Exelixis, Inc. (EXEL): Top Biotech Stock in 2024?

Exelixis, Inc. (EXEL) has been making waves in the biotech industry in 2024, with a total YTD return of 39.11%. The company's strong performance has sparked interest among investors, leading to the question: is Exelixis the best-performing biotech stock in 2024? To answer this, we'll delve into the key drivers behind EXEL's success and compare its performance with other biotech companies.

Exelixis' impressive YTD return can be attributed to several factors. Firstly, the company's product portfolio, particularly Cabometyx and Cometriq, has driven growth. Cabometyx, a drug for advanced renal cell carcinoma (RCC) and hepatocellular carcinoma (HCC), and Cometriq, another formulation of cabozantinib for different indications, have been key revenue generators. In Q3 2024, Exelixis reported strong financial results, with total revenues of $539.5 million, up from $471.9 million last year, primarily due to the cabozantinib franchise, which generated $478.1 million in net product revenues.

Strategic partnerships and collaborations have also played a significant role in Exelixis' success. In April 2023, the company entered an exclusive global license agreement with Insilico Medicine for the development and commercialization of ISM3091, a potentially best-in-class small molecule inhibitor of USP1. This collaboration brought a promising compound targeting BRCA-mutated tumors into Exelixis' pipeline. Additionally, in August 2023, Exelixis and Merck signed a clinical development collaboration to evaluate investigational zanzalintinib in combination with KEYTRUDA® (pembrolizumab) in head and neck cancer and in combination with WELIREG® (belzutifan) in renal cell carcinoma. These partnerships have expanded Exelixis' clinical-stage pipeline and strengthened its position in the biotech sector.

Regulatory approvals and clinical trial advancements have further impacted Exelixis' stock performance this year. The company reported a GAAP EPS of $0.40 and non-GAAP EPS of $0.47 in Q3 2024, both exceeding expectations. Exelixis raised its full-year revenue guidance from $2.15 billion to $2.20 billion, reflecting a 12% year-over-year increase in cabozantinib revenues. Key factors behind the growth included a favorable litigation outcome protecting intellectual property and expanding oncology collaborations, such as with Merck.



However, to determine if EXEL is the best-performing biotech stock, we must compare its performance with other biotech companies with a market cap of at least $10 billion. Amgen (AMGN) has a YTD return of 32.53%, driven by robust sales of its key drugs, such as Enbrel and Prolia. Meanwhile, Gilead Sciences (GILD) has a YTD return of 28.14%, boosted by its HIV portfolio and the launch of Biktarvy. While EXEL's performance is impressive, investors should also consider other top-performing biotech stocks like AMGN and GILD, which have their own unique growth drivers.

In conclusion, Exelixis, Inc. (EXEL) has shown remarkable performance in 2024, with a total YTD return of 39.11%. Key drivers behind this success include strong financial results, strategic partnerships, and regulatory approvals. However, investors should also consider other top-performing biotech stocks, such as Amgen and Gilead Sciences, to make informed investment decisions.