Exelixis (NASDAQ: EXEL)
Q3 2024 Earnings Call
Oct 29, 2024, 5:00 p.m. ET
Overview of Exelixis’ Third Quarter 2024 Performance
- Key Highlights
- Financial Questions and Answers
- Participants in the Call
Key Highlights:
Operator
Good day, everyone, and welcome to Exelixis’ third quarter 2024 financial results conference call. My name is Towanda, and I will be your operator today. This call is being recorded for your convenience. Now, I would like to introduce your host, Mr. Varant Shirvanian, director of investor relations. Please go ahead.
Varant Shirvanian — Director of Investor Relations
Thank you, Towanda, and thank you all for joining us for Exelixis’ third quarter financial results call. I’m joined by Mike Morrissey, our president and CEO; Chris Senner, our chief financial officer; and P.J. Haley, our executive vice president of commercial. Together, we will cover our performance for the third quarter ended September 30, 2024. Amy Peterson, our chief medical officer, and Dana Aftab, our chief scientific officer, will join us for the Q&A session.
During this call, we will reference financial measures not aligned with generally accepted accounting principles (GAAP). You can find a detailed explanation of our use of these non-GAAP measures in our press release on our website. We will also make forward-looking statements regarding the company’s future. These statements will include potential developments in discovery, product development, commercialization, and financial performance. We advise all investors to consider the Risks Factors outlined in our documents filed with the Securities and Exchange Commission, as actual outcomes could differ significantly.
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Exelixis has delivered a strong third quarter across all areas of the business. I’ll begin with a strategic overview to outline our goals for the company, followed by updates from Chris and P.J. Amy and Dana will handle any technical questions during the Q&A.
We are excited about cabozantinib (‘cabo’), which is performing well. We see a positive revenue outlook into 2030 based on current metrics. The introduction of zanzalintinib (‘zanza’) and our collaboration with Merck bring momentum that is invaluable as we aim to lead in oncology treatments. The partnership not only validates zanza but keeps our global commercial rights intact.
Exelixis plans to expand zanza’s development, with multiple pivotal trials underway and a potential launch every year starting in 2026. Our goal is to dominate both genitourinary (GU) and gastrointestinal (GI) oncology. We’re already a strong player in the GU field and are working hard to build our presence in GI as well.
Furthermore, we have three promising compounds in our early-stage pipeline: XL309, XB010, and XL495. With several investigational new drugs (INDs) nearing approval, we aim to prioritize the most promising candidates for development.
In conclusion, the cornerstone of our success lies in delivering clear clinical advantages through ongoing trials and maintaining our upward trajectory in the oncology market.
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Exelixis Reports Strong Q3 2024 Results Amid Promising Future for Cabo and Zanza
Exelixis strives to enhance its Research & Development (R&D) efforts as significant clinical data from zanza and the STELLAR trials emerges.
In 2025, Exelixis is set to showcase extensive results from STELLAR-001 and 002 at major medical conferences. Exciting findings from early clinical trials of zanza are also on the horizon. Further insights into these datasets will be shared as abstracts are approved and titles made available.
With the ANDA litigation largely settled, the company is anticipating a boost in business development activities. Exelixis is concentrating on late-stage clinical assets in the GU (Genitourinary) and GI (Gastrointestinal) oncology areas. The firm believes that distinguishing characteristics in these assets could lead to successful commercial outcomes. Since 2016, most biotech oncology products have struggled in the market, with cabozantinib being one of the rare exceptions that has performed well regarding expansion and revenue.
When evaluating late-stage assets, Exelixis is adopting a selective approach. The company is open to various types of transactions while ensuring that they make deals at appropriate valuations. They are committed to operating the business and conducting R&D at recent expense levels for the foreseeable future.
