Exelixis, Inc. (EXEL) Business Profile

What it does

Exelixis is an oncology company that discovers, develops and sells medicines for cancer. Founded in 1994, it is headquartered in South San Francisco. Its principal medicine is cabozantinib, a drug that blocks proteins involved in cancer growth. It is sold as CABOMETYX tablets and COMETRIQ capsules for different types of cancer.

In the United States, CABOMETYX is approved for advanced kidney cancer, including use alongside Bristol-Myers Squibb’s OPDIVO, and for certain previously treated liver, thyroid and neuroendocrine tumors. COMETRIQ is approved for progressive, metastatic medullary thyroid cancer. Physicians select these medicines for eligible patients, while Exelixis markets its cabozantinib products in the United States and works with partners overseas.

Two other marketed products came from Exelixis’ discovery work. COTELLIC is used in combination regimens for specific forms of advanced melanoma and is marketed through a collaboration with Genentech. MINNEBRO is a hypertension medicine licensed to Daiichi Sankyo in Japan.

Exelixis also develops new cancer medicines. Its lead candidate, zanzalintinib, is an oral drug being studied across several tumor types. The company’s earlier pipeline includes small molecules and antibody-drug conjugates, which link an antibody to a drug payload. Exelixis discovers candidates internally and also obtains assets through licensing, acquisitions and other partnerships.

How it makes money

Exelixis earns most of its revenue from cabozantinib. It sells CABOMETYX and COMETRIQ in the United States and receives royalties on sales made by its commercialization partners outside the country. The company also collects cash from collaboration milestones and cost reimbursements under certain development programs.

In 2025, Exelixis generated net product revenue from CABOMETYX and COMETRIQ and earned royalties on cabozantinib sales outside the United States.

The products address different cancer indications. CABOMETYX can be prescribed alone or, for advanced kidney cancer, in combination with OPDIVO. COMETRIQ is a capsule for progressive, metastatic medullary thyroid cancer. Continued prescriptions and refills can generate product sales, while partner sales can generate royalties; neither stream is a fixed subscription.

Outside the United States, Ipsen holds development and commercialization rights except in Japan, where Takeda holds them. Exelixis also has arrangements for medicines discovered through its research: Genentech markets COTELLIC under a collaboration, and Daiichi Sankyo licenses MINNEBRO in Japan. The company uses cash generated by product sales and collaborations to support operations and its drug-development programs.

The amounts Exelixis retains from product sales are affected by coverage, reimbursement, discounts and rebates. Government policy can also affect drug pricing: Exelixis qualified for a small biotech exception for its cabozantinib products through IPAY 2027 and reapplied for IPAY 2028. Collaboration cash flows can vary with the timing of milestones and reimbursements.

Customers and how it sells

Exelixis’ medicines reach patients through healthcare channels in which physicians prescribe treatments and government and private payers provide coverage and reimbursement. Its revenue is concentrated among a number of named customers and affiliates.

In FY2025, affiliates of Cencora accounted for 22.0% of Exelixis’ revenue, affiliates of McKesson accounted for 19.0% of revenue, affiliates of CVS Health accounted for 15.0% of revenue, and Accredo Health accounted for 12.0% of revenue. Affiliates of Optum Specialty Pharmacy accounted for 10.0%, and Ipsen Pharma SAS accounted for 7.00%.

Exelixis sells its cabozantinib products in the United States and uses a third-party logistics provider for shipping, storage and warehousing. Outside the United States, Ipsen is responsible for commercialization in territories other than Japan, while Takeda is responsible for Japan. Exelixis receives royalties on those partners’ cabozantinib sales.

CABOMETYX approvals include the United States, the European Economic Area, the United Kingdom and Japan, although approved uses vary by market. Ipsen has also received approvals for selected uses in markets including Canada, Brazil and Australia. Takeda’s Japanese approvals include CABOMETYX for specified kidney and liver cancers. These arrangements give Exelixis revenue from markets where its partners, rather than Exelixis itself, lead commercialization.

Suppliers and costs

Exelixis does not operate its own manufacturing or distribution facilities for its current products and candidates. Instead, it hires contract manufacturers to produce drug substances, finished medicines and materials used in its biotherapeutic programs. Raw materials come from suppliers in Asia, Europe and North America, and contract manufacturers also obtain components and other materials.

