additional opportunities for growth.
Financial Outlook and Expense Projections
Exelixis has projected R&D expenses for 2025 to be in the range of $925 million to $975 million, which represents an increase compared to the ~$910 million spent in 2024. The higher R&D expenses reflect the company’s ongoing investment in clinical trials and pipeline development, particularly for zanzalintinib and other potential indications for CABOMETYX.
Additionally, the company expects its SG&A expenses in 2025 to range from $475 million to $525 million, reflecting continued investment in sales, marketing, and infrastructure to support its growing business. Exelixis also expects an effective tax rate of 21-23% in 2025, which represents an increase compared to previous years.
Ongoing Stock Repurchase Program
As part of its capital allocation strategy, Exelixis continues its $500 million stock repurchase program. As of now, the company has repurchased $205.6 million worth of its stock at an average price of $33.62 per share. This repurchase program reflects the company’s commitment to returning value to its shareholders while maintaining a strong balance sheet.