The firm plans to prioritize funding towards late-stage molecules to enhance clinical and commercial success while advancing the pipeline. They aim to generate free cash flow and return a portion to shareholders. As clinical trials continue, costs for advanced compounds rise, which highlights the importance of careful expenditure management, a practice Exelixis has maintained over the past decade. Recent share buybacks totaling $1 billion, along with a commitment of an additional $500 million through late 2025, reflect Exelixis’ balanced strategy of investing in the pipeline while rewarding shareholders.
In the latest quarter, Exelixis saw impressive financial performance, with notable growth compared to previous years, primarily driven by the strong demand for its cabozantinib product line. The company reported CABOMETYX net product revenues of $475.7 million in Q3 2024, which represents a 9% increase from Q2 2024 and a 12% increase year-over-year. Overall, the cabozantinib franchise generated net product revenues of $478 million, and partnered revenues reached a total of $653 million globally for the same quarter.
Due to these positive results, Exelixis has raised its full-year revenue projections for 2024 and is well-positioned to build on its momentum as the year comes to a close and they prepare for 2025. Looking ahead, the company anticipates strong revenue growth from cabozantinib into the end of the decade, along with zanza generating significant revenue potential beginning in 2026 and continuing into the 2030s.
An encouraging ANDA ruling strengthens cabozantinib’s revenue position through early 2030, although the judgment may still be appealed. The FDA has not approved any ANDA products from MSN in over five years since their submission. Projections indicate cabozantinib could achieve nearly $3 billion in U.S. annual sales by 2030, driven by significant growth prospects in oral net therapies and potential entry into prostate cancer treatments.
As for zanza, it has not received much attention recently but is expected to gain visibility, especially following the positive ruling regarding cabozantinib and an upcoming collaboration with Merck. Zanza aims to leverage cabozantinib’s success with pivotal trials in colon, kidney, head and neck cancers, and neuroendocrine tumors, targeting a patient population of over 100,000 annually.
If all goes well, Exelixis could achieve its first approval for zanza by 2026 and possibly gain additional approvals each year thereafter. Estimates suggest that zanza could generate more than $5 billion in U.S. sales by 2033, divided almost equally between GU and GI indications.
Further trials would enhance this opportunity significantly into the mid-2030s and beyond. Commercial opportunities outside the U.S, either through Exelixis or potential partnerships, could also provide substantial financial benefits.
Before concluding, Exelixis remains committed to a robust pipeline that supports both cabozantinib and zanza. The company is excited about the variety of early-stage applications and awaits further data that assesses their clinical potential while striving to push forward successfully as a multi-franchise oncology company.
For detailed financial results from Q3 2024 and highlights of key milestones, please refer to our press release issued earlier today.
Next, I will hand the call over to Christopher Senner, Executive Vice President and Chief Financial Officer.
Christopher J. Senner — Executive Vice President, Chief Financial Officer
Thank you, Mike. In the third quarter of 2024, Exelixis reported total revenues of approximately $539.5 million, with cabozantinib franchise net product revenues reaching $478.1 million, including $475.7 million from CABOMETYX and $6.6 million attributed to clinical trial sales, consistent with Q2 2024 performance. The gross-to-net for the cabozantinib franchise in the third quarter stood strong.
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Exelixis Reports Third Quarter 2024 Financial Results and Enhances Future Guidance
The financial landscape for Exelixis in the third quarter of 2024 showed some significant changes, particularly in gross-to-net deductions which fell to 26%. This is a decrease from the second quarter of 2024. The drop is mainly attributed to reductions in Medicare Part D expenses as well as DoD and TRICARE costs. Looking ahead, the company anticipates gross-to-net deductions for the full fiscal year 2024 to range between 28% and 29%. Inventory levels for CABOMETYX remained stable at 2.1 weeks on hand, consistent with levels from the prior quarter. It’s important to note that sales from clinical trials can vary from quarter to quarter, and this trend is expected to persist.
