Exelixis, Inc. (EXEL) | Investment Case

1. Company Snapshot

1.a. Company Description

Exelixis, Inc., an oncology-focused biotechnology company, focuses on the discovery, development, and commercialization of new medicines to treat cancers in the United States.The company's products include CABOMETYX tablets for the treatment of patients with advanced renal cell carcinoma who received prior anti-angiogenic therapy; and COMETRIQ capsules for the treatment of patients with progressive and metastatic medullary thyroid cancer.Its CABOMETYX and COMETRIQ are derived from cabozantinib, an inhibitor of multiple tyrosine kinases, including MET, AXL, RET, and VEGF receptors.

The company also offers COTELLIC, an inhibitor of MEK as a combination regimen to treat advanced melanoma; and MINNEBRO, an oral non-steroidal selective blocker of the mineralocorticoid receptor for the treatment of hypertension in Japan.In addition, it is developing XL092, an oral tyrosine kinase inhibitor that targets VEGF receptors, MET, AXL, MER, and other kinases implicated in growth and spread of cancer; XB002, an antibody-drug conjugate composed of human mAb against tissue factor (TF) for the treatment of advanced solid tumors; XL102, an orally bioavailable cyclin-dependent kinase 7 (CDK7) inhibitor for the treatment of advanced or metastatic solid tumors; and XB002 for the treatment of non-hodgkin's lymphoma.Exelixis, Inc.

has research collaborations and license agreements with Ipsen Pharma SAS; Takeda Pharmaceutical Company Ltd.; F.Hoffmann-La Roche Ltd.; Redwood Bioscience, Inc.; R.P. Scherer Technologies, LLC; Catalent Pharma Solutions, Inc.; NBE Therapeutics AG; Aurigene Discovery Technologies Limited; Iconic Therapeutics, Inc.; Invenra, Inc.; StemSynergy Therapeutics, Inc.; Genentech, Inc.; Bristol-Myers Squibb Company; and Daiichi Sankyo Company, Limited.The company was formerly known as Exelixis Pharmaceuticals, Inc.

and changed its name to Exelixis, Inc.in February 2000.Exelixis, Inc.

was incorporated in 1994 and is headquartered in Alameda, California.

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1.b. Last Insights on EXEL

Exelixis, Inc.'s recent performance was driven by strong Q3 results, with earnings and revenue beats, fueled by Cabometyx sales. The company's quarterly earnings of $0.78 per share surpassed the Zacks Consensus Estimate of $0.68 per share. Institutional investors, such as Sequoia Financial Advisors LLC and Oppenheimer Asset Management Inc., have recently taken positions in the company. Additionally, Exelixis' share repurchase program, which aims to boost EPS and shareholder value, has been viewed positively. The company's growth prospects and narrowed 2025 guidance have also contributed to its recent performance.

1.c. Company Highlights

Last Price	44.36
Change Percentage	-0.02%
Open	44.2
Previous Close	44.37
Market Cap ( Millions)	11894
Volume	2163216
Year High	49.62
Year Low	31.9
M A 50	40.49
M A 200	39.81

FCF Yield	6.53%
Dividend Yield	0.00%
ROE	31.64%
Debt / Equity	8.17%
Net Debt / EBIDTA	-23.16%
Price To Book	5.51
Price Earnings Ratio	17.56
Price To FCF	15.31
Price To sales	5.2
EV / EBITDA	13.55

2. Exelixis' Q3 2025 Earnings: Strong Cabozantinib Business and Zanzalintinib Progress

Exelixis reported total revenues of $598 million in Q3 2025, with cabozantinib franchise net product revenues reaching $543 million, a 14% year-over-year increase. The gross margin for the cabozantinib franchise was 30.4%. The company's EPS came in at $0.78, beating estimates of $0.68. The strong revenue growth and beat on EPS indicate a solid financial performance.

