A biopharmaceutical company that makes cancer medicines, most notably cabozantinib, sold in the U.S. as CABOMETYX for kidney and liver cancers and as COMETRIQ for a rare thyroid cancer. Founded in 1994 by scientists from Yale and UC Berkeley who began by studying fruit flies and zebrafish to find drug targets, the company is now a fully integrated oncology drugmaker. Its name comes from the Greek word for "evolution," a nod to how the firm itself evolved from a genomics startup into a commercial drug company.
CABOMETYX volume growth slowed to 6% in Q2 2026, its lowest rate since the NET launch, as the August patent expiration nears.
CABOMETYX volume growth decelerated to 6% in Q2 2026, the slowest pace since the neuroendocrine tumor launch. rose 11% to $628.7 million and reached 39.5%, but R&D and SG&A costs climbed as the company prepared for the potential launch of zanzalintinib, its first pipeline drug now under FDA review. The CABOMETYX franchise faces its primary U.S. patent expiration in August 2026, and the quarter's volume trend raises the stakes for the zanzalintinib decision.
Key takeaways
CABOMETYX net product rose 10% to $573.0 million, driven by a 6% increase in unit volume and a 4% higher average net selling price — a further deceleration from the 7% volume growth in Q1 2026 and well below the 20% recorded a year ago.
Total rose 11% to $628.7 million, with collaboration revenues up 15% to $55.7 million on higher from partner Ipsen's ex-U.S. cabozantinib sales.
rose 16.3% to $248.4 million, producing a 39.5% , as the gain was partly offset by a 6% increase in R&D expenses to $212.0 million and a 9% increase in SG&A expenses to $147.6 million.
Section summaries
Management's Discussion and Analysis
Q2 2026 revenue grew 11% to $628.7M driven by CABOMETYX volume and price, while R&D and SG&A rose on zanzalintinib pre-launch investments.
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Net product revenues rose 10% to $573.0M, driven by a 6% increase in CABOMETYX unit volume and a 4% higher average net selling price.
Total collaboration revenues grew 15% to $55.7M, primarily from higher Ipsen royalties on ex-U.S. cabozantinib sales.
R&D expenses increased 6% to $212.0M, mainly due to higher clinical trial costs for zanzalintinib and biotherapeutics candidates XB371 and XB628.
R&D expenses rose 6% to $212.0 million, driven by higher clinical trial costs for zanzalintinib and biotherapeutics candidates XB371 and XB628, while SG&A rose 9% to $147.6 million on increased marketing activities for the anticipated zanzalintinib launch.
The company deployed $902.2 million to stock during the quarter, contributing to a decline in cash and marketable securities to $1.4 billion, while remaining debt-free.
The company stated it expects R&D and SG&A expenses to continue increasing for the remainder of 2026, driven by zanzalintinib pivotal trials and pre-launch activities.
What changed
The Q1 2026 filing flagged CABOMETYX volume growth in Q2 as the last full quarter before the August 2026 patent expiration: volume growth decelerated further to 6%, down from 7% in Q1 and 20% a year ago, confirming a downward trajectory heading into potential generic competition.
The Q1 2026 filing flagged the FDA decision on the zanzalintinib NDA for metastatic colorectal cancer: the filing does not report a decision, indicating the review remains ongoing.
The Q1 2026 filing flagged R&D expense trajectory, noting the company expected costs to increase: R&D rose 6% to $212.0 million, and management reiterated that expenses will continue rising for the rest of 2026.
What to watch
The FDA decision on the zanzalintinib NDA for metastatic colorectal cancer, which would be the first pipeline product to reach the market and a test of the company's ability to diversify beyond CABOMETYX.
CABOMETYX net product and volume in Q3 2026, the quarter that includes the August 2026 composition-of-matter patent expiration, to gauge the immediate impact of potential generic competition.
Any ANDA litigation developments or settlements as the August 2026 patent expiration passes, which will clarify the timing and scope of U.S. generic competition for CABOMETYX.
R&D and SG&A expense levels in Q3 2026, as the company stated it expects costs to continue increasing for the remainder of the year driven by zanzalintinib pivotal trials and pre-launch activities.
SG&A expenses rose 9% to $147.6M, reflecting increased marketing activities for the anticipated commercial launch of zanzalintinib.
Cash and investments decreased to $1.4B, largely due to $902.2M in stock repurchases under two authorized programs, partially offset by .
The company expects R&D and SG&A expenses to continue increasing for the remainder of 2026, driven by zanzalintinib pivotal trials and pre-launch activities.
The information required to be set forth under this Item 1 is incorporated by reference to “Note 11. Commitments and Contingencies – Legal Proceedings” of the Notes to Condensed Consolidated Financial Statements” in Part I, Item 1 of this Quarterly Report on Form 10-Q.
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The information required to be set forth under this Item 1 is incorporated by reference to “Note 11. Commitments and Contingencies – Legal Proceedings” of the Notes to Condensed Consolidated Financial Statements” in Part I, Item 1 of this Quarterly Report on Form 10-Q.
In addition to the information discussed elsewhere in this Quarterly Report on Form 10-Q, you should carefully review and consider the risk factors disclosed in Part I, Item 1A of our Fiscal 2025 Form 10-K. These risks could materially and adversely affect our business, financia…
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In addition to the information discussed elsewhere in this Quarterly Report on Form 10-Q, you should carefully review and consider the risk factors disclosed in Part I, Item 1A of our Fiscal 2025 Form 10-K. These risks could materially and adversely affect our business, financial condition and results of operations. The risks and uncertainties described therein are not the only ones we face. Additional risks and uncertainties not currently known to us or that we deem immaterial also may impair our business operations. As of the date of this Quarterly Report on Form 10-Q, there have been no material changes to the risk factors described in our Fiscal 2025 Form 10-K.