In total, the third quarter generated $60.2 million in revenues from licenses, with the largest portion—$42 million—coming from royalties earned through Ipsen and Takeda on their cabozantinib sales. Approximately $11 million was recognized in license revenue due to a regulatory milestone reached when Ipsen filed an application with the European Medicines Agency. Total operating expenses for the quarter amounted to around $352 million, down from $361 million in the previous quarter. This decrease stemmed from reduced general and administrative expenses, although increased costs for clinical trials and licensing were noted. Following an evaluation of facility needs at their Alameda campus, the company has listed some unoccupied lease spaces for sublease, resulting in a noncash impairment charge of approximately $52 million. The provision for income taxes was about $37 million, a decrease from $67 million in the prior quarter.
Exelixis reported a GAAP net income of approximately $118 million, equating to $0.40 per fully diluted share, alongside a non-GAAP net income of approximately $136 million or $0.47 per diluted share. The non-GAAP figure excludes about $18 million related to stock-based compensation expenses after tax effects. As of September 30, 2024, the company holds approximately $1.7 billion in cash and marketable securities.
During this quarter, Exelixis repurchased about $12 million of its shares at an average price of $25.61 as part of a $500 million share repurchase program authorized in August 2024. Looking forward, the company is adjusting its financial expectations for the full year 2024, increasing the guidance for total revenue to a range of $2.15 billion to $2.2 billion. The net product revenue forecast is also boosted to between $1.775 billion and $1.825 billion, raising the midpoint by $100 million from prior estimates. As the year progresses, the guidance ranges for R&D and SG&A expenses are being tightened. Additional details can be found on Slide 20 of the Q3 earnings presentation. Now, I will pass the call to P.J.
PJ Haley — Executive Vice President of Commercial
Thank you, Chris. The third quarter of 2024 proved to be robust as our team maintained high performance, solidifying CABOMETYX’s status as the most prescribed tyrosine kinase inhibitor (TKI) for renal cell carcinoma (RCC). Notably, CABOMETYX continues as the leading TKI plus immuno-oncology (IO) combination for first-line RCC treatment. In Q3 2024, CABOMETYX total prescription volume grew by 9% year-over-year compared to Q3 2023, while the overall TKI market saw a 1% decline in volume. Demand and new patient starts for CABOMETYX reached all-time highs this quarter.
From a competitive standpoint, CABOMETYX maintained strong marketplace performance, achieving a TRx market share of 42% among TKIs. The first-line RCC market remains highly competitive, marking the eighth consecutive quarter with CABOMETYX plus nivolumab as the top prescribed TKI plus IO combination. The community oncology segment continues to show robust growth. Looking ahead, our commercial team is optimistic about the promising results from the CABINET study concerning neuroendocrine tumors (NETs), as we aim to strengthen our position in this market. Given the success in the RCC sphere, we anticipate similar opportunities for growth in NETs.
The global RCC market expanded significantly from around $3.7 billion in 2016 to approximately $10 billion in 2023 due to new treatments and improved patient outcomes. Similarly, early forecasts suggest that the NET market could nearly double from approximately $2.5 billion in 2023 to about $4.6 billion by 2030. Based on findings from the CABINET study, CABOMETYX is poised to capture a substantial share of the NET market, pending necessary regulatory approvals. Beyond CABOMETYX, the STELLAR-311 study positions another treatment, zanidatamab, favorably in the NET space.
The CABINET data, which were well-received during the September ESMO meeting and published in the New England Journal of Medicine, are gaining positive feedback from clinicians who see high value in the data regarding progression-free survival, overall response, and disease control rates. Many physicians have experience using CABOMETYX for RCC, hepatocellular carcinoma (HCC), or differentiated thyroid cancer (DTC), which enhances their comfort level with dosage adjustments and toxicity management. Our research indicates that an approval for CABOMETYX based on CABINET results could address significant unmet needs in the NET patient community.
