2 High-Conviction Biotech Stocks for 2026: Axsome Therapeutics and Exelixis

The biotechnology sector remains a cornerstone of long-term value creation, driven by its ability to address unmet medical needs through clinical innovation. Two companies poised to redefine their therapeutic landscapes in 2026 are Axsome Therapeutics and Exelixis. Both firms combine robust revenue growth with late-stage pipeline momentum, offering investors a compelling case for exposure to transformative healthcare advancements.

Axsome Therapeutics: A Dual Engine of Revenue and Innovation

Axsome Therapeutics has demonstrated exceptional revenue growth, with total net product revenue reaching $171.0 million in Q3 2025, reflecting 63% year-over-year growth and 14% sequential growth according to Q3 2025 financial results. This performance is driven by its flagship product, AUVELITY, which generated $136.1 million in net sales during the same period, underscoring its rapid adoption in the treatment of major depressive disorder. The company's second product, SUNOSI, also achieved 35% year-over-year growth, while SYMBRAVO, a novel migraine treatment, began commercialization in June 2025 and reported $2.1 million in net sales in its first full quarter.

Beyond revenue, Axsome's pipeline is a testament to its commitment to innovation. The FOCUS Phase 3 trial of solriamfetol in adults with ADHD demonstrated statistically significant improvements, with the 150 mg dose achieving a 45% mean reduction in ADHD symptoms compared to placebo. These results, coupled with the drug's favorable safety profile, position solriamfetol as a potential blockbuster in a market underserved by current therapies. Additionally, the ENCORE Phase 3 trial of AXS-12 in narcolepsy showed a 77% reduction in cataplexy attacks, leading to an anticipated NDA submission in January 2026. Such milestones highlight Axsome's ability to translate clinical success into regulatory and commercial opportunities.

Exelixis: Expanding the Reach of Cabozantinib and Zanzalintinib

Exelixis, a leader in oncology innovation, has solidified its market position through the Cabozantinib franchise, which generated $513.3 million in U.S. net product revenues in Q1 2025. The recent FDA approval of cabozantinib for neuroendocrine tumors (NET) in March 2025 expands its application to a broader patient population, with subgroup analyses revealing an 81% reduction in disease progression or death for patients with advanced lung or thymic NET. This approval not only strengthens cabozantinib's role as a foundational therapy but also opens new revenue streams in a high-growth therapeutic area.

Exelixis's pipeline is equally promising. The STELLAR-303 trial of zanzalintinib in combination with atezolizumab for metastatic colorectal cancer demonstrated a 20% reduction in the risk of death in the intention-to-treat population. With plans to submit a new drug application (NDA) for zanzalintinib by year-end 2025, the company is positioning itself to capitalize on the growing demand for targeted therapies in oncology. Furthermore, the STELLAR-304 and STELLAR-305 trials in non-clear cell renal cell carcinoma and head and neck cancer, respectively, underscore Exelixis's strategic focus on diversifying its oncology portfolio.

Strategic Strengths and Long-Term Value Creation

Both Axsome and Exelixis exemplify the intersection of financial resilience and clinical innovation. Axsome's 63% YoY revenue growth and Exelixis's $555.4 million in Q1 2025 revenues according to Q1 2025 financial results reflect strong commercial execution. However, their true value lies in their ability to address unmet medical needs: Axsome's solriamfetol and AXS-12 target ADHD and narcolepsy, conditions with limited treatment options, while Exelixis's cabozantinib and zanzalintinib are advancing care in oncology, a sector with persistent unmet demand.

For investors, these companies represent more than short-term gains. Axsome's NDA submission for AXS-12 in early 2026 and Exelixis's zanzalintinib NDA by year-end 2025 according to company announcements are pivotal catalysts that could unlock significant shareholder value. Moreover, Axsome's exploration of solriamfetol in pediatric ADHD and Exelixis's expansion into neuroendocrine tumors highlight their long-term vision for therapeutic innovation.

Conclusion

In a healthcare landscape increasingly defined by precision medicine and targeted therapies, Axsome Therapeutics and Exelixis stand out for their ability to merge clinical excellence with financial strength. Axsome's focus on central nervous system (CNS) disorders and Exelixis's oncology leadership position them as high-conviction plays for 2026. For investors seeking exposure to biotech's next wave of breakthroughs, these two stocks offer a compelling blend of revenue growth, pipeline momentum, and the potential to transform patient outcomes.