Exelixis Earnings: Cabometyx Posts Strong Sales, but Patent Expirations Present Long-Term Concerns

Exelixis’ third-quarter results were highlighted by quarterly net product revenue of nearly $426 million, representing a 16% increase from the prior-year period. Including license and collaboration revenue, third-quarter revenue totaled nearly $472 million. Greater sales volume and a higher average net selling price drove Exelixis’ revenue. We continue to forecast roughly $1.84 billion in total revenue in 2023, driven by strong performance from the cabozantinib franchise. We maintain our fair value estimate of $18.90 per share, High Uncertainty Rating, and no economic moat rating. We view shares as fairly valued, currently trading in 3-star territory.