The CABINET study included a diverse patient population, encompassing various disease origins, tumor grades, and histories of prior treatments. Feedback from physicians highlights the study’s comprehensive design and the contemporary nature of its data, which includes patients who have received previous treatments like Lutathera. The prospective utility of CABOMETYX in NETs positions it uniquely compared to other approved treatments, making it an appealing option for many oncologists. In analyzing the NET prescriber landscape, we see considerable potential, particularly as around 80% of targeted prescribers already have experience using CABOMETYX. Of the 3,500 NET prescribers identified, 2,800 are current targets for our sales force, indicating a streamlined approach to accessing this market.
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Exelixis Strongly Positioned for Growth in Neuroendocrine Tumor Treatments
The latest developments at Exelixis point to a robust opportunity within the neuroendocrine tumor (NET) market. With 550 prescribers already aligned with CABOMETYX targets, the company is set to efficiently expand its reach following intense research efforts.
Market Potential and Research Insights
Recent market research indicates that oral therapies comprise about 25% of the first-line treatment market and 50% in higher lines of therapy. Current oral treatments lack comprehensive data across various disease characteristics, which creates a significant gap in the market. Furthermore, many physicians view the existing toxicity profiles unfavorably. Most NET patients undergo multiple lines of therapy, but optimal sequencing data is limited, particularly for those previously treated with Lutathera. This situation emphasizes the need for thorough data to better meet the diverse needs of this patient group.
Financial and Competitive Landscape
By 2025, the small molecule market for NETs in the U.S. is projected to reach approximately $1 billion. CABOMETYX is set to become the only branded small molecule therapy in this space, giving it a unique promotional edge and a backing of comprehensive patient support services. With favorable CABINET trial data and an effective launch strategy, Exelixis aims to leverage its positive relationships with prescribers to quickly establish itself in this market. The company’s experience in the renal cell carcinoma (RCC) market, which expanded by nearly 40% since 2021, showcases its potential for growth.
Positive Moves in Research and Development
Looking ahead, Exelixis is enthusiastic about the announced Phase 3 zanza trials, aiming to broaden its small molecule portfolio and tackle a variety of tumors, including colorectal and head and neck cancers. The successful trajectory of the CABOMETYX franchise positions Exelixis to help more cancer patients while strengthening both its GU and GI areas.
A Word from Leadership
Michael M. Morrissey — President, Chief Executive Officer, and Director
In conclusion, Morrissey commended the talented team at Exelixis for their dedication to helping cancer patients. He noted the importance of collaboration, especially with the Merck partnership in clinical development, which is set to enhance the reach of zanza therapies. Thanks to the collective efforts across departments, the company has made significant strides already in 2024, and is eager to share further updates on their progress.
Questions & Answers:
Operator
Thank you. [Operator instructions] Please stand by while we compile the Q&A roster. Our first question comes from Asthika Goonewardene with Truist. Your line is open.
Asthika Goonewardene — Analyst
Hi, guys. Thanks for taking my questions and congrats on your recent achievements. I’m particularly interested in the Merck collaboration. Can you provide insight into the diligence process that led to this deal?
Michael M. Morrissey — President, Chief Executive Officer, and Director
Thanks for the question, Asthika. It’s difficult to quantify the diligence process without speaking for Merck, but we are excited to collaborate with them on zanza. Their expertise in executing trials will be invaluable as we progress with our pivotal trials together.
Operator
Thank you. Please hold for the next question from Jason Gerberry with Bank of America Securities. Your line is open.
Unknown Speaker — Bank of America Securities — Analyst
Hi. This is Chi on for Jason. Thanks for your insights and congratulations on the favorable ruling regarding CABOMETYX. Regarding business development, do you have a preference for modalities like small molecules or monoclonal antibodies?
Michael M. Morrissey — President, Chief Executive Officer, and Director
Thank you for your question. We remain open-minded regarding modalities. Our focus is on active molecules with the potential for meaningful clinical data that can differentiate our offerings in the market.
