Exelixis (EXEL): A Biopharma Bargain With Liftoff Potential

The biopharma sector is notoriously volatile, but Exelixis (NASDAQ:EXEL) is proving that steady execution and smart pipeline management can create a stock worth pouncing on. With Q1 2025 revenues soaring to $555.4 million—a 30% jump from the same period last year—this is a company that's not just surviving but thriving. Let's unpack why EXEL is a hidden gem in a sector full of risky bets.

The Numbers Don't Lie: Revenue Rocket Science

Exelixis' flagship drug CABOMETYX is the star here, driving $510.9 million in U.S. net product sales in Q1. Its recent FDA approval for advanced neuroendocrine tumors (NET) in late March 2025 adds a new growth leg, and the sales team has already hit the ground running. This isn't just a one-hit wonder: the drug's average selling price increased due to strategic pricing adjustments, and its global partnerships (like with Ipsen and Takeda) are fueling royalty streams.

But what really caught my eye is the EPS explosion. GAAP EPS jumped to $0.55, a 358% surge from $0.12 in Q1 2024. Non-GAAP EPS hit $0.62, up from $0.17. This isn't just about top-line growth—share buybacks are turbocharging per-share metrics. Since late 2023, Exelixis has slashed its shares outstanding by 12%, repurchasing $494.5 million of stock. That's smart capital allocation, folks.

Growth Catalysts: The Pipeline is Ignited

The real kicker is what's coming next. Exelixis isn't resting on CABOMETYX's laurels:
1. Zanzalintinib: The next-gen tyrosine kinase inhibitor is in pivotal trials for colorectal cancer and non-clear cell renal cell carcinoma. Early data hint at “clinically meaningful” responses. If approved by 2026, this could be a $1 billion+ drug.
2. New Indications: CABOMETYX's NET approval is just the start. The FDA could greenlight its use in hepatocellular carcinoma soon, expanding its addressable market.
3. Preclinical Stars: Candidates like XB628 (a novel RET inhibitor) and XB371 (targeting KRAS mutations) are advancing to trials. These aren't pipe dreams—they're the future of precision oncology.

Valuation: A Stock Trading at a Bargain Price

At a P/E ratio of 22.91, EXEL is cheap for a growth stock. Its market cap of $10.34 billion pales compared to its potential. Analysts are split—some see risks like patent challenges—but the consensus is a “Buy” with an average 12-month price target of $35.61. However, Truist and Oppenheimer see it hitting $42, a 16% upside from current levels.

The Bottom Line: Buy Now—Before the Crowd Catches On

Exelixis isn't a flash-in-the-pan story. It's a sustainable revenue machine with a pipeline that's firing on all cylinders. The $36 stock price isn't pricing in CABOMETYX's new indications or zanzalintinib's potential.

Action to take: Buy EXEL now, and set a price target of $40+ by year-end. This is a stock that's primed to outperform in a market hungry for real growth. Don't let this one slip away—Exelixis is the biotech bargain of 2025.

Disclosure: This is not financial advice. Always do your own research.