Exelixis shares tumble as revenue miss

Investing.com -- Exelixis, Inc. (NASDAQ:EXEL) shares plunged 10.2% after the biopharmaceutical company reported second-quarter revenue that fell short of analyst expectations.

The cancer-focused drugmaker posted adjusted earnings per share of $0.75 for the second quarter, exceeding the analyst estimate of $0.64. However, revenue came in at $568.3 million, missing the consensus estimate of $578.46 million, despite showing growth compared to the $637.2 million reported in the same quarter last year. The company also maintained its full-year 2025 revenue guidance of $2.25-2.35 billion, with the midpoint of $2.3 billion falling below analyst expectations of $2.341 billion.

"Exelixis continued to execute on our corporate objectives in the second quarter of 2025, delivering on key commercial, development and pipeline milestones," said Michael M. Morrissey, Ph.D., President and Chief Executive Officer of Exelixis. "While early in the launch, we’re very pleased with the reception that CABOMETYX has received in advanced neuroendocrine tumors."

The company reported that net product revenues increased to $520.0 million from $437.6 million in the same period last year, primarily due to higher sales volume. However, collaboration revenues dropped significantly to $48.2 million from $199.6 million YoY, largely due to the absence of a $150 million commercial milestone recognized in the second quarter of 2024.

Research and development expenses decreased to $200.4 million from $211.1 million in the comparable period of 2024, while selling, general and administrative expenses rose slightly to $134.9 million from $132.0 million.

The company highlighted progress in its pipeline, including positive topline results from the STELLAR-303 pivotal study for zanzalintinib in colorectal cancer, and completion of enrollment in the STELLAR-304 study in non-clear cell renal cell carcinoma.

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