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Exelixis Focuses on Growth and Innovation in Oncology Drug Development
A Streamlined Approach to Clinical Success
Exelixis is strategically positioning itself in the GU/GI therapeutic space, capitalizing on its strengths in clinical execution and commercial viability. The company expresses its commitment to finding active molecules to establish a robust franchise that not only complies with regulatory standards but also enhances patient care and drives financial performance.
New Developments and Insights from Analysts
Silvan Tuerkcan, an analyst from Citizens JMP, acknowledges the company’s current successes with cabo and zanza, but raises questions regarding Exelixis’ earlier pipeline, specifically its synthetic lethality assets. The inquiry includes expectations for upcoming data and perspectives on the competitive landscape surrounding these treatments.
Strategic Competitiveness in Synthetic Lethality
Dana Aftab, the Chief Scientific Officer, provides insights into the company’s innovative compounds. Exelixis has two compounds in the synthetic lethality domain: XL309 and XL495. XL309 is reportedly leading in the clinical stage, bolstered by Roche’s decision to pause its competing drug due to pharmacokinetic challenges, thus enhancing Exelixis’ position in this area. XL495, meanwhile, presents competitive advantages in terms of efficacy and safety profiles compared to existing treatments.
Pipelines Focused on Advancing Cancer Treatment
Amy Peterson, the Chief Medical Officer, emphasizes the dedication to development in the oncology sector, referring to strategies that extend treatments beyond BRCA mutations. She notes ongoing advancements with XB010 ADC, highlighting the wide-reaching implications for cancer therapy derived from their innovative approach. All teams are committed to progressing their pipeline alongside existing successful products like zanza and cabo.
Strong Sales Performance in Key Products
Michael Schmidt from Guggenheim Securities applauds the doubling growth rate of cabo sales in the latter half of the year and asks about the driving factors. PJ Haley, Executive Vice President of Commercial, attributes this success to a strong demand and new patient starts, particularly in first-line RCC, where Exelixis continues to lead in market share. Enhanced data and a dedicated team have contributed significantly to this ongoing momentum.
Future Collaborations and Market Positioning
Regarding zanza’s collaboration with Merck, Michael Morrissey, President and CEO, acknowledges that specifics of the Phase 3 studies will be shared later. He expresses enthusiasm for the partnership, praising Merck’s established presence in the HIF inhibitor space. As both companies progress, there is optimism about leveraging this collaboration for improved market positioning.
Strategic Vision Amidst Growth
Greg Renza from RBC Capital Markets explores Exelixis’ future pipeline construction, citing lessons learned through the development of cabo. Michael Morrissey responds affirmatively, emphasizing a balanced approach that cultivates diversity within the product portfolio while ensuring a focused strategy to maintain competitive advantages across therapeutic areas.
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Exelixis Optimistic About Future Growth with Zanza and Cabo
Building on Previous Successes
Exelixis is focused on expanding opportunities around its molecule, Cabo, and views Zanza as a pivotal addition to its portfolio. With over 15 years of development experience, the company has garnered insights that will help shape its approach to Zanza. They’ve experienced several successes in their lab and clinical settings, allowing them to effectively maneuver within the industry.
Regarding commercial assumptions, Exelixis has a professional modeling team dedicated to analyzing various opportunities. Plans are in place to disclose relevant data, but the company encourages analysts to conduct their own assessments as well. With Zanza positioned in six ongoing or planned pivotal trials, momentum continues to build.
Furthermore, Exelixis anticipates collaboration with Merck, featuring key data from trial 303 expected in 2025, with a possible launch in 2026. The company is eager to move away from previous challenges and focus on future business growth.
Operator
Thank you. Please hold for our next question. Yaron Werber from TD Cowen, you are on the line.
Yaron Werber — Analyst
Thanks for the update, and congratulations on the quarter and recent litigation victories. Michael, your mention of potential late-stage deals was intriguing. Could you elaborate on this and clarify if you are open to acquisitions, or is the focus solely on in-licensing? Thank you.
