Exelixis, Inc. (EXEL): History, Ownership, Mission, How It Works & Makes Money

Ever wondered how a genomics-based drug discovery company innovates in the complex world of cancer treatment? Exelixis, Inc. (EXEL), a company founded in 1994, has evolved into a multi-platform cancer company dedicated to scientific excellence and patient care. Fueled by the commercial success of CABOMETYX® (cabozantinib), Exelixis reported a revenue of US$ 1.435 Billion in 2021 and is committed to helping patients with cancer recover stronger and live longer, but how exactly does it work and make money?

Exelixis, Inc. (EXEL) History

Exelixis Founding Timeline

Year established

The company was founded in 1994.

Original location

The company was originally located in Cambridge, Massachusetts.

Founding team members

The founding team members included:

• Corey Goodman
• Spyros Artavanis-Tsakonas
• Pamela Bjorkman

Initial capital/funding

The initial funding for the company came from venture capital firms, including Kleiner Perkins Caufield & Byers, which invested $9 million in the Series A round.

Exelixis Evolution Milestones

Exelixis Transformative Moments

• Strategic Shift to Oncology: A pivotal decision to concentrate efforts on cancer therapies, leveraging its expertise in genetics and drug discovery to address unmet medical needs.
• Cabozantinib's Development: The successful development and commercialization of cabozantinib (COMETRIQ and CABOMETYX) transformed the company into a key player in oncology, driving revenue growth. In 2024, CABOMETYX generated approximately $1.4 billion in net product revenue.
• Partnerships and Collaborations: Forming strategic alliances with companies like Bayer and Bristol-Myers Squibb enhanced research capabilities and expanded market reach.

To learn more about the investors of the company, check out this link: Exploring Exelixis, Inc. (EXEL) Investor Profile: Who’s Buying and Why?

Exelixis, Inc. (EXEL) Ownership Structure

Exelixis, Inc. operates as a publicly traded company, meaning its ownership is distributed among public shareholders. Institutional investors typically hold a significant portion of the company's shares, influencing its strategic direction and corporate governance.

Exelixis, Inc.'s Current Status

Exelixis, Inc. is a publicly traded company, listed on the NASDAQ stock exchange under the ticker symbol EXEL. This allows individuals and institutions to buy and sell shares of the company, contributing to its capital base and market valuation.

Exelixis, Inc.'s Ownership Breakdown

As a publicly traded company, Exelixis's shares are held by a mix of institutional investors, mutual funds, and individual shareholders. The following table provides an overview of the ownership breakdown:

Exelixis, Inc.'s Leadership

The leadership team at Exelixis, Inc. is responsible for the strategic direction and operational management of the company. Key members of the leadership team include:

• Vicki L. Goodman, M.D., Executive Vice President, Product Development & Medical Affairs, and Chief Medical Officer
• Jeffrey Hessekiel, Executive Vice President and Chief Financial Officer
• Peter Lamb, Ph.D., Executive Vice President, Scientific Strategy and Chief Scientific Officer
• P.J. Haley, Executive Vice President, Commercial
• Thomas J. Knoll, J.D., Executive Vice President, General Counsel and Secretary

These individuals, along with other members of the executive team, guide Exelixis in its mission to develop and commercialize innovative medicines for cancer patients. To gain more insight into the company's investors, consider reading: Exploring Exelixis, Inc. (EXEL) Investor Profile: Who’s Buying and Why?

Exelixis, Inc. (EXEL) Mission and Values

Exelixis is dedicated to discovering, developing, and commercializing new medicines with the goal of improving care and outcomes for people with cancer. The company operates with a focus on innovation, scientific rigor, and a commitment to making a difference in the lives of patients.

Exelixis' Core Purpose

Official mission statement

Exelixis' mission statement is: 'To discover, develop and commercialize new medicines with the goal of improving care and outcomes for people with cancer.'

• Focuses on discovering, developing, and commercializing new medicines.
• Aims to improve care and outcomes for people with cancer.

Vision statement

Exelixis' vision is to transform the treatment of cancer and improve patients' lives. While a specific, formally declared vision statement is not explicitly available, this encapsulates their overarching goal.

• Aims to transform cancer treatment.
• Focuses on enhancing the quality of life for patients.

Company slogan/tagline

Exelixis does not have a widely publicized official slogan or tagline. However, their commitment to innovation and patient care is reflected in their work and communications.

For more in-depth information, visit: Mission Statement, Vision, & Core Values of Exelixis, Inc. (EXEL).

Exelixis, Inc. (EXEL) How It Works

Exelixis, Inc. is a genomics-based drug discovery company focused on developing and commercializing innovative therapies for cancer patients, striving to improve treatment effectiveness and patient outcomes.

Exelixis' Product/Service Portfolio

Exelixis' Operational Framework

Exelixis operates with a focus on:

• Research and Development: Exelixis invests heavily in R&D, with a significant portion of its operating expenses dedicated to discovering and developing new drug candidates. In 2023, R&D expenses reached $616.7 million, a 15.4% increase from the previous year.
• Targeted Therapies: The company develops therapies that target specific molecular pathways involved in cancer progression.
• Strategic Partnerships: Exelixis collaborates with pharmaceutical companies like Bristol Myers Squibb, Merck, Genentech, and Takeda Pharmaceutical to extend its reach and diversify its development portfolio.
• Patient-Centric Approach: Exelixis emphasizes a patient-centered approach in their product development, ensuring that therapies are designed with patient needs and preferences in mind.
• Quality Management System: The Exelixis Quality Management System (QMS) supports the development, clinical evaluation, and manufacturing of pharmaceutical products throughout the product lifecycle.

