We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Exelixis (EXEL) Q4 Earnings Top, Revenues Beat on Cabometyx
Read MoreHide Full Article
Exelixis, Inc. (EXEL - Free Report) reported a loss of 3 cents per share for the fourth quarter of 2022, compared to earnings of 35 cents per share in the year-ago quarter, but it was narrower than the Zacks Consensus Estimate of a loss of 5 cents and our estimate of a loss of 6 cents.
Including stock-based compensation expense, loss per share came in at 9 cents as compared to earnings of 29 cents in the year-ago quarter due to an increase in operating expenses and a decline in revenues.
Net revenues came in at $423.9 million, which surpassed the Zacks Consensus Estimate of $422 million but was down from the $451 million reported in the year-ago quarter. Revenues also surpassed our estimate of $414 million.
Exelixis’ shares have lost 8.9% in the past year compared with the industry’s decline of 9.5%.
Image Source: Zacks Investment Research
Quarter in Detail
Net product revenues came in at $377.4 million, up from $302.7 million in the year-ago quarter. The increases in net product revenues were primarily due to increases in sales volume, which were partially offset by higher discounts and allowances, driven primarily by chargebacks related to the 340B Drug Pricing Program.
Cabometyx (cabozantinib) generated revenues of $372.6 million. It is approved for advanced renal cell carcinoma (RCC) and previously treated hepatocellular carcinoma (HCC). Cometriq (cabozantinib capsules) for the treatment of medullary thyroid cancer generated $4.9 million in net product revenues.
Collaboration revenues, comprising license revenues and collaboration services revenues, were $46.5 million in the quarter, down from $148.5 million in the year-ago quarter. The decreases in collaboration revenues were primarily related to decreases in the recognition of milestone-related revenues and in development cost reimbursements earned.
In the reported quarter, research and development expenses were $336.8 million, up from $222.3 million in the year-ago quarter. The increases in research and development expenses were primarily related to increases in license and other collaboration costs, personnel expenses, consulting and outside services costs, and clinical trial costs. Selling, general and administrative expenses were $119.3 million, up from $99.3 million in the year-ago quarter.
Pipeline Update
In October 2022, Exelixis announced the expansion of its June 2021 Clinical Trial Collaboration and Supply Agreement with Bristol-Myers (BMY - Free Report) to include the use of the fixed-dose combination of Opdivo and relatlimab in the ongoing phase Ib STELLAR-002 clinical trial, which is evaluating zanzalintinib (formerly XL092) in combination with multiple immune checkpoint inhibitors in advanced solid tumors.
Bristol-Myers’ Opdivo, one of its leading revenue generators, is approved for various oncology indications.
In November 2022, Exelixis entered into an exclusive clinical development and option agreement with Sairopa B.V. for ADU-1805. Under the terms of the agreement, Exelixis has the option to obtain an exclusive, worldwide license to develop and commercialize ADU-1805 and other anti-SIRPα antibodies upon review of data from prespecified phase 1 clinical studies of ADU-1805 to be completed by Sairopa during the option period. Exelixis expects its partner Sairopa to file an Investigational New Drug application (IND) for ADU-1805 in the first quarter of 2023.
Exelixis also entered into an exclusive collaboration agreement with Cybrexa Therapeutics, which gave it the right to acquire CBX-12 (alphalex exatecan), a clinical-stage, first-in-class peptide-drug conjugate (PDC) that utilizes Cybrexa’s proprietary alphalex technology to enhance the delivery of exatecan to tumor cells.
Revenues in 2022 came in at $1.611 billion, up from $1.434 billion in 2021 and surpassed the Zacks Consensus Estimate of $1.60 billion. Adjusted earnings came in at 82 cents as compared to $1.01 in 2021.
2023 Guidance
Revenues are projected between $1.775 billion and $1.875 billion, while product revenues are estimated in the range of $1.575 billion-1.675 billion.
Our Take
Exelixis’ fourth-quarter results were decent. Demand continues to grow based on sales volume being driven by the Cabometyx and Opdivo combination. Per the company, Cabometyx maintained its status as the leading TKI for RCC in both the first-line I/O-TKI market and the second-line monotherapy segment.
Exelixis is striving hard to develop its portfolio beyond Cabometyx and progressed three promising biotherapeutics, XB010, XB014 and XB628, from internal discovery into preclinical development.
Over the past 60 days, loss estimates for Syndax for 2022 have narrowed to $2.48 from $2.53. Syndax also surpassed estimates in each of the trailing four quarters, with the average surprise being 95.39%.
Over the past 60 days, earnings estimates for Dynavax for 2022 have increased by 11 cents to $1.95. Dynavax also surpassed estimates in two of the trailing four quarters, with the average surprise being 73.15%.
Unique Zacks Analysis of Your Chosen Ticker
Pick one free report - opportunity may be withdrawn at any time
Image: Bigstock
Exelixis (EXEL) Q4 Earnings Top, Revenues Beat on Cabometyx
Exelixis, Inc. (EXEL - Free Report) reported a loss of 3 cents per share for the fourth quarter of 2022, compared to earnings of 35 cents per share in the year-ago quarter, but it was narrower than the Zacks Consensus Estimate of a loss of 5 cents and our estimate of a loss of 6 cents.
