Exelixis: Cabometyx Drives Revenue While Zanzalintinib Emerges As Future Growth Engine

Summary

• Exelixis’s Cabometyx continues to drive revenue growth, prompting a raised 2024 forecast to $2.15–$2.2 billion. EXEL plans to diversify its oncology portfolio by launching one new indication for Zanzalintinib annually.
• Zanzalintinib could also grow into a $5 billion yearly revenue asset by 2033, potentially surpassing Cabometyx as Exelixis’s primary revenue source.
• The company has repurchased $462.4 million in shares this year, showcasing it's a shareholder-friendly company as well.
• Its relative valuation multiples and upside potential suggest EXEL still trades at a compelling price despite its recent appreciation.
• Thus, I maintain a “Buy” rating for Exelixis, as I believe Cabometyx’s revenue and Zanzalintinib’s long-term potential support robust long-term growth.