Exelixis (NASDAQ: EXEL), a biotechnology company based in the United States, is positioning itself as a formidable player in the oncology sector with aspirations to become one of the top five solid tumor oncology companies. The company’s trajectory appears promising, underscored by a strong performance in its stock price, which has appreciated over 20% in the past year and over 97% in the last five years. This growth is largely supported by its flagship drug, cabozantinib, a treatment that is fueling the company’s expanding pipeline of oncology therapies.
Cabozantinib, marketed under the brand names Cabometyx and Cometriq, is a pivotal asset for Exelixis. It is a leading therapy for kidney cancer and has also received approvals for the treatment of thyroid and liver cancer, along with advanced pancreatic neuroendocrine tumors. Cometriq, in capsule form, is specifically targeted at patients with progressive medullary thyroid cancer, a rare and aggressive condition. Additionally, cabozantinib is currently under investigation in a Phase 3 trial for treating advanced neuroendocrine tumors that arise from the lung, thymus, and gastrointestinal tract.
Importantly, Exelixis is likely to maintain exclusivity for cabozantinib until at least early 2031, having successfully defended its product against potential generic competition in a lawsuit filed against MSN Pharmaceuticals. In its latest fiscal report, Exelixis showed a revenue increase of 7%, totaling $2.3 billion, with earnings per share soaring by nearly 58%.
The company is also advancing its pipeline with notable developments, such as the FDA approval of zanzalintinib, which is being studied in combination with atezolizumab for previously treated metastatic colorectal cancer. An upcoming decision from the FDA regarding zanzalintinib’s application is expected no later than December 3. The drug is currently involved in four Phase 3 trials across various cancer types, alongside three early-stage trials.
In addition to its lead products, Exelixis is exploring innovative cancer treatments, including antibody-drug conjugates that specifically target and destroy cancer cells. The company has established strategic partnerships with other biotech firms to boost its market reach, notably collaborating with Takeda Pharmaceutical and Ipsen for distribution efforts in Japan. A recent agreement with Natera will enhance patient identification for a Phase 3 trial of zanzalintinib, utilizing Natera’s Signatera assay to identify colorectal cancer patients with minimal residual disease.
Moreover, Exelixis is collaborating with Merck on a Phase 3 trial of zanzalintinib in combination with Keytruda for head and neck cancer, as well as with Welireg for kidney cancer treatment.
However, potential investors should exercise caution, as the Motley Fool Stock Advisor has not included Exelixis in its latest selection of top investment choices, which includes stocks projected for strong future returns. The performance of Stock Advisor’s recommendations has historically outstripped the market substantially, with its total return averaging 916% compared to 194% for the S&P 500 since its inception.
As Exelixis navigates its ambitious goals, the company’s ability to innovate and expand its market presence will be critical in determining its future success in the competitive landscape of oncology therapeutics.
