Exelixis Investigated for Misleading Statements, Shares Fall 16.8%

• Exelixis being investigated by Schall Law Firm for securities violations. • Investigation focuses on false/misleading statements and/or undisclosed information. • Exelixis reported Q2 2025 financial results with product revenue below expectations. • Shares fell by 16.8% following announcement to discontinue phase 3 trial of STELLAR-305 study.

The Schall Law Firm, a prominent shareholder rights litigation firm, has announced an investigation into Exelixis, Inc. (NASDAQ: EXEL) on behalf of its investors. The investigation focuses on potential violations of securities laws, including false and/or misleading statements and/or the failure to disclose pertinent information [1].

The investigation stems from Exelixis' Q2 2025 financial results, which were released on July 28, 2025. The company reported product revenue for its flagship product, CABOMETYX (cabozantinib), below expectations. Additionally, Exelixis announced that it would not proceed with the phase 3 portion of the STELLAR-305 study in advanced squamous cell carcinoma of the head and neck, citing emerging competition and assessment of other commercial opportunities. This decision led to a significant stock decline, with shares falling by almost 16.8% the following day [1].

The Schall Law Firm encourages investors who believe they have suffered losses due to these potential securities violations to contact Brian Schall at 310-301-3335 or via email at bschall@schallfirm.com to discuss their rights [1].

Exelixis, a biotechnology company focused on therapies for difficult-to-treat cancers, has faced challenges in recent quarters. Its stock has been highlighted as one of the cheap biotech stocks to buy according to hedge funds, but the company's decision to halt the phase 3 trial of the STELLAR-305 study has raised concerns among investors [2].

Despite these challenges, Exelixis maintains a promising oncology pipeline with ongoing phase 1 studies and FDA clearance for an IND application for XB371. Collaborative partnerships, such as those with Bristol-Myers Squibb, continue to support the company's strategic growth and market leadership [2].

The investigation by the Schall Law Firm is a reminder to investors to stay vigilant and informed about potential securities violations. While Exelixis faces significant challenges, its ongoing pipeline development and strategic partnerships provide reasons for optimism.

References:
[1] https://www.marketscreener.com/news/exel-investors-have-opportunity-to-join-exelixis-inc-fraud-investigation-with-the-schall-law-firm-ce7d59d8da8cf525
[2] https://finance.yahoo.com/news/exelixis-inc-exel-halts-phase-085127677.html