Is EXEL’s Portfolio Strategy Being Tested by Mixed Results from Zanzalintinib Trial?

• Exelixis recently announced detailed results from its phase 3 STELLAR-303 trial, showing that the combination of zanzalintinib and atezolizumab achieved a 20% reduction in risk of death versus regorafenib in previously treated metastatic colorectal cancer patients.
• While the combination met one of its dual primary endpoints and extended median overall survival, limited improvement in progression-free survival and a higher rate of severe adverse events have raised mixed expectations for its future clinical and commercial impact.
• We'll explore how these mixed phase 3 results for zanzalintinib may impact Exelixis' growth prospects and portfolio diversification story.

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Exelixis Investment Narrative Recap

To be a shareholder in Exelixis, you need to believe that the company can successfully move beyond its dependence on CABOMETYX and create new sources of growth, particularly through pipeline success. The recent mixed results from the phase 3 STELLAR-303 trial, while showing a survival benefit for zanzalintinib in metastatic colorectal cancer, may temper immediate enthusiasm for pipeline-driven revenue diversification, the most important catalyst remains regulatory progress for new drug candidates, and the biggest risk continues to be overreliance on CABOMETYX. Overall, STELLAR-303 does not materially shift these near-term dynamics.

The recent CABINET phase 3 trial results for CABOMETYX in neuroendocrine tumors are especially relevant, as they reinforce the product's role in supporting topline growth and partially mitigating single-product dependency. Both announcements highlight the ongoing efforts to solidify and expand Exelixis’ position in key oncology markets, but they also emphasize the magnitude of the challenge in achieving robust, diversified revenue streams. Despite this, investors need to be aware that success with new products may not…

Read the full narrative on Exelixis (it's free!)

Exelixis' narrative projects $3.1 billion in revenue and $1.1 billion in earnings by 2028. This requires an 11.7% yearly revenue growth and a $497.7 million earnings increase from current earnings of $602.3 million.

Uncover how Exelixis' forecasts yield a $44.06 fair value, a 28% upside to its current price.

Exploring Other Perspectives

Simply Wall St Community members estimate Exelixis’ fair value across a striking US$36 to US$195 range, with 11 perspectives represented. As ongoing pipeline results drive both excitement and uncertainty, you can see just how widely views of the company’s future performance can differ.

Explore 11 other fair value estimates on Exelixis - why the stock might be worth over 5x more than the current price!

Build Your Own Exelixis Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Exelixis research is our analysis highlighting 5 key rewards that could impact your investment decision.
• Our free Exelixis research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Exelixis' overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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