3 Reasons Exelixis Stock Could Deliver Market‑Beating Returns Over the Next Decade

Core Insights - Exelixis aims to become a top five solid tumor oncology company, supported by its successful drug cabozantinib, which has significantly boosted its stock performance [1][2] Group 1: Company Overview - Exelixis is a small biotech company with a market capitalization of $11 billion and a gross margin of 96.39% [3] - The company's stock has increased over 20% in the past year and over 97% in the last five years [1] Group 2: Product Pipeline - Cabozantinib, marketed as Cabometyx and Cometriq, is the lead drug, approved for multiple cancer types including kidney, thyroid, liver, and advanced pancreatic neuroendocrine tumors [3][4] - The drug is undergoing a phase 3 trial for advanced neuroendocrine tumors and is protected from generic competition until early 2031 [5] Group 3: Financial Performance - In 2025, Exelixis reported a 7% revenue increase to $2.3 billion, primarily from cabozantinib, with earnings per share rising 57.9% to $2.78 [6] Group 4: New Drug Developments - Zanzalintinib received FDA approval for metastatic colorectal cancer and is involved in multiple phase 3 trials for various cancers [7] - The early-stage pipeline includes antibody-drug conjugates targeting cancer cells with high precision [8] Group 5: Strategic Partnerships - Exelixis collaborates with Takeda Pharmaceutical and Ipsen for cabozantinib sales in Japan [9] - An agreement with Natera will utilize its Signatera assay for enrolling colorectal cancer patients in zanzalintinib's phase 3 trial [10] - The company is also partnering with Merck for zanzalintinib trials in head and neck cancer and kidney cancer [11]