• Exelixis recently submitted a US FDA application for its next-generation cancer drug zanzalintinib, seeking approval in combination with Roche’s Tecentriq for previously treated metastatic colorectal cancer.
• This filing highlights how Exelixis is leaning on its emerging pipeline to address future generic pressure on flagship therapy Cabometyx.
• Next, we’ll examine how advancing zanzalintinib toward potential approval could influence Exelixis’ investment narrative and long-term oncology focus.

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What Is Exelixis' Investment Narrative?

To own Exelixis, you need to be comfortable with a profitable, cash‑generating oncology company that is still very dependent on Cabometyx while it works to prove out a broader pipeline. The recent FDA submission for zanzalintinib in metastatic colorectal cancer matters because it nudges that pipeline from “story” toward “tangible near term catalyst,” alongside upcoming Phase 3 starts and late stage readouts the market is watching closely. With solid revenue and earnings, active buybacks, and analyst targets only modestly above the current share price, expectations were already tempered, so the stock’s recent pullback suggests investors are weighing trial and regulatory risk more than financial strain. The zanzalintinib filing fits directly into the biggest question now: can Exelixis credibly soften future generic pressure on Cabometyx with new approvals in time?

However, one key clinical and patent risk could change that picture quickly for shareholders. Despite retreating, Exelixis' shares might still be trading above their fair value and there could be some more downside. Discover how much.

Exploring Other Perspectives

Twelve Simply Wall St Community fair value estimates span from the mid US$30s to a very large upper bound, reflecting very different views on Exelixis’ upside. When you set those alongside the growing importance of zanzalintinib as a potential offset to Cabometyx generic pressure, it underlines why many market participants are watching upcoming trial outcomes so closely.

Explore 12 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 this assessment? Create your own narrative 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 4 key rewards and 1 important warning sign 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.