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Exelixis Stock Rises 13.3% Year to Date: Buy, Sell or Hold?
EXELExelixis(EXEL) ZACKS·2025-03-26 20:01

Core Viewpoint - Exelixis, Inc. (EXEL) has demonstrated strong stock performance, rising 13.3% year to date, outperforming both the industry and the S&P 500 Index, driven by robust quarterly results, raised guidance, and shareholder return initiatives [1][3]. Financial Performance - The company announced a new share repurchase program worth 500million,whichcontributedtoarallyinitsstockprice[4].−Exelixisreportedbetter−than−expectedfourth−quarterresults,furtherdrivingstockperformance[4].ProductPerformance−Exelixis′leaddrug,Cabometyx,remainstheleadingtyrosinekinaseinhibitor(TKI)forrenalcellcarcinoma(RCC)treatment,withapprovalsforuseincombinationwithBristolMyers′Opdivo[5].−Cabometyxisalsoapprovedforhepatocellularcarcinomaandhasreceivedorphandrugdesignationfortreatingadvancedpancreaticneuroendocrinetumors(pNET)[6][7].PipelineDevelopment−Thecompanyisadvancingitsoncologyportfoliowithzanzalintinib,anext−generationoralTKI,showingpromisingresultsincombinationwithTecentriqformetastaticcolorectalcancer[8][9].−ExelixisiscollaboratingwithMercktoevaluatezanzalintinibinheadandnecksquamouscellcarcinoma(HNSCC)andotherstudies[10][11].−ThepipelineincludesadditionalcandidateslikeXL495,XL309,andXB010,withplansforclinicaldevelopmentofthreebiotherapeuticsin2025[12][13].ShareholderValueInitiatives−Exelixishasauthorizedanadditional500 million, which contributed to a rally in its stock price [4]. - Exelixis reported better-than-expected fourth-quarter results, further driving stock performance [4]. Product Performance - Exelixis' lead drug, Cabometyx, remains the leading tyrosine kinase inhibitor (TKI) for renal cell carcinoma (RCC) treatment, with approvals for use in combination with Bristol Myers' Opdivo [5]. - Cabometyx is also approved for hepatocellular carcinoma and has received orphan drug designation for treating advanced pancreatic neuroendocrine tumors (pNET) [6][7]. Pipeline Development - The company is advancing its oncology portfolio with zanzalintinib, a next-generation oral TKI, showing promising results in combination with Tecentriq for metastatic colorectal cancer [8][9]. - Exelixis is collaborating with Merck to evaluate zanzalintinib in head and neck squamous cell carcinoma (HNSCC) and other studies [10][11]. - The pipeline includes additional candidates like XL495, XL309, and XB010, with plans for clinical development of three biotherapeutics in 2025 [12][13]. Shareholder Value Initiatives - Exelixis has authorized an additional 500 million stock repurchase program, marking the fourth such initiative since March 2023, aiming to complete the ongoing repurchase program by Q2 2025 [14][15]. - The company has returned over $1.2 billion to shareholders through repurchase programs by the end of 2024 [15]. Investment Outlook - The company’s efforts to enhance shareholder value and the potential for Cabometyx's label expansion are viewed positively, although recent stock performance may limit further gains [16][17].