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.

Show Full description

1.b. Last Insights on EXEL

Exelixis' recent performance was driven by strong Q3 results, with earnings and revenue beats, fueled by Cabometyx sales. The company narrowed its 2025 guidance and announced preliminary fiscal year 2025 financial results, with revenues approximately $2.32B. Exelixis also provided 2026 financial guidance, expecting $2.525-$2.625B in revenues. Institutional investors, such as Arrowstreet Capital and Cwm LLC, have increased their holdings in the company. Additionally, Exelixis received a "Moderate Buy" rating from brokerages, with 15 buy ratings and 1 strong buy rating.

1.c. Company Highlights

Last Price	43.63
Change Percentage	-1.20%
Open	44.05
Previous Close	44.16
Market Cap ( Millions)	11698
Volume	1959230
Year High	49.62
Year Low	32.38
M A 50	43.62
M A 200	41.51

FCF Yield	7.34%
Dividend Yield	0.00%
ROE	36.89%
Debt / Equity	8.01%
Net Debt / EBIDTA	-33.11%
Price To Book	5.48
Price Earnings Ratio	15.14
Price To FCF	13.62
Price To sales	5.04
EV / EBITDA	12.18

2. Exelixis' Strong FY2025 Results Set Stage for Continued Growth

Exelixis reported total revenues of $599 million in the fourth quarter, with cabozantinib franchise net product revenues of $546.6 million. The company's GAAP net income was $244.5 million, or $2 per share basic and $0.88 per share diluted, with actual EPS coming in at $0.94, beating estimates of $0.77. Gross to net for the cabozantinib franchise was 28.5%, and the company expects it to be between 31-32% for the full year 2026. The strong financial performance was driven by the cabozantinib franchise, with US cabozantinib franchise net product revenues growing 17% to $2.12 billion in 2025.

Publication Date: Feb -15

📋 Highlights

Pipeline Advancements and Growth Prospects

The company is excited to accelerate zanzalintinib as their next potential oncology franchise opportunity, with the FDA accepting their NDA for the ZanzaAteza combination in third-line plus CRC. Exelixis has expedited the build-out of their GI sales team to maximize the impact of potentially launching two drugs in different indications in successive years. Zanzalintinib is rapidly advancing with seven ongoing and soon-to-start pivotal trials, and the company is prioritizing it as a monotherapy and in combinations, existing and new indications.

Financial Position and Guidance

Exelixis has a strong balance sheet, with $1.66 billion in cash and marketable securities, and $590 million remaining under their $750 million stock repurchase plan. The company provided financial guidance for the full year 2026, with details on Slide 19 of their earnings presentation. Analysts estimate next year's revenue growth at 11.3%, indicating a continued strong trajectory for the company.

Valuation and Growth Expectations

With a P/E Ratio of 22.17, P/B Ratio of 5.52, and ROE of 25.11%, Exelixis appears to be reasonably valued given its strong growth prospects. The company's EV/EBITDA ratio of 16.73 also suggests a reasonable valuation. As Exelixis continues to advance its pipeline and drive growth, investors will be watching for updates on zanzalintinib's progress and the company's ability to execute on its strategy.

Future Milestones and Expectations

Exelixis expects to announce top-line results for the STELLAR-304 study, although the exact timing and format are still to be determined. The company also expects updates from the SAMHSA study at the ASCO GU meeting, although the details are not yet available. Overall, Exelixis is confident in its position and expects significant growth in 2026, driven by its strong portfolio and launch preparations for ZANZA.

3. NewsRoom

Exelixis: The Cash‑Generating Biotech That I Think Deserves a Closer Look in 2026

Feb -20

Source: fool.com

Bob Oliver Sells 30,250 Shares of Exelixis (NASDAQ:EXEL) Stock

Feb -20

Source: defenseworld.net

Christopher Senner Sells 34,278 Shares of Exelixis (NASDAQ:EXEL) Stock

Feb -20

Source: defenseworld.net

Christopher Senner Sells 30,617 Shares of Exelixis (NASDAQ:EXEL) Stock

Feb -20

Source: defenseworld.net

Brenda Hefti Sells 18,669 Shares of Exelixis (NASDAQ:EXEL) Stock

Feb -20

Source: defenseworld.net

Illinois Municipal Retirement Fund Boosts Position in Exelixis, Inc. $EXEL

Feb -14

Source: defenseworld.net

EXEL or LQDA: Which Is the Better Value Stock Right Now?

Feb -12

Source: zacks.com

Exelixis Reports Solid Earnings—Are New Highs Back on the Table?

Feb -12

Source: marketbeat.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: 6.4/10

Value: 4.7

Growth: 3.8

Quality: 7.4

Yield: 4.0

Momentum: 9.5

Volatility: 9.0

1-Year Total Return ->

Exelixis

A-Score: 5.9/10

Value: 4.1

Growth: 8.0

Quality: 9.4

Yield: 0.0

Momentum: 8.5

Volatility: 5.3

1-Year Total Return ->

Novavax

A-Score: 4.7/10

Value: 9.4

Growth: 5.4

Quality: 8.5

Yield: 0.0

Momentum: 3.0

Volatility: 1.7

1-Year Total Return ->

Corcept Therapeutics

A-Score: 4.6/10

Value: 0.0

Growth: 7.8

Quality: 8.4

Yield: 0.0

Momentum: 9.5

Volatility: 1.7

1-Year Total Return ->

Arcellx

A-Score: 4.2/10

Value: 6.2

Growth: 5.8

Quality: 5.0

Yield: 0.0

Momentum: 4.5

Volatility: 3.7

1-Year Total Return ->

Alpine Immune Sciences

A-Score: 4.0/10

Value: 6.0

Growth: 6.6

Quality: 4.2

Yield: 0.0

Momentum: 6.0

Volatility: 1.0

1-Year Total Return ->

Peers Metrics

12.e Scoring ^Insights

12.f DCF ^BETA

Parameters

Short Term Growth

-3.59%

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' Strong FY2025 Results Set Stage for Continued Growth

Pipeline Advancements and Growth Prospects

Financial Position and Guidance

Valuation and Growth Expectations

Future Milestones and 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

43.63$

Current Price

43.63$

Potential

-0.00%

Expected Cash-Flows

12.e Scoring ^Insights

12.f DCF ^BETA