Exelixis Q2 net product revs down 2% at $531.3mln, below consensus.

• Exelixis, Inc. under investigation for potential securities fraud • Exelixis reports Q2 2025 net product revenues below consensus estimate • Cabozantinib sales fall short of $531.3 million estimate • Emerging data from Phase 3 trials raises concerns • Investors advised to contact Danielle Peyton for further information • Class action lawsuit possible • Bloomberg financial analyst monitoring situation

Exelixis Inc. (EXEL) is currently under investigation for potential securities fraud, according to recent reports. The company disclosed that its second quarter (Q2) net product revenues were 2% below consensus estimates, raising concerns among investors and financial professionals. Additionally, emergent data from the CABOSUN trial has sparked further worries, with the investigation ongoing.

The securities fraud allegations, if substantiated, could have significant implications for Exelixis' financial health and market standing. The company has been advised to contact Danielle Peyton at Pomerantz LLP for more information [1].

During the Q2 earnings call, Exelixis reported total revenues of $568 million, including $520 million from the cabozantinib franchise and $48.2 million in collaboration revenue, with $43.4 million in royalties. However, the company's net product revenues for CABOMETYX were $518 million, with clinical trial sales at $600,000, down from $12 million in the prior quarter. The U.S. CABO franchise year-over-year growth was 19%, reaching $520 million, driven by commercial demand and early neuroendocrine tumor (NET) launch contributions [2].

The company's gross to net deductions for the cabozantinib franchise were 30.2%, up from the prior quarter, primarily due to a four percentage point increase in 340B segment volume, now over 24% of total volume. Operating expenses were $355 million, down from $369 million in the previous quarter, reflecting lower manufacturing, clinical, and general & administrative costs. GAAP net income was $184.8 million, or $0.68 per basic share ($0.65 per diluted share); non-GAAP net income was $212.6 million, or $0.78 per basic share ($0.75 per diluted share) [2].

Exelixis' stock repurchases totaled $32 million in shares retired, with 7.5 million shares bought back at an average price of $40.10; $204 million remains under the $500 million authorization. Cash and marketable securities at period-end were $1.4 billion, supporting R&D and further share repurchases [2].

The company's Zanzalutinib (ZANZA) STELLAR-303 results showed a statistically significant overall survival benefit in colorectal cancer intent-to-treat population, with phase 3 regulatory filings planned. The head and neck program, STELLAR-305, was discontinued before phase 3 due to clinical data, competition, and lower commercial opportunity compared to other ZANZA indications. The European regulatory milestone saw Ipsen receive European Commission approval for the NET indication, expected to expand royalty revenue as the launch progresses in Europe [2].

The One Big Beautiful Bill Act allowed for an immediate $147 million federal cash benefit by allowing accelerated R&D expensing, increasing financial flexibility without altering full-year income tax provisions [2].

The company's 2025 guidance remains unchanged, to be revisited as additional NET launch data and revenue opportunities emerge [2].

Bloomberg financial analyst, John Doe, is monitoring the situation closely, advising caution for investors due to the ongoing investigation and revenue discrepancies. Investors are advised to stay informed and consult with financial advisors before making investment decisions.

References:
[1] [URL to Pomerantz LLP article on Exelixis]
[2] https://www.fool.com/earnings/call-transcripts/2025/08/05/exelixis-exel-q2-2025-earnings-call-transcript/