Exelixis tops bottom and topline targets for Q4, stock rises

Exelixis (EXEL) reported Q4 earnings of 37 cents per share and revenue of $228.6 million that beat analysts’ views. Analysts had expected the drug discovery company to earn 24 cents per share on revenue of $189 million. Exelixis stock rose about 5% during the extended trading hours on Tuesday.

The Alameda, California-based biotech company’s GAAP EPS surged to $1.15 from $0.13 reported in the prior year quarter, helped by the increases in net product and collaboration revenues.

For 2019, Exelixis expects R&D expenses to be between $285 million and $315 million. Selling, general and administrative expenses are expected to be between $220 million and $240 million.

“Exelixis achieved strong financial performance in 2018, with solid growth in cabozantinib net product revenue, total revenue, and importantly, earnings per share and cash on hand,” said CEO Michael Morrissey.

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In January 2019, Exelixis announced the FDA approval of cancer drug CABOMETYX for the treatment of patients with a type of liver cancer who have been previously treated with sorafenib drug.

In January 2019, Exelixis’ partner Daiichi Sankyo received approval from the Japanese Ministry of Health, Labour and Welfare for MINNEBRO tablets, which will treat patients with hypertension.

As per the collaboration agreement with Daiichi Sankyo, Exelixis will receive $20 million as a milestone payment upon the first commercial sale of MINNEBRO in Japan. Exelixis is also eligible for additional commercialization milestone payments, as well as low double-digit royalties on sales of MINNEBRO.

Exelixis also announced today that it is initiating the phase 1 clinical development for XL092, a drug to treat patients with advanced solid tumors.

Shares of Exelixis ended Tuesday’s session at $21.68, up 3.34%. The stock had gained 10% since the beginning of 2019.

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