Goldman Sachs Initiates Coverage of Exelixis with Buy Recommendation and $47 Target

Goldman Sachs initiates coverage of Exelixis with a Buy recommendation and $47 target, citing the potential of lead candidate zanzalintinib to offset an upcoming patent cliff for kidney cancer drug Cabometyx. Zanzalintinib is a potential successor to Cabometyx, which is expected to face patent expiration in 2024. Exelixis is a biopharmaceutical company with a focus on developing cancer treatments.

Goldman Sachs has launched its coverage of Exelixis (NASDAQ:EXEL) with a Buy recommendation and a $47 target price, citing the potential of the company's lead candidate, zanzalintinib, to offset an upcoming patent cliff for its kidney cancer drug, Cabometyx Exelixis earns new Buy at Goldman Sachs on lead candidate^[1]. The analyst, Paul Choi, highlighted that zanzalintinib is a potential successor to Cabometyx, which is expected to face patent expiration in 2024. Exelixis is a biopharmaceutical company focused on developing innovative cancer treatments.

Zanzalintinib is currently in late-stage development for conditions such as colorectal cancer, non-clear cell renal cell carcinoma (nccRCC), and neuroendocrine tumors (NET). The company's STELLAR-304 pivotal study for zanzalintinib in nccRCC is expected to generate topline data in the first half of 2026. Choi noted that the drug has shown strong clinical differentiation in the broader nccRCC population against historical data from the trial’s comparator arm, which supports better-than-expected uptake.

Choi also mentioned that the extent of unmet medical need in nccRCC and the level of clinical differentiation zanzalintinib has shown so far are significant factors in its favor. While both the hepatocellular carcinoma and RCC markets are fairly mature, the analyst projects incremental, albeit modest, share gains for Cabometyx before the generic entry, thanks in part to strong early uptake in NET.

Exelixis has been actively pursuing the acceleration of its pipeline, with a focus on zanzalintinib and other innovative treatments. The company's recent revenue increase of 19% is a testament to its continued growth, driven by new launches and pipeline acceleration .