For CABOMETYX, Exelixis has agreements with additional contract manufacturers for tablets and cabozantinib drug substance. It maintains safety stocks of drug substance and products in multiple locations and uses a third-party logistics provider for its U.S. commercial supply. Its quality department periodically audits manufacturing and supply-chain partners.

Exelixis’ cash requirements include employee costs, collaboration and development payments, taxes, royalties on product sales, inventory, rent and contract manufacturing. Research and clinical development support both existing medicines and pipeline candidates, while in-licensing and other transactions can involve upfront, option or contingent payments. The company expects its primary operating cash requirements to increase in fiscal 2026 compared with fiscal 2025. It had 1,077 employees in FY2025.

Competitive position

Exelixis competes with other cancer treatments and combinations for physician prescriptions and payer coverage. The company describes the indications served by CABOMETYX as highly competitive, and says the later-line liver cancer market has become increasingly competitive. Even after a drug is approved, physicians may choose other products or combinations.

Exelixis also faces potential follow-on competition. MSN, Teva, Cipla, Biocon and Sun have submitted applications for proposed generic CABOMETYX tablets. Handa has submitted an application for cabozantinib capsules, and Azurity has submitted one for cabozantinib tablets. Approval and launch of these products could reduce Exelixis’ U.S. CABOMETYX revenue.

CABOMETYX has approved uses across several cancers and clinical data supporting those uses. Kidney cancer treatment guidelines include CABOMETYX with nivolumab as a preferred first-line option for clear-cell disease across risk groups. Our reading: those approvals, trial results and guideline recommendations support a meaningful clinical position, although they do not prevent physicians from choosing alternatives.

Patent and regulatory protections can delay applications or approvals for competing products, while generic applicants can rely on prior approval of a reference drug rather than repeat a full clinical program. Our reading: these protections provide a time-limited barrier rather than permanent insulation, particularly given the applications already submitted.

Growth opportunities

Exelixis is seeking to grow sales of cabozantinib in its approved uses while studying the drug in additional settings. It supports its own trials as well as externally sponsored studies, and its international partners conduct or help fund selected development work. The company reported year-over-year growth in net product revenue in 2025, driven by higher U.S. cabozantinib sales.

Zanzalintinib is the company’s lead pipeline candidate. Exelixis is studying it in colorectal cancer, kidney cancer, neuroendocrine tumors and meningioma, both alone and in combinations. In STELLAR-303, zanzalintinib plus atezolizumab improved overall survival against regorafenib in the overall trial population. The FDA accepted Exelixis’ application for the combination in previously treated metastatic colorectal cancer and assigned a target action date of December 3, 2026. Exelixis expects a final analysis for the trial’s separate endpoint in patients without liver metastases, depending on event rates.

The company is also developing earlier-stage candidates, including XL309, XB010, XB628 and XB371, and may add assets through research collaborations, licensing or acquisitions. These programs require clinical testing and, where applicable, regulatory approval before commercialization.

In neuroendocrine tumors, Exelixis says the CABOMETYX sales ramp has been more gradual as some patients take longer to move to subsequent therapy.

Structural risks

• Exelixis expects its ability to fund operations and growth to depend on continued CABOMETYX success in competitive indications. A decline in sales could affect the cash available for the rest of the business.
• Generic or other follow-on cabozantinib products could be approved and launched. Exelixis says their entry could significantly decrease U.S. CABOMETYX revenue.
• Drug coverage, reimbursement and pricing are subject to government and private-payer decisions. Additional discounts, rebates or other controls could affect the commercial return from its medicines.
• Clinical trials can produce negative or inconclusive results, reveal unacceptable safety issues or face regulatory holds and delays. Combination trials also depend on collaboration partners supplying medicines that meet quality requirements.
• Exelixis relies on third-party manufacturers and on Ipsen and Takeda for commercialization outside the United States. It cannot control the amount or timing of resources those partners devote to its products; manufacturing or partner failures could disrupt supply or commercialization.
• Expenses for discovery, clinical development, business development and commercialization could grow faster than revenue, negatively affecting profitability.

Bottom line

Our reading

Exelixis is a commercial oncology business whose cash generation rests chiefly on cabozantinib, with international partners extending its reach. Its pipeline offers ways to diversify, but new medicines must clear clinical and regulatory hurdles while the existing franchise faces potential follow-on competition. The balance between funding that development and sustaining CABOMETYX sales is central to the business.