Exelixis Q2 Earnings Call Highlights

Exelixis Q2 revenue reached approximately $629 million, driven by $573 million in U.S. cabozantinib franchise net product revenue. However, Exelixis lowered its full-year 2026 revenue outlook by reducing the midpoint $50 million, citing a slower-than-expected ramp in the neuroendocrine tumor indication. Zanzalintinib remains central to Exelixis’ growth strategy, with the FDA expected to decide by early December on its colorectal cancer application in combination with atezolizumab. The company is also advancing seven ongoing or imminent pivotal studies across colorectal, renal, neuroendocrine and other cancers. Exelixis reported approximately $212 million in GAAP net income and repurchased $312 million of stock during the quarter. Cash and marketable securities totaled about $1.4 billion at June 30, supporting continued investment in clinical trials and capital returns.

Exelixis NASDAQ: EXEL reported second-quarter 2026 revenue of approximately $629 million, including $573 million in cabozantinib franchise net product revenue, as the company prepared for a potential late-year launch of zanzalintinib in colorectal cancer and advanced a broader development program for the drug candidate. President and Chief Executive Officer Mike Morrissey said the company is entering its next growth phase as it seeks to build a multi-franchise oncology business beyond cabozantinib, marketed as CABOMETYX. Zanzalintinib, or Zanza, is Exelixis’ highest research and development priority and is under FDA review in combination with atezolizumab for previously treated colorectal cancer.

The FDA has set a PDUFA date in early December for the Zanza colorectal cancer application, which is supported by results from the STELLAR-303 trial. Morrissey described the potential colorectal cancer approval as an important first step toward establishing Zanza as Exelixis’ second oncology franchise.

U.S. cabozantinib franchise net product revenue increased about 10% year over year to $573 million in the second quarter, while global cabozantinib franchise net product revenue, including partner sales, rose about 13% to $806 million, according to Morrissey. Chief Financial Officer Chris Senner said CABOMETYX net product revenue totaled $571 million, including approximately $2.7 million in clinical trial sales. The company also recorded about $53 million in royalties from partners Ipsen and Takeda related to their cabozantinib sales.

Exelixis lowered and narrowed its full-year 2026 total revenue and net product revenue outlook, reducing the midpoint by $50 million. Senner said the update reflects modestly slower growth due to a more gradual-than-expected ramp in the neuroendocrine tumor, or NET, indication. The company also reduced its R&D expense guidance, lowering the midpoint of that range by $50 million. Morrissey said Exelixis expects projected free cash flow to remain essentially unchanged as it balances investment in its pivotal trials with expense discipline. P.J. Haley, executive vice president of commercial, said the slower NET revenue ramp was tied to characteristics of the patient population rather than a change in the company’s long-term view of the market. NET tumors can be more indolent than other solid tumors, and patients may be scanned less frequently, remain on their existing treatment longer, or take treatment breaks before moving to a subsequent therapy. Despite those dynamics, Haley said CABOMETYX achieved more than 45% of oral second-line-plus new-patie...