Exelixis Grows Cabometyx Sales, Cuts Tax-Rate Outlook as Zanzalintinib Decision Nears

Exelixis reported higher third-quarter sales of its cancer drug Cabometyx on Thursday and cut its expected 2026 tax rate, while keeping its revenue outlook unchanged as it awaits a U.S. decision on its next potential franchise drug, zanzalintinib, according to the earnings release it filed with an 8-K after the market close.

Total revenue rose to $658.7 million from $597.8 million a year earlier. U.S. net product revenue from the cabozantinib franchise climbed to $604.9 million from $542.9 million, which the company attributed primarily to higher sales volume and a higher average net selling price.

Earnings rise on a lower share count

GAAP net income increased to $218.1 million, or 85 cents a diluted share, from $193.6 million, or 69 cents. Exelixis said per-share results benefited from fewer weighted-average shares outstanding as a result of its stock repurchase programs. Non-GAAP diluted EPS rose to 94 cents from 78 cents.

Cabometyx accounted for $603.2 million of the quarter's net product revenue, and Cometriq added $1.8 million. Collaboration revenue slipped to $53.8 million from $54.8 million on lower milestone revenue and development cost reimbursements, partly offset by higher royalties from partner Ipsen. Royalty revenue from partners Ipsen and Takeda totaled $51.8 million.

Research and development expenses rose to $209.5 million from $199.2 million, and selling, general and administrative expenses increased to $154.6 million from $123.7 million on higher personnel, marketing, and legal and advisory costs.

Guidance mostly unchanged

Exelixis kept its 2026 forecasts for total revenue of $2.500 billion to $2.550 billion and net product revenue of $2.300 billion to $2.350 billion. It lowered its expected effective tax rate to 16% to 18% from 21% to 23%, and narrowed its cost of goods sold estimate to about 4% of net product revenue from 3.5% to 4.5%.

The company said its revenue guidance does not include any sales from a potential U.S. approval and launch of zanzalintinib in previously treated metastatic colorectal cancer.

Zanzalintinib timeline

The FDA is reviewing Exelixis' application for zanzalintinib in combination with atezolizumab for patients with previously treated metastatic colorectal cancer. In September, the agency extended its review by three months after the company submitted updated data in response to an FDA information request, setting a new target action date of March 3, 2027.

"The zanzalintinib development program gained further momentum as the organization focused on trial initiations, enrollment progress for ongoing studies and in-depth planning for the next wave of new pivotal trials," President and CEO Michael M. Morrissey said in the release.

Exelixis also said Thursday that it expects topline results from the phase 3 STELLAR-304 trial, which tests zanzalintinib with nivolumab in a form of kidney cancer, in the first quarter of 2027.

Buybacks continue

Under a $750 million repurchase authorization approved in May 2026, Exelixis had bought back $402.1 million of stock through the end of the third quarter at an average price of $54.03 a share. Since its first buyback program in March 2023, the company has repurchased a total of $3.2 billion of stock, retiring 97.8 million shares at an average price of $32.25.

Exelixis scheduled a conference call for 5 p.m. ET on Thursday.

Sources

1. Exelixis Form 8-K with third-quarter 2026 earnings release (Exhibit 99.1), filed Oct. 29, 2026 (accession 0000939767-26-000114)

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