Exelixis surpasses Q2 earnings estimate by 6 cents

Exelixis Inc. (NASDAQ: EXEL) reported second-quarter earnings of 29 cents per share, down 6.4% year-over-year. The bottom line surpassed the average analysts’ expectation of 23 cents per share.

Revenues of $240.3 million were up 29% compared to the same period last year and higher than the street view of $227 million. CABOMETYX net product revenues totaled $193.7 million, 32% higher than last year.

EXEL shares gained 0.23% during after-market trading on Wednesday. The stock has gained 7.5% so far this year.

Research and development expenses for the quarter were $81.9 million, compared to $42.5 million for the comparable period in 2018, primarily due to increases in clinical trial costs.

CEO Michael Morrissey said, “We achieved notable revenue growth for the CABOMETYX franchise, supporting our strategy of reinvestment in long-term growth opportunities through our internal discovery and targeted in-licensing activities, including today’s announcement of our partnership agreement with Aurigene.”

READ: Vertex Pharmaceuticals Q2 profit jumps 29%, beats estimates

For full-year 2019, cost of goods sold is expected to be between 4% and 5% of net product revenues, the company said. Research and development expenses are now expected to be between $330 million and $350 million given the impact of the recent business development activities.

Guidance for the effective tax rate in 2019 is between 21% and 23%.

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