Michael M. Morrissey — President, Chief Executive Officer, and Director
Yaron, I appreciate the question. We’ve discussed late-stage opportunities before, and as mentioned by my colleagues, we have a robust early-stage pipeline. We believe in the potential of these molecules; however, we don’t require additional development candidates at this time, as our internal pipeline is substantial. Our objective remains to grow Exelixis into a multi-product oncology enterprise.
If the right asset presents itself—one that shows promise for strong clinical data and commercial performance—we are keen to explore options for integration. Various business development opportunities are on the table, but any prospective deal must meet our criteria for asset quality and fair valuation.
Operator
Thank you. Next, we have a question from Jay Olson with Oppenheimer. Your line is open.
Jay Olson — Analyst
Impressive progress from Exelixis! The potential of Zanza, particularly the $5 billion estimated peak sales in the U.S., is notable. What gives you this confidence in Zanza’s market potential? Is it tied to your collaboration with Merck, or are there other factors? Additionally, considering your global rights to Zanza, why focus on U.S. revenue projections, especially regarding the international market?
Michael M. Morrissey — President, Chief Executive Officer, and Director
Jay, thank you for your insightful questions. We are currently at a critical turning point as we move beyond the ANDA situation, allowing us to concentrate on successful operations with Cabo and Zanza, both showing significant promise. Our focus is not just on immediate revenues but also on expanding the reach of Cabo’s success through Zanza.
Rallying all stakeholders to recognize our current momentum is essential as we establish ourselves as a multi-franchise business, underscoring our commitment to long-term shareholder and patient value. The options for future business development are plentiful, and we are optimistic about our path ahead.
Operator
Thank you. Please stand by for our next question. Andy Hsieh from William Blair, your line is now open.
Andy Hsieh — Analyst
Thanks for the opportunity to ask questions. It’s promising to see Cabo’s continued success. I have two questions. One for P.J. Can you share insights about the imaging agent for CA-9 in renal cell carcinoma (RCC) that may receive approval next year? How might this help diagnose more patients? Also, about the $1 billion total addressable market (TAM) for the small molecule neuroendocrine tumor (NET), could you explain the projected duration mentioned and how it compares to existing treatments?
PJ Haley — Executive Vice President of Commercial
Andy, thank you for your questions. In regards to RCC, our TRx market share has grown to 42%, which indicates solid performance. We anticipate the imaging agent will help identify patients who might have gone undiagnosed, enhancing patient treatment capabilities.
On the NET front, our projections suggest a five- to six-month treatment duration. Given the landscape and the nature of NET being more indolent, the assumption might be overly conservative. Should Zanza be integrated successfully in earlier treatment stages, increased duration is possible.
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Targeting Neuroendocrine Tumors: Insights into Upcoming Launches
Overview of Current Market Trends
In first-line treatments for neuroendocrine tumors (NET), an estimated 25% of patients are using oral therapies. This figure increases to around 50% for patients in second and third-line treatment settings. Company research indicates that as treatment begins earlier, patients tend to stay on therapy longer, especially with the slower progression characteristic of neuroendocrine tumors.
There’s potential for the drug Zanza, pending trial results and regulatory approval, to be utilized earlier, thus increasing the duration of therapy benefits. Looking at the near future, the company is enthusiastic about its other treatment, Cabo, which has a PDUFA date set for April 3. The company is optimistic about penetrating the projected $1 billion market by 2025 quickly and effectively. Being the only branded oral therapy available gives them a unique advantage and strong promotional leverage.
Launch Preparation and Market Positioning
In response to a query about the launch of Cabo for neuroendocrine tumors, the Executive Vice President of Commercial, PJ Haley, affirmed that the team is ready for a successful launch. The competitive landscape is less intense than in renal cell carcinoma (RCC), which provides a promising opportunity for immediate uptake once the drug is launched. The company’s sales force has been expanded to ensure efficient market entry, with a strong belief that they can significantly impact patients with neuroendocrine tumors.
