Exelixis Lifts Quarterly Revenue To $658.7 Million, Cuts Tax-Rate Outlook To 16%-18%
The cancer drugmaker held its 2026 revenue range at $2.500 billion to $2.550 billion while lowering its expected tax rate.
Exelixis, the oncology company behind the kidney and liver cancer drug Cabometyx, reported third-quarter revenue of $658.7 million, up from $597.8 million a year earlier. It kept its 2026 revenue forecast unchanged and cut its expected tax rate to 16% to 18%, from 21% to 23%, the company said Thursday in an 8-K filing.
Cabozantinib carries the quarter
U.S. net product revenue from cabozantinib, the drug sold as Cabometyx tablets and Cometriq capsules, was $604.9 million, against $542.9 million a year earlier. Cabometyx accounted for $603.2 million and Cometriq for $1.8 million. The company said the increase came mainly from higher sales volume and a higher average net selling price.
Collaboration revenue slipped to $53.8 million from $54.8 million, on lower milestone revenue and lower development cost reimbursements, partly offset by higher royalties from Ipsen. Exelixis earned $51.8 million in royalties on cabozantinib sales by its partners Ipsen and Takeda.
GAAP net income was $218.1 million, or $0.85 per diluted share, against $193.6 million, or $0.69. Adjusted earnings, which exclude stock-based compensation, were $0.94 per diluted share, against $0.78. The company said per-share results also benefited from a lower share count because of buybacks: diluted weighted-average shares were 255.754 million, down from 278.535 million.
Guidance: revenue steady, tax rate lower
The 2026 outlook keeps total revenue at $2.500 billion to $2.550 billion and net product revenue at $2.300 billion to $2.350 billion. Cost of goods sold is now expected at about 4% of net product revenue, narrowed from 3.5% to 4.5%. Research and development spending stays at $825 million to $875 million, and selling, general and administrative spending at $575 million to $625 million.
The guidance excludes any revenue from a possible U.S. approval of zanzalintinib, the company's next potential franchise drug.
Buybacks and generic timing
A $750 million repurchase program authorized in May 2026 had used $402.1 million by the end of the quarter, at an average of $54.03 per share. Since the first program in March 2023, Exelixis has bought back $3.2 billion of stock, retiring 97.8 million shares at an average of $32.25.
On generics, Exelixis settled with Azurity Pharmaceuticals on October 28, licensing its proposed 505(b)(2) product from December 1, 2030, if the FDA approves it. The date for settled generic cabozantinib products remains January 1, 2031. Separately, the Federal Circuit in August upheld three Exelixis patents against MSN Laboratories, so any final FDA approval of MSN's generic version can come no earlier than January 15, 2030, subject to further appeals. A trial on a separate patent is scheduled for November 2026.
Zanzalintinib dates ahead
The FDA extended its review of zanzalintinib, combined with atezolizumab, for previously treated metastatic colorectal cancer. The decision target is now March 3, 2027. Exelixis also expects topline results from the STELLAR-304 trial in non-clear cell kidney cancer in the first quarter of 2027.
The FDA's March 3, 2027 target date for zanzalintinib in colorectal cancer is the next fixed decision point for the company.
