Exelixis, Inc. (EXEL): A Bull Case Theory
We came across a bullish thesis on Exelixis, Inc. on Investing With Purpose’s. In this article, we will summarize the bulls’ thesis on EXEL. Exelixis, Inc.'s share was trading at $37.42 as of August 29th. EXEL’s trailing and forward P/E were 17.99 and 17.33 respectively according to Yahoo Finance.
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Exelixis (EXEL) is a rare oncology biotech that combines profitability with growth optionality, driven by its flagship CABOMETYX franchise. CABOMETYX, approved across kidney, liver, thyroid, and now neuroendocrine tumors (NET), serves as the company’s cash engine, funding extensive R&D while delivering high margins and free cash flow. Over the last twelve months, Exelixis reported $2.23 billion in revenue, $602 million in net income, and ~$754 million in free cash flow, supported by gross margins near 97% and operating margins of 31%. The balance sheet is exceptionally strong, with ~$610 million net cash, providing flexibility to advance its pipeline without dilution.
The next growth driver, zanzalintinib (XL092), has already demonstrated a pivotal overall survival win in metastatic colorectal cancer and is in late-stage trials across kidney and NET indications. Early-stage assets, including ADCs, a bispecific, and a USP1 inhibitor, provide long-dated optionality. CABOMETYX’s U.S. patent protection through 2031 ensures a clear bridge to the next-generation asset, while recent FDA and EU NET label approvals expand the market opportunity. Management has also returned nearly $800 million to shareholders via buybacks, reducing shares outstanding by ~13% in two years, signaling confidence in both the business and pipeline.
At ~$38/share, Exelixis trades at a premium to peers—14x EV/EBITDA, 4.6x EV/Sales, and a 6.9% free cash flow yield—but this is justified by its net cash position, robust margins, pivotal pipeline wins, and de-risked growth outlook. Technically, the stock is holding support in the high $30s, with a breakout above $40.5–41.5 likely to trigger further upside toward $42.7–49.5. Overall, Exelixis represents a compelling investment as a cash-generating biotech with a validated growth story, strong fundamentals, and a defined path to next-stage value creation.
Previously we covered a bullish thesis on Bio-Techne Corporation (TECH) by scuttleblurb in May 2025, which highlighted its diversified business in recombinant proteins, antibodies, assays, and instruments. The company's stock price has appreciated approximately by 13.97% since our coverage. Investing With Purpose shares a similar perspective but emphasizes Exelixis’ strong cash generation, profitable CABOMETYX franchise, and validated pipeline, highlighting a rare cash-compounding biotech.
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