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How much a stock's price changes over time is important for most investors, since price performance can both impact your investment portfolio and help you compare investment results across sectors and industries.
Another thing that can drive investing is the fear of missing out, or FOMO. This particularly applies to tech giants and popular consumer-facing stocks.
What if you'd invested in Exelixis (EXEL) ten years ago? It may not have been easy to hold on to EXEL for all that time, but if you did, how much would your investment be worth today?
Exelixis' Business In-Depth
With that in mind, let's take a look at Exelixis' main business drivers.
San Francisco, CA-based Exelixis, Inc. is an oncology-focused biotechnology company, which primarily focuses on the discovery, development and commercialization of new drugs for the treatment of difficult-to-treat cancers.
The company has four approved drugs in its portfolio. Of these, two are derived from cabozantinib, the company’s flagship molecule, which is an inhibitor of multiple tyrosine kinases, including MET, AXL, VEGF receptors and RET. The cabozantinib products are Cabometyx (cabozantinib) tablets approved for advanced renal cell carcinoma (RCC), both alone and in combination with Opdivo and previously treated hepatocellular carcinoma (HCC); Cometriq (cabozantinib) capsules approved for progressive, metastatic medullary thyroid cancer (MTC); Cotellic (cobimetinib), an inhibitor of MEK approved as part of a combination regimen to treat advanced melanoma, marketed under a collaboration with Genentech, Inc. (a member of the Roche Group) (Genentech); and Minnebro (esaxerenone), an oral, non-steroidal, selective blocker of the mineralocorticoid receptor (MR) approved for the treatment of hypertension in Japan and licensed to Daiichi Sankyo Company, Limited.
Exelixis has a licensing agreement with Ipsen, under which the latter has exclusive commercialization rights for current and potential future indications of cabozantinib outside the United States, Canada and Japan. The company also has granted Takeda the rights to develop and commercialize cabozantinib in Japan. The company also has collaborations with other leading pharmaceutical and biotechnology companies such as Bristol-Myers, Sanofi, for various compounds and programs in its portfolio.
The company earns revenues through milestones and royalty payments from these collaborations. Revenues in 2021 were $1,435.0 million compared with $987.5 million in 2020.
Putting together a successful investment portfolio takes a combination of research, patience, and a little bit of risk. For Exelixis, if you bought shares a decade ago, you're likely feeling really good about your investment today.
According to our calculations, a $1000 investment made in April 2012 would be worth $4,709.28, or a 370.93% gain, as of April 26, 2022. Investors should keep in mind that this return excludes dividends but includes price appreciation.
The S&P 500 rose 208.92% and the price of gold increased 9.95% over the same time frame in comparison.
Analysts are anticipating more upside for EXEL.
Exelixis’ approval of Cabometyx in combination with the immuno-oncology drug, Opdivo, for advanced renal cell carcinoma (RCC) has boosted sales. The drug is also approved for hepatocellular carcinoma (HCC). Exelixis has forged collaborations with Roche and Bristol Myers to further expand the drug’s label. These studies' successful outcomes should boost growth. Exelixis is also looking to build a differentiated next-generation pipeline in oncology through collaborations. The successful development of additional candidates will diversify its revenue base and reduce its dependence on Cabometyx. However, the company is heavily dependent on Cabometyx for growth. Competition is stiff in the RCC space. Shares have outperformed the industry in the past year.
The stock is up 5.01% over the past four weeks, and no earnings estimate has gone lower in the past two months, compared to 1 higher, for fiscal 2022. The consensus estimate has moved up as well.
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