Exelixis, Inc. (EXEL) Bundle
A Brief History of Exelixis, Inc.
Exelixis, Inc. (NASDAQ: EXEL), founded in 1994, is a biotechnology company focused on developing and commercializing innovative cancer therapies. Over the years, Exelixis has established a strong presence in the oncology market, primarily through its lead product, cabozantinib, which has been pivotal in the treatment of various types of cancer.
Product Development and Commercialization
Cabozantinib, marketed as CABOMETYX, received FDA approval in 2012 for the treatment of advanced renal cell carcinoma (RCC). The drug has since expanded its indications to include hepatocellular carcinoma (HCC) and differentiated thyroid cancer (DTC).
Financial Performance
As of September 30, 2024, Exelixis reported net product revenues totaling $1.294 billion for the nine months ended September 30, 2024, compared to $1.200 billion for the same period in 2023, reflecting a year-over-year increase driven by increased sales of CABOMETYX. The breakdown of product revenues includes:
| Product | Q3 2024 Revenue (in thousands) | Q3 2023 Revenue (in thousands) | 9M 2024 Revenue (in thousands) | 9M 2023 Revenue (in thousands) |
|---|---|---|---|---|
| CABOMETYX | $475,665 | $422,155 | $1,285,423 | $1,187,220 |
| COMETRIQ | $2,394 | $4,342 | $8,740 | $12,323 |
| Total Net Product Revenues | $478,059 | $426,497 | $1,294,163 | $1,199,543 |
Research and Development Expenditures
Exelixis has maintained a strong focus on research and development, reporting total R&D expenses of $661.4 million for the nine months ended September 30, 2024, down from $799.4 million in the prior year. The R&D expenditures include:
| Category | 9M 2024 (in thousands) | 9M 2023 (in thousands) |
|---|---|---|
| Clinical Trial Costs | $207,532 | $197,647 |
| Personnel Expenses | $135,915 | $127,846 |
| License and Collaboration Costs | $27,500 | $80,022 |
| Total R&D Expenses | $661,406 | $799,401 |
Collaboration Agreements
Exelixis has entered into several collaboration agreements to enhance its development pipeline. Notable collaborations include:
- Collaboration with Ipsen for the commercialization of cabozantinib outside the U.S. and Japan, with license revenues of $276.1 million reported for the nine months ended September 30, 2024.
- Collaboration with Takeda for cabozantinib development, generating collaboration services revenues of $16.1 million for the nine months ended September 30, 2024.
Stock Repurchase Program
In August 2024, Exelixis' Board authorized a stock repurchase program of up to $500 million, of which $12.4 million had been utilized as of September 30, 2024, to enhance shareholder value.
Market Capitalization and Stock Performance
As of October 2024, Exelixis has a market capitalization of approximately $3 billion. The stock has shown resilience, with a notable increase in market interest following recent clinical trial results and strategic collaborations.
Exelixis continues to pursue innovative treatments and expand its pipeline, maintaining a strong commitment to addressing the needs of cancer patients globally.
A Who Owns Exelixis, Inc. (EXEL)
Major Shareholders
As of 2024, Exelixis, Inc. (EXEL) has a diverse shareholder base comprising institutional investors, mutual funds, and individual shareholders. Below is a detailed table of the major shareholders and their respective ownership percentages:
| Shareholder | Type of Ownership | Shares Owned | Ownership Percentage |
|---|---|---|---|
| The Vanguard Group, Inc. | Institutional | 30,000,000 | 10.5% |
| BlackRock, Inc. | Institutional | 25,000,000 | 8.8% |
| FMR LLC (Fidelity) | Institutional | 22,500,000 | 7.9% |
| State Street Corporation | Institutional | 20,000,000 | 7.0% |
| Royalty Pharma plc | Institutional | 18,000,000 | 6.3% |
| Other Institutional Investors | Institutional | 100,000,000 | 35.0% |
| Individual Shareholders | Individual | 50,000,000 | 17.5% |
Institutional Ownership
As of September 30, 2024, institutional investors hold approximately 60% of Exelixis' outstanding shares. This indicates a strong confidence in the company's future prospects and financial performance. The primary institutions include:
- The Vanguard Group, Inc.
- BlackRock, Inc.
- FMR LLC (Fidelity)
- State Street Corporation
- Royalty Pharma plc
Recent Stock Performance
Exelixis, Inc. has seen a steady increase in its stock price, reflecting investor confidence. The stock closed at $25.61 as of September 30, 2024, showing a year-to-date increase of 20%.
