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Exelixis Inc EXEL

Morningstar Rating
$22.46 −0.14 (0.62%)
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Company Report

No-Moat Exelixis Faces Cabozantinib Patent Losses; Early-Stage Pipeline Makes Progress

Exelixis is best known for its discovery of cabozantinib, a tyrosine kinase inhibitor (TKI) that was approved in 2012 for medullary thyroid cancer (MTC). This small molecule was later approved for the treatment of renal cell carcinoma (RCC) as well as hepatocellular carcinoma (HCC). The cabozantinib opportunity has room to grow with several late-stage trials evaluating combination therapies. Although cabozantinib has generated strong returns, we believe Exelixis' long-term outlook has a high degree of uncertainty given the company's relatively early-stage pipeline outside of cabozantinib. This is exacerbated by cabozantinib's upcoming patent expiration. We believe generics could impact Exelixis' sales as early as 2027 after cabozantinib's composition of matter patent expires in 2026. The severity of the patent loss would depend on whether secondary patents are upheld in court and whether label expansions are approved.

Price vs Fair Value

EXEL is trading at a 742% premium.
Price
$22.60
Fair Value
$42.10
Uncertainty
High
1-Star Price
$53.30
5-Star Price
$18.34
Economic Moat
Byfm
Capital Allocation
Rjttdvlx

Bulls Say, Bears Say

Bulls

Cabozantinib has been effective in a variety of cancers, including kidney, liver, and thyroid cancers, and label expansions could further expand the drug’s market opportunity.

Bears

Cabozantinib is the active ingredient in two of Exelixis' three approved drugs (Cabometyx and Cometriq) and its strongest U.S. patent covering cabozantinib’s composition of matter expires in 2026.

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News

Trading Information

Previous Close Price
$22.60
Day Range
$22.4422.75
52-Week Range
$18.6424.34
Bid/Ask
$22.45 / $22.77
Market Cap
$6.54 Bil
Volume/Avg
1.1 Mil / 1.8 Mil

Key Statistics

Price/Earnings (Normalized)
22.71
Price/Sales
3.87
Dividend Yield (Trailing)
Dividend Yield (Forward)
Total Yield
8.36%

Company Profile

Exelixis is a biopharmaceutical firm that discovers, develops, and commercializes treatments for cancer. Its lead molecule, cabozantinib, is indicated for the treatment of patients with metastatic medullary thyroid cancer under the name Cometriq and for the treatment of kidney and liver cancer under the name Cabometyx. Exelixis and its partner Roche have also brought Cotellic to market for the treatment of melanoma.
Sector
Healthcare
Industry
Biotechnology
Stock Style Box
Small Growth
Total Number of Employees
1,310

Competitors

Valuation

Metric
EXEL
UCB
JAZZ
Price/Earnings (Normalized)
22.7130.956.44
Price/Book Value
3.133.041.87
Price/Sales
3.875.351.98
Price/Cash Flow
20.8730.666.31
Price/Earnings
EXEL
UCB
JAZZ

Financial Strength

Metric
EXEL
UCB
JAZZ
Quick Ratio
3.230.841.62
Current Ratio
3.461.322.27
Interest Coverage
3.881.86
Quick Ratio
EXEL
UCB
JAZZ

Profitability

Metric
EXEL
UCB
JAZZ
Return on Assets (Normalized)
9.61%5.10%11.13%
Return on Equity (Normalized)
12.20%8.82%35.21%
Return on Invested Capital (Normalized)
8.59%7.41%16.02%
Return on Assets
EXEL
UCB
JAZZ
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