Exelixis Earnings: Cabometyx Achieves Strong Sales and Pipeline Makes Progress; Shares Fairly Valued

Exelixis’ second-quarter results were highlighted by quarterly net revenue of nearly $410 million, representing an 18% increase from the prior-year period. Cabometyx drove the increase in net product revenue was thanks to greater sales volume and a higher average net selling price. Exelixis’ lead molecule, cabozantinib, is the active ingredient in two of the company’s three approved drugs: Cabometyx and Cometriq. We continue to forecast over $1.8 billion in total revenue in 2023, driven by strong performance from the cabozantinib products. We maintain our fair value estimate of $18.90 per share, High Uncertainty Rating, and no economic moat rating. Furthermore, we view shares as fairly valued, currently trading in 3-star territory.