Exelixis, Inc.

What they do

Exelixis discovers, develops and commercializes cancer medicines. Its flagship molecule cabozantinib is approved as CABOMETYX tablets for advanced renal cell carcinoma (alone and with BMS's nivolumab), previously treated hepatocellular carcinoma, RAI-refractory differentiated thyroid cancer, and pancreatic and extra-pancreatic neuroendocrine tumors, and as COMETRIQ capsules for medullary thyroid cancer. Two other discovered products, COTELLIC (cobimetinib, with Genentech) and MINNEBRO (esaxerenone, licensed to Daiichi Sankyo), also contribute. The company is advancing zanzalintinib and earlier-stage assets including XL309, XB010, XB628 and XB371.

Revenue drivers

• Cabozantinib U.S. net product revenues — Sales of CABOMETYX and COMETRIQ in the U.S. were $573.0 million in Q2 2026, up from $520.0 million a year earlier, and account for the majority of total revenues.
• Collaboration revenues (ex-U.S. royalties and services) — License and collaboration services revenues were $55.7 million in Q2 2026 versus $48.2 million in Q2 2025, driven mainly by higher royalties on Ipsen's ex-U.S. cabozantinib sales, partly offset by lower development cost reimbursements.
• COTELLIC and MINNEBRO — COTELLIC (cobimetinib) is marketed for advanced melanoma under a Genentech collaboration, and MINNEBRO (esaxerenone) is licensed to Daiichi Sankyo for hypertension in Japan; both are secondary to the cabozantinib franchise.

Recent performance

Second quarter 2026 total revenues were $628.7 million, compared with $568.3 million in the prior-year quarter. Net product revenues were $573.0 million versus $520.0 million, primarily on higher sales volume. Q2 2026 R&D expense was $212.0 million and SG&A was $147.6 million, both up year over year. GAAP net income was $212.1 million, or $0.82 diluted, and non-GAAP net income was $237.1 million, or $0.91 diluted.

Strategy

Management plans to fund a broad pipeline of small molecule and biotherapeutics programs, including ADCs, from operating cash flow while investing in R&D. The priority near-term effort is preparing for a potential zanzalintinib launch in metastatic colorectal cancer pending regulatory approval later in 2026. Zanzalintinib also has ongoing and planned pivotal trials in clear cell and non-clear cell RCC and neuroendocrine tumors, plus earlier-stage work in meningioma, lung cancer and castration-resistant prostate cancer. The company says it is maintaining disciplined expense management and capital allocation, returning capital to shareholders and pursuing opportunistic business development.

Risks

• Concentration in cabozantinib — The company states its growth depends on commercial success of CABOMETYX in its approved indications, and cabozantinib sales account for the majority of revenues.
• Generic competition — The timing of generic entrants to CABOMETYX, and legislative or regulatory action lowering barriers to generic drugs, could limit revenue most notably from CABOMETYX.
• Pipeline and regulatory uncertainty — Clinical testing is lengthy, costly and uncertain, and FDA or foreign approval processes may not result in additional cabozantinib indications or approvals for candidates such as zanzalintinib.
• Payer and pricing pressure — Failure to obtain or maintain coverage and reimbursement from government and third-party payers, and U.S. drug pricing scrutiny, could reduce revenue or harm the business.

Outlook

The company is advancing preparations for a potential zanzalintinib launch in metastatic colorectal cancer, pending FDA review and a decision expected later in 2026. Zanzalintinib pivotal data readouts, enrollment and new study initiations are described as priority R&D goals for the year. Management says it will keep funding R&D, return capital to shareholders and consider business development where appropriate.