Including stock-based compensation expense, loss per share came in at 9 cents as compared to earnings of 29 cents in the year-ago quarter due to an increase in operating expenses and a decline in revenues.
Net revenues came in at $423.9 million, which surpassed the Zacks Consensus Estimate of $422 million but was down from the $451 million reported in the year-ago quarter. Revenues also surpassed our estimate of $414 million.
Exelixis’ shares have lost 8.9% in the past year compared with the industry’s decline of 9.5%.
Image Source: Zacks Investment Research
Quarter in Detail
Net product revenues came in at $377.4 million, up from $302.7 million in the year-ago quarter. The increases in net product revenues were primarily due to increases in sales volume, which were partially offset by higher discounts and allowances, driven primarily by chargebacks related to the 340B Drug Pricing Program.
Cabometyx (cabozantinib) generated revenues of $372.6 million. It is approved for advanced renal cell carcinoma (RCC) and previously treated hepatocellular carcinoma (HCC). Cometriq (cabozantinib capsules) for the treatment of medullary thyroid cancer generated $4.9 million in net product revenues.
Collaboration revenues, comprising license revenues and collaboration services revenues, were $46.5 million in the quarter, down from $148.5 million in the year-ago quarter. The decreases in collaboration revenues were primarily related to decreases in the recognition of milestone-related revenues and in development cost reimbursements earned.
In the reported quarter, research and development expenses were $336.8 million, up from $222.3 million in the year-ago quarter. The increases in research and development expenses were primarily related to increases in license and other collaboration costs, personnel expenses, consulting and outside services costs, and clinical trial costs. Selling, general and administrative expenses were $119.3 million, up from $99.3 million in the year-ago quarter.
Pipeline Update
In October 2022, Exelixis announced the expansion of its June 2021 Clinical Trial Collaboration and Supply Agreement with Bristol-Myers (BMY - Free Report) to include the use of the fixed-dose combination of Opdivo and relatlimab in the ongoing phase Ib STELLAR-002 clinical trial, which is evaluating zanzalintinib (formerly XL092) in combination with multiple immune checkpoint inhibitors in advanced solid tumors.
Bristol-Myers’ Opdivo, one of its leading revenue generators, is approved for various oncology indications.
In November 2022, Exelixis entered into an exclusive clinical development and option agreement with Sairopa B.V. for ADU-1805. Under the terms of the agreement, Exelixis has the option to obtain an exclusive, worldwide license to develop and commercialize ADU-1805 and other anti-SIRPα antibodies upon review of data from prespecified phase 1 clinical studies of ADU-1805 to be completed by Sairopa during the option period. Exelixis expects its partner Sairopa to file an Investigational New Drug application (IND) for ADU-1805 in the first quarter of 2023.
Exelixis also entered into an exclusive collaboration agreement with Cybrexa Therapeutics, which gave it the right to acquire CBX-12 (alphalex exatecan), a clinical-stage, first-in-class peptide-drug conjugate (PDC) that utilizes Cybrexa’s proprietary alphalex technology to enhance the delivery of exatecan to tumor cells.
Exelixis, Inc. Price and EPS Surprise
Exelixis, Inc. price-eps-surprise | Exelixis, Inc. Quote
2022 Results
Revenues in 2022 came in at $1.611 billion, up from $1.434 billion in 2021 and surpassed the Zacks Consensus Estimate of $1.60 billion. Adjusted earnings came in at 82 cents as compared to $1.01 in 2021.
2023 Guidance
Revenues are projected between $1.775 billion and $1.875 billion, while product revenues are estimated in the range of $1.575 billion-1.675 billion.
Our Take
Exelixis’ fourth-quarter results were decent. Demand continues to grow based on sales volume being driven by the Cabometyx and Opdivo combination. Per the company, Cabometyx maintained its status as the leading TKI for RCC in both the first-line I/O-TKI market and the second-line monotherapy segment.
Exelixis is striving hard to develop its portfolio beyond Cabometyx and progressed three promising biotherapeutics, XB010, XB014 and XB628, from internal discovery into preclinical development.
Zacks Rank & Stocks to Consider
Exelixis currently carries a Zacks Rank #3 (Hold). A couple of better-ranked stocks in the biotech sector are Syndax Pharmaceuticals (SNDX - Free Report) and Dynavax Technologies (DVAX - Free Report) , both carry a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Over the past 60 days, loss estimates for Syndax for 2022 have narrowed to $2.48 from $2.53. Syndax also surpassed estimates in each of the trailing four quarters, with the average surprise being 95.39%.
Over the past 60 days, earnings estimates for Dynavax for 2022 have increased by 11 cents to $1.95. Dynavax also surpassed estimates in two of the trailing four quarters, with the average surprise being 73.15%.