4. Exelixis, Inc. (NASDAQ:EXEL)
Number of Hedge Fund Investors in Q2 2024: 32
Farallon Capital’s Q2 2024 Investment Stake: $608 million
Exelixis, Inc. (NASDAQ:EXEL) develops treatments for cancer and hypertension. Some of its products target kidney, thyroid, and skin cancer. It is another commercial stage biotechnology stock, which provides it with a lot of stability compared to other firms that are in clinical trial stages. Exelixis, Inc. (NASDAQ:EXEL)’s bread and butter drug is cabozantinib, which is a diversified cancer drug that targets thyroid, kidney, and liver cancer. Exelixis, Inc. (NASDAQ:EXEL) is also a profitable biotechnology firm as it generates positive earnings per share (Q2 adjusted EPS was $0.77 which more than doubled analyst estimates of $0.34). Cabozantinib, sold as Cabometyx, showed positive impacts on patients suffering from neuroendocrine cancer in October last year, and if the drug is approved for this ailment by the FDA, then Exelixis, Inc. (NASDAQ:EXEL)’s shares could see more fireworks. The stock is up 9.95% year to date, making it a rare biotechnology firm that has done well in a tough economy, and the shares gained 15.86% in August after Exelixis, Inc. (NASDAQ:EXEL)’s Q2 2024 earnings report.
During the call, management shared key details for cabozantinib’s expansion to include neuroendocrine tumors. Here’s what they said:
“I’m happy to share our progress across our pipeline with you all today, starting with Cabozantinib and an exciting status update on our filing activities with the Phase III CABINET study in neuroendocrine tumors, or NET. As Mike mentioned, we are pleased to report that Exelixis’ filing for a supplementary NDA for Cabozantinib in pancreatic or extrapancreatic neuroendocrine tumors has been accepted by the FDA with a target PDUFA date of April 3, 2025. The FDA also granted orphan drug designation to Cabozantinib in pancreatic NET. As a reminder, the Phase III CABINET study evaluated Cabozantinib 60 milligrams daily versus placebo in patients with previously treated advanced or metastatic pancreatic or extrapancreatic neuroendocrine tumors, which I will refer to as pNET or epNET, respectively.
By way of background, NET sometimes referred to as carcinoid tumors are a diverse group of malignancies that arise from neuroendocrine cells of various organs. While previously thought to be fairly uncommon, there has been a marked increase in the incidents over the past 20-years. And in 2024, approximately 15,000 people in the U.S. will be diagnosed with this tumor type. Well-differentiated neuroendocrine tumors develop most commonly about 55% of the time in the GI tract, followed by lung at approximately 25% and the pancreas just under 10%. They may also arise from other tissues like prostate, breast, thymus and skin. To-date, FDA-approved therapies have been directed at stimulating somatostatin receptors and inhibiting angiogenesis. Somatostatin analogs were first approved for the treatment of symptoms related to functional tumors and subsequently to delay disease progression.”