Exelixis Access Services (EASE) provides support to help patients commence therapy with Exelixis products, including a free trial program for eligible patients to access CABOMETYX while payer coverage is investigated.

Exelixis' Strategic Advantages

Exelixis maintains several strategic advantages in the oncology landscape:

• Strong Oncology Focus: Exelixis has a robust oncology research portfolio with multiple FDA-approved cancer therapies.
• Consistent Revenue Generation: The company demonstrates strong financial performance through key drug sales, particularly CABOMETYX. In 2024, Exelixis's revenue was $2.169 billion, an 18.49% increase from 2023.
• Experienced Management Team: Exelixis leadership brings extensive oncology drug development expertise.
• Innovation: Exelixis is committed to providing innovative cancer therapies, focusing on improving the effectiveness of treatment regimens for patients with a variety of cancers.
• Global Ambitions: Exelixis aims to scale its oncology innovation engine globally, strengthening its competitive advantage as a multi-platform cancer company.

Explore more about Exelixis and its investor profile: Exploring Exelixis, Inc. (EXEL) Investor Profile: Who’s Buying and Why?

Exelixis, Inc. (EXEL) How It Makes Money

Exelixis, Inc. primarily generates revenue through the discovery, development, and commercialization of novel therapies for cancer treatment.

Exelixis's Revenue Breakdown

As the most recent data is not available yet, the table below contains revenue information from the fiscal year 2023:

Exelixis's Business Economics

Exelixis operates with a focus on oncology, particularly in areas where there is a high unmet medical need. Key aspects of its business economics include:

• Drug Pricing and Reimbursement: Exelixis prices its drugs, such as CABOMETYX, based on the clinical value they provide, considering factors like efficacy, safety, and patient quality of life. Reimbursement is secured through negotiations with healthcare payers, including government agencies and private insurers.
• Research and Development Efficiency: A significant portion of Exelixis's expenses is allocated to R&D. Efficiently managing these costs while advancing promising drug candidates is crucial for maintaining profitability.
• Strategic Collaborations: Exelixis enters into strategic collaborations with other pharmaceutical companies to expand the reach of its products and share development costs. These collaborations often involve upfront payments, milestone payments, and royalties on future sales.
• Intellectual Property: Strong patent protection is vital for maintaining market exclusivity and preventing generic competition. Exelixis actively manages its intellectual property portfolio to maximize the lifespan of its products.

Exelixis's Financial Performance

Exelixis's financial performance can be evaluated through the following key metrics:

• Revenue Growth: Monitoring the year-over-year growth in product and collaboration revenue indicates the company's ability to expand its market presence and successfully commercialize its products. In 2023, Exelixis reported total revenues of $1.63 billion, a 13.1% increase compared to 2022.
• Gross Margin: The gross margin, which is revenue less the cost of goods sold, reflects the profitability of Exelixis's products. A high gross margin indicates efficient manufacturing and pricing strategies. The company's gross margin was approximately 95% in 2023.
• Operating Expenses: Analyzing operating expenses, including R&D and selling, general, and administrative (SG&A) expenses, helps assess the company's investment in future growth and its operational efficiency.
• Net Income/Loss: The bottom line, net income or loss, indicates the overall profitability of Exelixis. Factors such as revenue growth, gross margin, operating expenses, and interest income/expense all impact net income. Exelixis's net income for 2023 was $243.2 million, or $0.81 per share on a diluted basis.
• Cash Flow: Monitoring cash flow from operations, investing, and financing activities provides insights into the company's liquidity and financial stability. Strong cash flow generation enables Exelixis to invest in R&D, pursue acquisitions, and return capital to shareholders. As of December 31, 2023, the company had cash, cash equivalents, and investments of $1.3 billion.

To gain more insights into Exelixis, Inc. (EXEL), consider reading: Exploring Exelixis, Inc. (EXEL) Investor Profile: Who’s Buying and Why?

Exelixis, Inc. (EXEL) Market Position & Future Outlook

Exelixis, Inc. is a biopharmaceutical company focused on developing and commercializing innovative cancer treatments, holding a significant market presence in cancer therapeutics. Recent financial results show strong growth in revenues and earnings, driven primarily by its cabozantinib franchise, positioning the company well for continued success in 2025. For more information, explore Mission Statement, Vision, & Core Values of Exelixis, Inc. (EXEL).

Competitive Landscape

The biopharmaceutical industry is highly competitive, with many competitors having greater resources. Exelixis faces competition based on market acceptance of its products, and its ability to obtain and maintain coverage and reimbursement for these products. The table below summarizes the competitive landscape:

Opportunities & Challenges

Exelixis's ability to grow is heavily dependent on the commercial success of CABOMETYX in its approved and potential new indications. Market acceptance among physicians, patients, and healthcare payers is crucial.

Industry Position

Exelixis is a prominent player in the biotechnology sector, focusing on developing and commercializing innovative cancer treatments. Several factors contribute to Exelixis' standing in the industry:

• Strong Financial Performance: For fiscal year 2024, Exelixis reported total revenues of $2.17 billion, up from $1.83 billion in 2023. The cabozantinib franchise generated $1.81 billion in U.S. net product revenues.
• Strategic Initiatives: Exelixis is focused on expanding its pipeline with new molecules and advancing zanzalintinib through clinical trials.
• Shareholder Value: Exelixis is returning capital to shareholders through stock repurchase programs. As of December 31, 2024, approximately $294.4 million remained available for future stock repurchases.