Publication Date: Nov -08

                                    📋 Highlights
                                    Cabozantinib Revenue Growth:
                                                U.S. Cabo franchise net product revenues grew 14% YoY to $543M in Q3 2025.
Zanzalintinib Trial Success:
                                                STELLAR-303 demonstrated 20% reduction in mortality risk for CRC, with 900-patient enrollment exceeding Lonsurf-bev study.
2025 Financial Guidance:
                                                Total Q3 revenue reached $598M; cabozantinib gross margin at 30.4%, with full-year guidance raised to upper-end ranges.
NET Market Leadership:
                                                Cabo achieved >40% new patient share in oral second-line+ NET and 46% TKI prescription share in RCC (up 4% YoY).
Commercial Expansion Plans:
                                                Exelixis plans to build GI franchise infrastructure for zanza, targeting $100M+ in 2025 NET revenue and colorectal cancer NDA filing.

                                

Revenue Growth and Cabozantinib Performance

The CABOMETYX business remained strong in Q3 2025, with the launch in neuroendocrine tumors (NET) off to a great start. The company reported that CABOMETYX grew 4 share points year-over-year, outpacing the market basket growth rate. As Mike Morrissey mentioned, the CABOMETYX franchise net product revenues grew approximately 14% year-over-year, driven by strong demand and commercial activities. The revenue for CABOMETYX in NET for 2025 is expected to exceed $100 million.

Zanzalintinib Progress and Future Plans

Exelixis is making progress with zanzalintinib, its next oncology franchise opportunity, with seven ongoing and soon-to-start pivotal trials. The company is excited about the results of the STELLAR-303 trial, which met one of its dual primary endpoints, demonstrating a 20% reduction in the risk of death. The company plans to file for NDA submission based on the single hit on one of the dual primary endpoints in the ITT population, which will give them the broadest label possible.

Valuation and Growth Expectations

With a P/E Ratio of 16.16 and an expected revenue growth rate of 7.9% next year, the market is pricing in a moderate growth trajectory for Exelixis. The company's ROE of 31.64% and ROIC of 25.36% indicate strong profitability. The Free Cash Flow Yield of 7.1% suggests that the company is generating significant cash flows. Overall, the valuation metrics suggest that Exelixis is reasonably priced, given its growth prospects and profitability.

3. NewsRoom

Exelixis to Webcast Virtual 2025 Research & Development (R&D) Day on Wednesday, December 10, 2025

Dec -03

Source: businesswire.com

Arrowstreet Capital Limited Partnership Grows Holdings in Exelixis, Inc. $EXEL

Dec -03

Source: defenseworld.net

2 Under-the-Radar Stocks to Buy Heading Into 2026

Dec -02

Source: fool.com

Capital Fund Management S.A. Acquires 17,673 Shares of Exelixis, Inc. $EXEL

Nov -29

Source: defenseworld.net

Why Exelixis (EXEL) International Revenue Trends Deserve Your Attention

Nov -17

Source: zacks.com

Exelixis, Inc. (EXEL) Presents at Guggenheim Securities 2nd Annual Healthcare Innovation Conference Transcript

Nov -10

Source: seekingalpha.com

Exelixis: The STELLAR Win Is A Mixed Bag, But Things Look Positive Still

Nov -07

Source: seekingalpha.com

Exelixis to Webcast Fireside Chats as Part of Upcoming Investor Conferences in November

Nov -06

Source: businesswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (9.00%)

6. Segments

Medicines for Difficult-to-treat Cancers

Expected Growth: 9.0%

Exelixis' medicines for difficult-to-treat cancers drive 9.0% growth, fueled by increasing adoption of Cabometyx in renal cell carcinoma, expansion into new indications, and strong demand for Cometriq in medullary thyroid cancer. Additionally, strategic partnerships and investments in R&D accelerate pipeline development, further boosting growth.

7. Detailed Products

Cabometyx

A tablet formulation of cabozantinib, a small molecule inhibitor of multiple receptor tyrosine kinases, including VEGFR, MET, and AXL, for the treatment of advanced renal cell carcinoma (RCC) and hepatocellular carcinoma (HCC).

Cometriq

A capsule formulation of cabozantinib, a small molecule inhibitor of multiple receptor tyrosine kinases, including VEGFR, MET, and AXL, for the treatment of progressive, metastatic medullary thyroid cancer (MTC).

Cotellic

A MEK inhibitor, used in combination with vemurafenib, a BRAF inhibitor, for the treatment of patients with unresectable or metastatic melanoma with a BRAF V600E or V600K mutation.

