Exelixis Inc at Morgan Stanley Global Healthcare Conference Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Sean Laaman - Morgan Stanley & Co Ltd - Analyst : Wonderful. Thank you, Mike. Just before we get into the detail around the company, I've got some macro questions here that we're asking all our companies. So the first one is with China's rising biotech innovation, how are you thinking about Exelixis' competitive position here? And will it influence your R&D and business development?

Question: Sean Laaman - Morgan Stanley & Co Ltd - Analyst : Thank you, Mike. And on to AI. So are you currently leveraging AI? How do you think about AI's disruptive potential?

Question: Sean Laaman - Morgan Stanley & Co Ltd - Analyst : Wonderful, Mike. And on the regulatory side, what's been the most impactful for Exelixis? Has it been FDA? Has it been (multiple speakers)

Question: Sean Laaman - Morgan Stanley & Co Ltd - Analyst : For sure, for sure. More to Exelixis specific and just starting with cabo. So you're a couple of quarters into the NET launch. Maybe you could just frame out the opportunity that you see in NET, how has the launch gone versus expectations? And I think you're at 4% of the business in the last quarter. And I guess, what's factored in, if anything, to fiscal '25 guidance on cabo and NET?

Question: Sean Laaman - Morgan Stanley & Co Ltd - Analyst : Sure. Thanks, Mike. And I guess sort of still on cabo, you've got long-term sales guidance out there, I think, almost to $3 billion by the end of the decade. How important the plank is net of that? And just to gauge your confidence of getting to that near $3 billion. I think consensus still has a significant haircut on that number.

Question: Sean Laaman - Morgan Stanley & Co Ltd - Analyst : Awesome. And maybe I've got a bunch of questions on zanza and some of the readouts that may be coming out some of the events. But maybe just for those that are less familiar with the Exelixis story, what is zanza? How does it compare to cabo? And what's your vision for the program with zanza?

Question: Sean Laaman - Morgan Stanley & Co Ltd - Analyst : Wonderful. And more recently, we saw the mCRC STELLAR-303 data, and you announced positive top line results and start seeing OS improvement versus rego in the ITT population. The trial is proceeding to plan final analysis for the other dual OS primary endpoint in patients without liver mets. Can you remind us of the biological differences between the two patient populations and how your study design has evolved since the first iteration?

Question: Sean Laaman - Morgan Stanley & Co Ltd - Analyst : Got you. And how do your OS expectations for patients with liver mets versus non-liver mets versus the blended ITT population?

Question: Sean Laaman - Morgan Stanley & Co Ltd - Analyst : Yes, please.

Question: Sean Laaman - Morgan Stanley & Co Ltd - Analyst : Okay. Okay. Looking at the available mCRC therapies and what's considered standard of care, how are you thinking about rego versus zanza in terms of the competitive bar in this patient population?

Question: Sean Laaman - Morgan Stanley & Co Ltd - Analyst : Sure. Next question I get a lot of inbound on. So you indicated that you plan to file for approval in this indication as quickly as possible. When might we be able to hear an update?

Question: Sean Laaman - Morgan Stanley & Co Ltd - Analyst : Okay. You mentioned going to early lines of CRC with a focus on the post-adjuvant setting based on the 303 data. Can you talk about how you're thinking about the patient opportunity and market?

Question: Sean Laaman - Morgan Stanley & Co Ltd - Analyst : Wonderful. Thank you, Mike. And moving over to 304 and non-clear cell CC. So I think you've updated the timeline pushed out to '26. So how would you frame the way investors should think about that changing?

Question: Sean Laaman - Morgan Stanley & Co Ltd - Analyst : Sure. And STELLAR-311 in advanced NET has begun. Is this complete overlap with the current cabo approval? And how are you thinking about potential cannibalization?

Question: Sean Laaman - Morgan Stanley & Co Ltd - Analyst : Sure, sure. Still laying out the landscape for zanza and you announced the discontinuation in head and neck and if you could frame out sort of the reasons why I think you said emerging competition and there are bigger opportunities elsewhere for zanza. So maybe just a bit more measure on the (inaudible)

Question: Sean Laaman - Morgan Stanley & Co Ltd - Analyst : Sure, of course. And you mentioned earlier on cabo that you've got the peak revenue guidance out there before the end of the decade, but consensus is somewhat shy of that. And that's even more true for zanza where you've got, I think it's a $5 billion peak revenue forecast in 2034, if I remember correctly.

Question: Sean Laaman - Morgan Stanley & Co Ltd - Analyst : And consensus is probably about half that number. But just, I guess, sort of the feedback from investors, what are you hearing? What are the proving points that you think are going to get a more optimistic view from Street?

Question: Sean Laaman - Morgan Stanley & Co Ltd - Analyst : Awesome, Mike. And on the four early-stage programs in Phase 1, is the one that gets you excited the most? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. SEPTEMBER 09, 2025 / 12:30PM, EXEL.OQ - Exelixis Inc at Morgan Stanley Global Healthcare Conference

Question: Sean Laaman - Morgan Stanley & Co Ltd - Analyst : Sure, sure. Wonderful. And I guess, I don't get a lot of inbound on this, but just lastly, maybe -- and what I find fascinating is that the balance sheet the company has and the cash flow that you're generating. I don't think it gets like a lot of attention, but I think it should.

Question: Sean Laaman - Morgan Stanley & Co Ltd - Analyst : So just sort of your thoughts around OpEx going forward.

Question: Sean Laaman - Morgan Stanley & Co Ltd - Analyst : Awesome. Well, we're fresh out of time, but it's been wonderful to talk to you, Mike.

Question: Sean Laaman - Morgan Stanley & Co Ltd - Analyst : Thanks for attending. I really appreciate it.