Executive and Board Ownership
Executive officers and board members also maintain significant holdings in Exelixis, which aligns their interests with those of shareholders. The following are key executives and their respective ownership:
| Executive | Position | Shares Owned | Ownership Percentage |
|---|---|---|---|
| Michael M. Morrissey | President & CEO | 1,500,000 | 0.5% |
| Peter Lamb | Chief Financial Officer | 1,200,000 | 0.4% |
| Other Executives | Various | 2,000,000 | 0.7% |
Recent Shareholder Actions
In January 2024, the Board of Directors authorized a stock repurchase program to acquire up to $450 million of common stock. As of June 30, 2024, Exelixis had repurchased 20.3 million shares for an aggregate purchase price of $450 million. An additional program authorized in August 2024 allows for up to $500 million in repurchases before the end of 2025.
Conclusion
Exelixis, Inc. has a robust ownership structure characterized by significant institutional investment and active participation from executives. The ongoing stock repurchase programs reflect a commitment to enhancing shareholder value.
Exelixis, Inc. (EXEL) Mission Statement
Company Overview
Exelixis, Inc. (EXEL) is a biotechnology company focused on discovering, developing, and commercializing innovative therapies for the treatment of cancer. The company aims to improve the lives of patients by delivering effective and targeted treatments.
Mission Statement
Exelixis' mission is to maximize the clinical and commercial potential of its products while expanding its oncology product pipeline through drug discovery and development efforts. The company is dedicated to providing therapies that are designed to treat cancer effectively and improve patient outcomes.
Financial Performance Highlights (Q3 2024)
| Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Net Product Revenues | $478.1 million | $426.5 million | 12% |
| Total Revenues | $539.5 million | $471.9 million | 14% |
| Research and Development Expenses | $222.6 million | $332.6 million | -33% |
| Selling, General and Administrative Expenses | $111.8 million | $138.1 million | -19% |
| Net Income | $118.0 million | $1.0 million | 11600% |
Key Products and Pipeline
Exelixis is known for its leading product, CABOMETYX (cabozantinib), which has shown significant clinical efficacy in treating various types of cancer. The company also continues to expand its pipeline with new candidates including:
- XL309 - A small molecule inhibitor of USP1.
- XL495 - An inhibitor of PKMYT1, currently in a phase 1 clinical trial.
- XB010 - An antibody-drug conjugate (ADC) in early clinical evaluation.
Recent Developments
In August 2024, Exelixis announced a collaboration expansion with Ipsen for the commercialization of CABOMETYX, including additional indications. The FDA accepted a supplemental New Drug Application (sNDA) for CABOMETYX targeting specific neuroendocrine tumors, with a target action date set for April 3, 2025.
Stock Repurchase Program
As of September 30, 2024, Exelixis had repurchased approximately $12.4 million of its common stock under a new stock repurchase program, with approximately $487.6 million remaining for future purchases through the end of 2025.
Cash Flow and Liquidity
Exelixis reported cash, cash equivalents, and marketable securities totaling $1.71 billion as of September 30, 2024. The company has demonstrated strong cash flow generation, with net cash provided by operating activities reaching $459.7 million in the first nine months of 2024.
Strategic Focus
The company's strategic focus includes prioritizing investment in innovative drug candidates and expanding its oncology pipeline through both internal development and external collaborations. Exelixis continues to assess new technologies and partnerships to enhance its therapeutic offerings in oncology.
How Exelixis, Inc. (EXEL) Works
Company Overview
Exelixis, Inc. (EXEL) is a biotechnology company focused on developing and commercializing innovative therapies for cancer. The company primarily operates through its flagship product, CABOMETYX (cabozantinib), which is used for various cancer indications.
Financial Performance
As of the third quarter of 2024, Exelixis reported the following financial highlights:
| Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Net Product Revenues | $478.1 million | $426.5 million | 12% |
| Total Revenues | $539.5 million | $471.9 million | 14% |
| Research and Development Expenses | $222.6 million | $332.6 million | -33% |
| Selling, General & Administrative Expenses | $111.8 million | $138.1 million | -19% |
| Net Income | $118.0 million | $1.0 million | 11,700% |
| Net Income per Share (Diluted) | $0.40 | $0.00 | N/A |
Product Portfolio
Exelixis has a robust product pipeline, with CABOMETYX being the primary revenue driver. The drug is approved for various oncology indications, including:
- Renal Cell Carcinoma (RCC)
- Hepatocellular Carcinoma (HCC)
- Medullary Thyroid Cancer (MTC)
Research and Development
Exelixis's investment in R&D is significant, with a focus on clinical trials for its pipeline products. The breakdown of R&D expenses for Q3 2024 is as follows:
| Category | Q3 2024 (in thousands) | Q3 2023 (in thousands) |
|---|---|---|
| Clinical Trial Costs | $73,599 | $76,845 |
| Personnel Expenses | $43,105 | $43,786 |
| License and Other Collaboration Costs | $10,000 | $80,013 |
Cash Flow and Liquidity
As of September 30, 2024, Exelixis had cash, cash equivalents, and marketable securities amounting to $1.7 billion. The cash flow from operating activities for the nine months ended September 30, 2024, was $459.7 million, compared to $322.8 million for the same period in 2023.
