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Cabometyx Sales Miss Mark in Q2: What Does This Mean for EXEL Stock?
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Key Takeaways
Cabometyx leads in RCC, aided by Opdivo combo and new NET indication, with Q2 RX volume up 18%.
Cabometyx Q2 sales rose year over year but missed estimates; EXEL depends heavily on this single drug.
RCC competition intensifies with Keytruda-Inlyta and Opdivo-Yervoy combos gaining traction.
Exelixis’ ((EXEL - Free Report) ) lead drug, Cabometyx, a tyrosine kinase inhibitor (TKI), maintains a dominant position for the treatment of renal cell carcinoma (RCC) in both the frontline immuno-oncology (IO) +TKI market and the second-line monotherapy segment.
Cabometyx is also approved for use in combination with Bristol Myers’ ((BMY - Free Report) ) Opdivo (nivolumab) in the first-line setting in RCC. Demand has been strong for this combination, boosting sales.
In March 2025, Exelixis obtained FDA approval for the label expansion of Cabometyx for the treatment of adult and pediatric patients 12 years of age and older with previously treated, unresectable, locally advanced or metastatic, well-differentiated pancreatic and extra-pancreatic neuroendocrine tumors (NET).
Demand for this new indication was just over 4% of the total demand for cabozantinib in the second quarter and EXEL expects the contribution to increase going forward.
Prescription volume for Cabometyx grew 18% year over year in the second quarter of 2025.
While Cabometyx sales were up year over year in the second quarter, the figure missed the consensus mark. Exelixis is heavily dependent on Cabometyx for growth and a slowdown in sales in any of the approved indications will adversely impact sales.
Competition for EXEL’s Cabometyx
The competitive landscape for RCC is evolving rapidly, given the entrance and increased adoption of immunotherapy-TKI combination therapies into the RCC treatment landscape, particularly in the first-line setting.
Cabometyx faces stiff competition in the RCC space from the combination of Merck’s ((MRK - Free Report) ) Keytruda (pembrolizumab) and Pfizer’s ((PFE - Free Report) ) Inlyta (axitinib) and the combination of BMY’s Yervoy (ipilimumab) and Opdivo.
In 2019, the FDA approved MRK’s Keytruda in combination with PFE’s Inlyta for the first-line treatment of patients with advanced RCC.
On a standalone basis, Keytruda is indicated for the adjuvant treatment of patients with RCC at intermediate-high or high risk of recurrence following nephrectomy, or following nephrectomy and resection of metastatic lesions.
Keytruda is currently approved for several types of cancer and alone accounts for around 50% of MRK’s pharmaceutical sales. Merck is currently working on different strategies to drive the long-term growth of Keytruda.
Pfizer’s Inlyta is also approved in combination with Bavencio (avelumab) for first-line treatment of patients with advanced renal cell carcinoma (RCC).
BMY’s Opdivo and Yervoy are also approved for several oncology indications.
EXEL’s Price Performance, Valuation & Estimates
Shares of the biotech company have gained 10.5% year to date compared with the industry’s growth of 0.2%.
Image Source: Zacks Investment Research
From a valuation standpoint, EXEL is expensive. Going by the price/sales ratio, its shares currently trade at 3.97x forward sales, higher than its mean of 3.64x and the biotech industry’s 1.59x.
Image Source: Zacks Investment Research
The bottom-line estimate for 2025 has risen from $2.64 to $2.68, while that for 2026 has decreased to $3.09 from $3.13 over the past 30 days.
Image: Bigstock
Cabometyx Sales Miss Mark in Q2: What Does This Mean for EXEL Stock?
Key Takeaways
Exelixis’ ((EXEL - Free Report) ) lead drug, Cabometyx, a tyrosine kinase inhibitor (TKI), maintains a dominant position for the treatment of renal cell carcinoma (RCC) in both the frontline immuno-oncology (IO) +TKI market and the second-line monotherapy segment.
Cabometyx is also approved for use in combination with Bristol Myers’ ((BMY - Free Report) ) Opdivo (nivolumab) in the first-line setting in RCC. Demand has been strong for this combination, boosting sales.
In March 2025, Exelixis obtained FDA approval for the label expansion of Cabometyx for the treatment of adult and pediatric patients 12 years of age and older with previously treated, unresectable, locally advanced or metastatic, well-differentiated pancreatic and extra-pancreatic neuroendocrine tumors (NET).
Demand for this new indication was just over 4% of the total demand for cabozantinib in the second quarter and EXEL expects the contribution to increase going forward.
Prescription volume for Cabometyx grew 18% year over year in the second quarter of 2025.
While Cabometyx sales were up year over year in the second quarter, the figure missed the consensus mark. Exelixis is heavily dependent on Cabometyx for growth and a slowdown in sales in any of the approved indications will adversely impact sales.
Competition for EXEL’s Cabometyx
The competitive landscape for RCC is evolving rapidly, given the entrance and increased adoption of immunotherapy-TKI combination therapies into the RCC treatment landscape, particularly in the first-line setting.
Cabometyx faces stiff competition in the RCC space from the combination of Merck’s ((MRK - Free Report) ) Keytruda (pembrolizumab) and Pfizer’s ((PFE - Free Report) ) Inlyta (axitinib) and the combination of BMY’s Yervoy (ipilimumab) and Opdivo.
In 2019, the FDA approved MRK’s Keytruda in combination with PFE’s Inlyta for the first-line treatment of patients with advanced RCC.
On a standalone basis, Keytruda is indicated for the adjuvant treatment of patients with RCC at intermediate-high or high risk of recurrence following nephrectomy, or following nephrectomy and resection of metastatic lesions.
Keytruda is currently approved for several types of cancer and alone accounts for around 50% of MRK’s pharmaceutical sales. Merck is currently working on different strategies to drive the long-term growth of Keytruda.
Pfizer’s Inlyta is also approved in combination with Bavencio (avelumab) for first-line treatment of patients with advanced renal cell carcinoma (RCC).
BMY’s Opdivo and Yervoy are also approved for several oncology indications.
EXEL’s Price Performance, Valuation & Estimates
Shares of the biotech company have gained 10.5% year to date compared with the industry’s growth of 0.2%.
Image Source: Zacks Investment Research
From a valuation standpoint, EXEL is expensive. Going by the price/sales ratio, its shares currently trade at 3.97x forward sales, higher than its mean of 3.64x and the biotech industry’s 1.59x.
Image Source: Zacks Investment Research
The bottom-line estimate for 2025 has risen from $2.64 to $2.68, while that for 2026 has decreased to $3.09 from $3.13 over the past 30 days.
Image Source: Zacks Investment Research
EXEL currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.