Exelixis Inc (NASDAQ:EXEL) stock fell 0.82% (As on September 18, 11:24:01 AM UTC-4, Source: Google Finance) after Goldman Sachs initiated coverage on the company with a ‘Buy’ rating. The analyst, Paul Choi, has set a price target of $47.00 USD for the biopharmaceutical company, Exelixis citing its promising cancer treatment, zanzalintinib. This move signals confidence in Exelixis’s potential future performance. This innovative tyrosine kinase inhibitor is poised to offset the looming patent expiration of Cabometyx, Exelixis’s current kidney cancer drug. The company plans to bring zanzalintinib to market by early 2027.

Moreover, the tyrosine kinase inhibitor is currently in late-stage development for conditions such as colorectal cancer, non-clear cell renal cell carcinoma, and neuroendocrine tumors (NET). Exelixis’ (NASDAQ:EXEL) STELLAR-304 pivotal study for zanzalintinib in non-clear cell renal cell carcinoma is expected to generate topline data in H1 2026. “We highlight KOL enthusiasm for zanzalintinib’s potential in non-clear cell RCC (nccRCC), which we see as supporting better-than-expected uptake,” Choi wrote. As reasons, the analyst cited the extent of unmet medical need in nccRCC and the level of clinical differentiation zanzalintinib has shown so far in the broader nccRCC population against historical data from the trial’s comparator arm.

Additionally, while both the hepatocellular carcinoma and RCC markets are “fairly mature,” the analyst projects “incremental, albeit modest, share gains” for Cabometyx before the generic entry, thanks in part to strong early uptake in NET.

Meanwhile, total revenues for the quarter ended June 30, 2025 were $568.3 million, as compared to $637.2 million for the comparable period in 2024. Total revenues for the quarter ended June 30, 2025 included net product revenues of $520.0 million, as compared to $437.6 million for the comparable period in 2024. Collaboration revenues, composed of license revenues and collaboration services revenues, were $48.2 million for the quarter ended June 30, 2025, as compared to $199.6 million for the comparable period in 2024. The decrease in collaboration revenues was primarily related to a $150.0 million commercial milestone recognized during the second quarter of 2024 in connection with Ipsen achieving $600 million in cumulative net sales of cabozantinib in its related license territory over four consecutive quarters. Non-GAAP net income for the quarter ended June 30, 2025 was $212.6 million, or $0.78 per share, basic and $0.75 per share, diluted, as compared to non-GAAP net income of $245.6 million, or $0.85 per share, basic and $0.84 per share diluted, for the comparable period in 2024.

Further, Barclays has also initiated coverage of Exelixis with a Equal-Weight recommendation.