- Earlier in May 2026, Exelixis announced a clinical development collaboration with Merck, under which Exelixis will sponsor the planned phase 3 STELLAR-316 trial testing its investigational kinase inhibitor zanzalintinib with and without Merck’s subcutaneous KEYTRUDA QLEX in resected stage II/III colorectal cancer patients who are molecular residual disease–positive after definitive therapy.
- The partnership, which also incorporates Natera’s Signatera assay to identify eligible MRD+ patients, positions Exelixis at the intersection of targeted therapy, immuno-oncology and personalized ctDNA-guided treatment in early-stage colorectal cancer, a segment of a very large global cancer market with persistent unmet need.
- Next, we’ll examine how this Merck collaboration around zanzalintinib and subcutaneous KEYTRUDA QLEX could reshape Exelixis’ investment narrative.
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Exelixis Investment Narrative Recap
To own Exelixis, you need to believe it can steadily reduce reliance on CABOMETYX and build a second, durable oncology franchise around zanzalintinib. The Merck collaboration for STELLAR-316 reinforces that diversification effort and may strengthen the most important near term catalyst, the FDA review of zanzalintinib plus atezolizumab in metastatic colorectal cancer, while pipeline execution risk and future CABOMETYX erosion remain the key concerns.
Among recent announcements, the February 2026 FDA acceptance of Exelixis’ New Drug Application for zanzalintinib plus atezolizumab in previously treated metastatic colorectal cancer stands out. That filing, with a PDUFA target action date of December 3, 2026, sits at the center of the company’s effort to create a new revenue pillar, and the new Merck-backed STELLAR-316 program now adds another late stage shot on goal in colorectal cancer built around the same asset.
Yet against this progress, investors should be aware that concerns around CABOMETYX concentration and rising discount pressure could still...
Read the full narrative on Exelixis (it's free!)
Exelixis’ narrative projects $3.3 billion revenue and $1.1 billion earnings by 2029.
Uncover how Exelixis' forecasts yield a $47.53 fair value, a 5% downside to its current price.
Exploring Other Perspectives
Some of the lowest ranked analysts were assuming revenue growth of only about 1.4 percent a year and earnings falling toward US$590.4 million by 2029, so compared with the pipeline potential behind STELLAR-316 and broader zanzalintinib data, their view is far more pessimistic and a reminder that your own assessment can differ sharply from theirs.
Explore 9 other fair value estimates on Exelixis - why the stock might be worth 29% less than the current price!
Decide For Yourself
Don't just follow the ticker - dig into the data and build a conviction that's truly your own.
- A great starting point for your Exelixis research is our analysis highlighting 4 key rewards and 1 important warning sign that could impact your investment decision.
- Our free Exelixis research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Exelixis' overall financial health at a glance.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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