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Exelixis' Q1 Loss Widens 67% on Higher Trial and Personnel Costs

A lot of hope is resting on Exelixis' (NASDAQ: EXEL  ) Cometriq as a possible treatment for metastatic castration-resistant prostate cancer; but tonight was all about the company's first-quarter earnings results.

For the quarter, the cancer-focused drug developer reported total revenue of $4.9 million consisting entirely of Cometriq product sales. Currently, Cometriq is only approved to treat metastatic medullary thyroid cancer. Comparably, revenue dipped by close to 50% from the prior-year period, but that was primarily due to the recognition of $7.8 million in licensing and contract revenue, which was missing in Q1 of this year. Cometriq sales totaled just $1.9 million in the year-ago period.

Research and development costs for the quarter soared 68%, to $54.8 million, as costs related to its clinical trials, as well as the need for personnel to run four phase 3 clinical studies, have increased. Exelixis notes the wind down of other studies partially offset this rise in R&D expenses.

Selling, general, and administrative costs rose by 40%, to $14.7 million, with an increase in personnel accounting for about half of the rise. The remainder of the increase related to marketing expenses for Cometriq, as well as stock-based compensation.

The end result of these higher costs was that net loss for the quarter ballooned 67%, to $74.6 million, or $0.39 per share, compared to a narrower loss of $0.24 per share in Q1 2013. Exelixis also announced that it ended the quarter with $407.7 million in cash and cash equivalents compared to $415.9 million in the sequential fourth quarter. Keep in mind its cash total includes proceeds from a 10 million share offering in January that raised approximately $75.6 million.

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  • Report this Comment On May 02, 2014, at 12:41 AM, EvanBuck wrote:

    So...long-term prognosis still looks good to me, despite these short term bumps in the road. These results look ugly, but the main takeaway for me is the increase in sales from Cometriq. The stock has some catalysts waiting to happen and I don't think Exelixis is fairly valued by the market. What do you think Sean?

  • Report this Comment On May 02, 2014, at 2:51 AM, TMFUltraLong wrote:


    I'm a shareholder and sticking this one out... I figure the MTC indication is going to take a few years to really get ramped up anywhere near $100M in annual sales so it's really all about COMET-1. I continue to like the risk/reward here as I stated when I first bought a few weeks ago and expect an eventual approval in mCRPC.

    But, that's just one man's opinion...


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Sean Williams

A Fool since 2010, and a graduate from UC San Diego with a B.A. in Economics, Sean specializes in the healthcare sector and in investment planning topics. You'll usually find him writing about Obamacare, marijuana, developing drugs, diagnostics, and medical devices, Social Security, taxes, or any number of other macroeconomic issues.

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8/28/2015 4:00 PM
EXEL $6.05 Down -0.04 -0.66%
Exelixis CAPS Rating: ****