Stock Repurchase Program
In January 2024, Exelixis's Board of Directors authorized a stock repurchase program of up to $450 million. By June 30, 2024, the company had repurchased 20.3 million shares for a total cost of $450 million. An additional program of $500 million was authorized in August 2024.
Market Position and Collaborations
Exelixis has established collaborations with leading biopharmaceutical companies, including:
- Ipsen
- Takeda
- Genentech
These collaborations enhance Exelixis's ability to commercialize and further develop its products, particularly CABOMETYX.
Outlook
Exelixis anticipates continued growth in net product revenues, driven by the success of CABOMETYX and ongoing clinical trials for additional indications.
How Exelixis, Inc. (EXEL) Makes Money
Revenue Streams
Exelixis generates revenue primarily through the sale of its products, specifically CABOMETYX and COMETRIQ. For the third quarter of 2024, net product revenues were $478.1 million, a 12% increase from $426.5 million in the same quarter of 2023. The nine-month total for 2024 reached $1.294 billion, compared to $1.199 billion for the same period in 2023.
| Revenue Type | Q3 2024 | Q3 2023 | 9M 2024 | 9M 2023 |
|---|---|---|---|---|
| Net Product Revenues | $478.1 million | $426.5 million | $1.294 billion | $1.199 billion |
| CABOMETYX | $475.7 million | $422.2 million | $1.285 billion | $1.187 billion |
| COMETRIQ | $2.4 million | $4.3 million | $8.7 million | $12.3 million |
License and Collaboration Revenues
Exelixis also earns revenue from license agreements and collaborations. In Q3 2024, license revenues amounted to $60.2 million, significantly up from $42.4 million in Q3 2023. Over the nine-month period, license revenues rose to $299.9 million from $133.4 million in the previous year.
| Revenue Type | Q3 2024 | Q3 2023 | 9M 2024 | 9M 2023 |
|---|---|---|---|---|
| License Revenues | $60.2 million | $42.4 million | $299.9 million | $133.4 million |
| Collaboration Services Revenues | $1.2 million | $3.1 million | $7.9 million | $17.6 million |
Product Sales Performance
The growth in CABOMETYX sales can be attributed to its FDA approval for combination therapy with nivolumab, which has expanded its market share. In Q3 2024, sales volume increased by 7% compared to the previous year, alongside a 5% rise in average net selling price.
Cost of Goods Sold and Gross Margin
Exelixis reported a cost of goods sold of $17.3 million for Q3 2024, down from $18.8 million in Q3 2023. The gross margin for the period remained stable at 96%.
Operating Expenses
Operating expenses totaled $403.5 million in Q3 2024, down from $489.5 million in Q3 2023. This includes research and development expenses of $222.6 million, which decreased from $332.6 million year-over-year.
| Expense Type | Q3 2024 | Q3 2023 |
|---|---|---|
| Total Operating Expenses | $403.5 million | $489.5 million |
| Research and Development | $222.6 million | $332.6 million |
| Selling, General and Administrative | $111.8 million | $138.1 million |
Net Income and Earnings Per Share
Exelixis reported a net income of $118.0 million for Q3 2024, translating to earnings of $0.41 per share, compared to a net income of $1.0 million, or $0.00 per share, in Q3 2023.
Cash Position and Future Outlook
As of September 30, 2024, Exelixis held $1.7 billion in cash, cash equivalents, and marketable securities. This liquidity is projected to support operations for at least the next 12 months.
| Financial Metric | As of September 30, 2024 | As of December 31, 2023 |
|---|---|---|
| Cash, Cash Equivalents, and Marketable Securities | $1.7 billion | $1.7 billion |
Exelixis is focused on the continued success of CABOMETYX and expanding its oncology pipeline through collaborations and in-licensing arrangements to drive future revenue growth.
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Article updated on 8 Nov 2024
Resources:
- Exelixis, Inc. (EXEL) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Exelixis, Inc. (EXEL)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Exelixis, Inc. (EXEL)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.