8. Exelixis, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Exelixis, Inc. has a moderate threat of substitutes due to the availability of alternative cancer treatments. However, the company's focus on developing novel therapies with improved efficacy and safety profiles helps to mitigate this threat.

Bargaining Power Of Customers

Exelixis, Inc. has a low bargaining power of customers due to the specialized nature of its products and the lack of alternative treatment options for certain types of cancer.

Bargaining Power Of Suppliers

Exelixis, Inc. has a moderate bargaining power of suppliers due to its reliance on a limited number of suppliers for raw materials and manufacturing services. However, the company's strong relationships with its suppliers help to mitigate this risk.

Threat Of New Entrants

Exelixis, Inc. faces a high threat of new entrants due to the attractiveness of the oncology market and the increasing number of biotech companies focused on cancer research and development.

Intensity Of Rivalry

Exelixis, Inc. operates in a highly competitive oncology market with several established players, leading to a high intensity of rivalry. The company must continue to innovate and differentiate its products to maintain its market position.

9. SWOT Analysis

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

	Value
Debt Weight	8.70%
Debt Cost	3.95%
Equity Weight	91.30%
Equity Cost	6.78%
WACC	6.54%
Leverage	9.53%

11. Quality Control: Exelixis, Inc. passed 6 out of 9 key points

Strong Liquidity

Low Debt

Strong Interest Coverage

Healthy Cash Flow

Operating Efficiency

Strong Return On Equity

Consistent Revenue Growth

Consistent Operating Cash Flow Growth

Margin Improvement

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Royalty Pharma

A-Score: 6.2/10

Value: 4.9

Growth: 3.8

Quality: 7.4

Yield: 4.0

Momentum: 8.5

Volatility: 9.0

1-Year Total Return ->

Exelixis

A-Score: 5.8/10

Value: 3.4

Growth: 7.9

Quality: 9.2

Yield: 0.0

Momentum: 9.5

Volatility: 5.0

1-Year Total Return ->

Corcept Therapeutics

A-Score: 4.8/10

Value: 0.3

Growth: 8.0

Quality: 8.8

Yield: 0.0

Momentum: 10.0

Volatility: 1.7

1-Year Total Return ->

Novavax

A-Score: 3.9/10

Value: 7.1

Growth: 5.4

Quality: 7.2

Yield: 0.0

Momentum: 2.5

Volatility: 1.3

1-Year Total Return ->

Arcellx

A-Score: 3.9/10

Value: 6.0

Growth: 5.7

Quality: 5.0

Yield: 0.0

Momentum: 3.0

Volatility: 4.0

1-Year Total Return ->

Alpine Immune Sciences

A-Score: 3.8/10

Value: 6.0

Growth: 6.6

Quality: 4.0

Yield: 0.0

Momentum: 5.0

Volatility: 1.0

1-Year Total Return ->

Peers Metrics

12.e Scoring ^Insights

12.f DCF ^BETA

Parameters

Short Term Growth

-1.37%

Short term Time

10.0

Long-Term Growth

2.00%

WACC

6.54%

Exelixis, Inc. - US30161Q1040

1. Company Snapshot

1.a. Company Description

1.b. Last Insights on EXEL

1.c. Company Highlights

Less Volatile

Expensive

Better Quality

Earnings Miss

Revenues Miss

Earnings Beats

Revenues Beats

Strong Momentum

Higher Growth

2. Exelixis' Q3 2025 Earnings: Strong Cabozantinib Business and Zanzalintinib Progress

Revenue Growth and Cabozantinib Performance

Zanzalintinib Progress and Future Plans

Valuation and Growth Expectations

3. NewsRoom

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (9.00%)

6. Segments

Medicines for Difficult-to-treat Cancers

Expected Growth: 9.0%

7. Detailed Products

Cabometyx

Cometriq

Cotellic

8. Exelixis, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Bargaining Power Of Customers

Bargaining Power Of Suppliers

Threat Of New Entrants

Intensity Of Rivalry

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

11. Quality Control: Exelixis, Inc. passed 6 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

44.36$

Current Price

44.36$

Potential

-0.00%

Expected Cash-Flows

12.e Scoring ^Insights

12.f DCF ^BETA