Potential for Collaborative Research and Development
As the conversation shifted to partnerships, the topic of potential expansion in collaboration with Merck arose. The Chief Medical Officer, Amy Peterson, expressed an interest in developing Zanza across multiple indications, especially in relation to existing oral therapies. Collaborations with other immuno-oncology agents are considered to further Zanza’s reach. However, the effects of these partnerships in the PD-1 refractory space will require additional data to fully understand their competitive positioning.
Transitioning to Phase 3 Trials
Following questions about clinical trials, it was mentioned that STELLAR-305 is still recognized as a Phase 2/3 study. The Chief Medical Officer confirmed that the formal evaluation of Phase 2 data will dictate any shifts to Phase 3 and assured that results would be shared once mature data is available.
Capital Management and Future Growth
Finally, a question regarding capital allocation priorities surfaced, primarily focusing on the company’s buyback program. The CEO, Michael M. Morrissey, highlighted the company’s strategy of maintaining disciplined spending, while also continuing to invest in their pipeline and return capital to shareholders. With robust cash flows projected, he is confident that they can balance these priorities effectively.
Conclusion
The path forward appears promising for the development of Cabo and Zanza in the neuroendocrine tumor market, with an anticipated strong launch and sound financial strategy guiding future growth.
Exelixis CEO Discusses Financial Outlook and Clinical Developments
Expectations for Zanza and Cabo
During a recent earnings call, Michael M. Morrissey, President and CEO of Exelixis, clarified expectations for the drug Zanza, stating that by 2033, the projected revenue could reach $5 billion. In contrast, the company anticipates that Cabo, an established product, will likely decline to minimal sales as it faces a loss of exclusivity (LOE) in the 2030 timeframe. Morrissey emphasized that Zanza is expected to show significant growth as upcoming clinical trials yield results.
Real-World Assessment of Colorectal Cancer Patients
Lukas Shumway, an analyst, raised a question regarding the identification of colorectal cancer patients without liver events ahead of the 2024 update on Zanza. Amy Peterson, Chief Medical Officer, responded by underscoring the importance of imaging assessments. She noted that patients diagnosed with advanced colorectal cancer typically undergo comprehensive scans, including liver imaging, making it straightforward to detect liver disease.
Exploring Clinical Programs for Cabo and Zanza
Sudan Loganathan from Stephens sought insights on Exelixis’ future asset acquisitions in the GU and GI therapeutic areas. Morrissey responded that the company is open to exploring a variety of options, whether they involve novel combinations with existing products or standalone agents. His main focus revolves around clinical differentiation that would ultimately drive commercial success.
Strategic Staffing Plans Moving Forward
With regards to operational expansion, Chris Shibutani inquired about future staffing strategies. Morrissey expressed confidence in the current team of over 100 employees and highlighted the organization’s momentum in R&D and commercial sectors. He stated that as clinical success continues, they would incrementally expand their commercial efforts.
Insights on the PK MIT Program
Lastly, Joe Catanzaro from Piper Sandler posed a question about the PK MIT program, which is currently in its Phase 1 trials. Dana Aftab, Chief Scientific Officer, explained that the program focuses on a biomarker-selected population for endometrial and ovarian cancer. Aftab noted that while specific biomarkers have been identified in preclinical models, additional promising biomarkers have yet to be disclosed. The team is actively exploring various hypotheses for future research.
Closing Remarks
As the call wrapped up, Varant Shirvanian, Director of Investor Relations, thanked participants and encouraged further questions. Overall, the company expressed a positive outlook driven by ongoing clinical developments and strategic growth plans.
This article is a transcript of a conference call produced for The Motley Fool. While efforts are made to ensure accuracy, we recommend conducting your own research.
The views expressed are those of the author and do not necessarily reflect those of Nasdaq, Inc.