Here’s How Exelixis Is Financially Positioned Now

Revenue trends

Exelixis (EXEL) generated net revenues of $186.1 million in the second quarter of 2018 compared to $99 million in the second quarter of 2017. In the first half of 2018, Exelixis reported revenues of $399.8 million compared to $179.9 million in the first half of 2017.

In the second quarter of 2018, its revenues were $145.8 million compared to $88 million in Q2 2017. Revenues from product sales and collaborations were $40.3 million, which compares to $11 million in Q2 2017.

In the first half of 2018, Exelixis generated revenues of $280.1 million, reflecting ~92% YoY (year-over-year) growth. Revenues from product sales and collaborations were $156.9 million, which compares to $23 million in the first half of 2017.

Wall Street analysts expect Exelixis to generate revenues of $175.8 million in the third quarter.

Here’s How Exelixis Is Financially Positioned Now

Earnings trends

In the second quarter, Exelixis reported net income and diluted EPS of $87.5 million and $0.28, respectively, compared to $17.7 million and $0.06, respectively, in the second quarter of 2017.

In the first half of 2018, Exelixis reported net income and diluted EPS of $203.4 million and $0.65, respectively, compared to $34.4 million and $0.11, respectively, in the first half of 2017.

Wall Street analysts anticipate that Exelixis will report net income and EPS of $58.35 million and $0.18, respectively, in the third quarter.

Expense trends

In the second quarter, Exelixis reported costs of products sold, R&D (research and development), and SG&A (selling, general, and administrative) expenses of $6 million, $42.5 million, and $51.9 million, respectively. That compares to $3 million, $28.2 million, and $40.7 million, respectively, in Q2 2017.

In the first half of 2018, Exelixis reported costs of goods sold, R&D, and SG&A expenses of $11.6 million, $80.2 million, and $105.9 million, respectively. That compares to $6.2 million, $51.4 million, and $75 million, respectively, in the first half of 2017.

The increase in consulting, outside services, and personnel expenses primarily led to the increase in SG&A expenses in the second half of 2018.

Exelixis’s peers in the biopharmaceuticals market include Clovis Oncology (CLVS), Gilead Sciences (GILD), and Incyte (INCY). Their reported revenues for the second quarter of 2018 were $23.76 million, $5.6 billion, and $421.5 million, respectively.