The following is a summary of the Exelixis, Inc. (EXEL) Q3 2024 Earnings Call Transcript:

Financial Performance:

• Exelixis reported strong financial performance in Q3 2024 with year-over-year growth driven primarily by the cabozantinib franchise.

• Cabo franchise net product revenues were $478.1 million in Q3 2024, a 12% increase year-over-year.

• Exelixis increased 2024 full year net product revenue guidance based on robust Q3 performance.

• GAAP net income was approximately $118 million for Q3 2024, with an earnings per share of $0.40 on a fully diluted basis.

Business Progress:

• Exelixis has maintained a focus on expanding its oncology business, particularly through the development of cabozantinib and zanzalintinib.

• The positive Cabo ANDA ruling and collaboration announcement with Merck for Zanza's development are expected to significantly contribute to mid and long-term growth.

• Development plans for Zanza include six ongoing and planned pivotal trials, projecting one planned launch per year beginning as early as 2026.

Opportunities:

• Exelixis is set to continue leveraging the strength of the cabozantinib franchise, with projected revenue growth through to 2030.

• The collaboration with Merck for Zanza strengthens its position in kidney and head and neck cancers, showing strong potential for future growth.

• With the cabozantinib franchise positioned as a leader in RCC, further expansion into the neuroendocrine tumors space is viewed as a significant opportunity pending regulatory approval.

Risks:

• The FDA has not granted tentative approval meaning there might be delays or reconsiderations impacting product deployment schedules.

• Economic fluctuations and market demand variations remain ongoing risks for Exelixis, impacting overall financial and commercial stability.

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