[Management View]
Exelixis reported total revenues of $568 million, driven by the cabozantinib franchise and collaboration revenue. The CABOMETYX net product revenues reached $518 million, with significant contributions from the neuroendocrine tumor (NET) launch. Management emphasized the strategic priority of expanding the cabozantinib franchise and advancing the zanzalutinib pipeline.

[Outlook]
Exelixis reiterated its full-year 2025 financial guidance, with expectations to update as NET launch data and additional revenue opportunities emerge. The company plans to file regulatory submissions for zanzalutinib based on positive STELLAR-303 results and is exploring new indications for the drug.

[Financial Performance]
The cabozantinib franchise saw a 19% year-over-year growth, reaching $520 million. Operating expenses decreased to $355 million from $369 million in the previous quarter. GAAP net income was $184.8 million, or $0.68 per basic share, while non-GAAP net income was $212.6 million, or $0.78 per basic share.

[Q&A Highlights]
Question 1: Any particular takeaways from head and neck that can be extrapolated to future studies?
Answer: Zanzalutinib is a franchise molecule with multiple areas for development. Rigorous drug development requires continuous assessments, and data will be shared at a future point.

Question 2: How enduring do you think market share gains can be for CABOMETYX, and can you achieve similar market share in NET as in RCC?
Answer: CABOMETYX has shown consistent growth in market share and revenue in RCC. The NET launch is promising, with 35% market share in the second line plus oral market. The team is confident in continuing to drive growth in both RCC and NET.

Question 3: How do you think ZANZA may be positioned in the broader colorectal cancer landscape relative to other new treatment options?
Answer: The OS benefit in colorectal cancer is significant, and Zanzalutinib could be the only other potential doublet available to patients if approved. The NLM subgroup data will be followed as per the statistical design.

Question 4: Is the ITT data from STELLAR-303 clinically meaningful, and are there plans to advance ZANZA in combinations in early lines in CRC?
Answer: The OS benefit is unequivocal and statistically significant. There are plans to evaluate Zanzalutinib in the adjuvant setting for patients with high risk of recurrence.

Question 5: Can you comment on the pricing dynamics with cabozantinib, especially with respect to 340B volume and reimbursement?
Answer: The increase in 340B volume impacts gross to net deductions. The company projects gross to net will come in closer to 30%.

Question 6: How should we think about the revenue trajectory for NET post-second quarter?
Answer: The company does not provide quarter-to-quarter guidance but is excited about the strong start in NET. Prescriptions are seen broadly across academic and community settings.

Question 7: Does the dual endpoint in STELLAR-303 give the opportunity to get approval for one patient population if there are nuances with either the NLM or liver mets population?
Answer: The dual primary endpoint is designed such that a positive result on one endpoint suffices for approval.

Question 8: Can you discuss the breadth of prescribing among target physicians for NET?
Answer: Prescriptions are seen broadly among cabo-naive and legacy cabo prescribers, both in academic and community settings.

[Sentiment Analysis]
Analysts and management expressed optimism about the growth prospects of CABOMETYX and zanzalutinib. The tone was positive, with confidence in the strategic direction and potential of the pipeline.

[Quarterly Comparison]
| Metric | Q2 2025 | Q1 2025 | Q2 2024 |
|-------------------------------|---------------|---------------|---------------|
| Total Revenues | $568 million | $520 million | $438 million |
| CABOMETYX Net Product Revenues| $518 million | $508 million | $438 million |
| Operating Expenses | $355 million | $369 million | N/A |
| GAAP Net Income | $184.8 million| $184.8 million| N/A |
| Non-GAAP Net Income | $212.6 million| $212.6 million| N/A |

[Risks and Concerns]
Risks include market competition, regulatory review and approval processes, and compliance with applicable regulatory requirements. The impact of increased 340B volume on gross to net deductions is also a concern.

[Final Takeaway]
Exelixis demonstrated strong performance in Q2 2025, driven by the cabozantinib franchise and the successful launch of CABOMETYX in neuroendocrine tumors. The company is focused on expanding its oncology pipeline with zanzalutinib, showing promising results in colorectal cancer. Management remains confident in achieving growth targets and navigating market dynamics, with a strategic emphasis on high-value indications and rigorous capital allocation.