EXEL Q1 Earnings Beat, 2025 Sales View Up as Cabometyx Drives Top Line

Core Viewpoint - Exelixis, Inc. reported strong first-quarter 2025 results, exceeding earnings expectations and showing significant revenue growth driven by its lead drug, Cabometyx [1][2]. Financial Performance - Adjusted earnings were 62 cents per share, surpassing the Zacks Consensus Estimate of 42 cents, and up from 17 cents per share in the same quarter last year [1][2]. - Net revenues reached $555.4 million, exceeding the Zacks Consensus Estimate of$503 million, and reflecting a 31% year-over-year increase [2]. - Net product revenues were $513.3 million, a 36$510.9 million, beating the Zacks Consensus Estimate of $433.7 million and the model estimate of$457.3 million [4]. - Collaboration revenues totaled $42.2 million, a decrease of 10$46.7 million in the previous year, attributed to lower royalty revenues from collaboration partners [5]. Expense Management - Research and development expenses amounted to $212.2 million, down 7$137.2 million, driven by higher personnel and marketing expenses [6]. Guidance and Future Outlook - Exelixis raised its 2025 sales guidance, now expecting total revenues between $2.25 billion and$2.35 billion, up from the previous range of $2.15 billion to$2.25 billion [8]. - The company anticipates research and development expenses in the range of $925 million to$975 million and selling, general and administrative expenses between $475 million and$525 million for 2025 [10]. Regulatory and Pipeline Updates - In March 2025, Exelixis received FDA approval for the label expansion of Cabometyx for treating neuroendocrine tumors, making it the first systemic treatment approved for this indication [11][12]. - The company is also developing zanzalintinib, with promising results from a phase Ib/II trial showing better efficacy when combined with Tecentriq [13][14].