Oncology drugmaker Exelixis' Q3 revenue, adjusted net income beat estimates

Overview

• US oncology drugmaker's Q3 revenue rose, beating analyst expectations

• Adjusted net income for Q3 beat analyst expectations

• Company repurchased $402 mln in shares during the quarter under stock buyback program

Outlook

• Exelixis maintains 2026 total revenue guidance at $2.5 bln to $2.55 bln

• Company expects 2026 net product revenues of $2.3 bln to $2.35 bln

• Exelixis lowers 2026 effective tax rate guidance to 16%-18% from 21%-23%

Result Drivers

• CABOZANTINIB SALES - Co said higher US net product revenue was driven by increased sales volume and higher average net selling price

• COLLABORATION REVENUE DECLINE - Co said lower collaboration revenue reflected decreased milestone-related revenue and lower development cost reimbursements, partly offset by higher royalties from partner sales outside the U.S.

• HIGHER OPERATING EXPENSES - Co said research and development and selling, general and administrative expenses rose due to increased personnel, clinical trial costs, marketing, and legal fees

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 7 "strong buy" or "buy", 11 "hold" and 1 "sell" or "strong sell"

• The average consensus recommendation for the biotechnology & medical research peer group is "buy."

• Wall Street's median 12-month price target for Exelixis Inc is $54.00, about 18.5% below its October 28 closing price of $66.28

• The stock recently traded at 18 times the next 12-month earnings vs. a P/E of 16 three months ago

Reuters Recommended Reads

• Oct 29 - Merck Q3 profit beats on Keytruda demand

• Oct 29 - US drugmaker Eli Lilly beats Q3 revenue estimates on product demand, lifts FY outlook

• Oct 28 - GSK Q3 profit tops estimates on oncology sales; declares dividend

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)