Exelixis Executive Stock Sale
In a recent transaction, Jeffrey Hessekiel, the Executive Vice President and General Counsel of Exelixis, Inc. (NASDAQ:EXEL), sold 25,000 shares of company stock, netting over $659,000. The sale occurred on September 23, 2024, with the shares sold at an average price of $26.38.
The sales were conducted under a Rule 10b5-1 trading plan, which Hessekiel adopted earlier on February 29, 2024. This plan allows company insiders to set a predetermined schedule for trading stocks when they are not in possession of non-public information. Sale prices ranged from $26.18 to $26.58 as per the SEC filing.
Following the transaction, Hessekiel retains a substantial number of shares in Exelixis, including 605,325 shares of common stock and an additional 236,022 shares expected upon the vesting of restricted stock units (RSUs). He also indirectly owns 999 shares through the Exelixis 401(k) Plan, as noted in a recent plan statement dated September 22, 2024.
Exelixis, based in Alameda, California, operates in the biotechnology sector, focusing on discovering, developing, and commercializing new cancer treatment medicines.
The transactions have been publicly disclosed, ensuring transparency for investors and the market.
Recent Developments
In other news, Exelixis has been the focus of several noteworthy developments. UBS has initiated coverage with a neutral rating, citing potential intellectual property risks starting in 2026 and a tapering in the growth of cancer drug Cabometyx. However, UBS projects the pipeline asset, zanzalitinib, could reach sales of $450 million by 2028.
Exelixis reported robust second-quarter revenues of $637.2 million, largely driven by cabozantinib, which contributed $437.6 million. The company’s diluted net income of $0.77 per share notably surpassed earlier projections.
Attention has also been garnered from the Phase 3 CABINET trial results, which showed significant progression-free survival (PFS) improvements for advanced neuroendocrine tumors (NET). The FDA has accepted a supplemental New Drug Application (sNDA) for cabozantinib, a treatment for NET.
Several analyst firms, including Citi, BofA Securities, and Truist Securities, maintained their Buy ratings on Exelixis following the Phase 3 CONTACT-02 trial results, which showed significant improvements in PFS for patients with metastatic castration-resistant prostate cancer.
Lastly, a decision on a patent dispute over Cabometyx, which will determine the drug’s market exclusivity period, is forthcoming, marking a significant development for the company’s financial outlook.
InvestingPro Insights
Exelixis, Inc. (NASDAQ:EXEL) continues to showcase financial resilience and growth potential, as per InvestingPro data. With a market cap of about $7.44 billion and a revenue growth of 17.48% over the last twelve months as of Q2 2024, the company is solidifying its biotechnology industry position.
Investors might find the P/E ratio, currently at 22.69, important, indicating the market’s valuation relative to earnings. The adjusted P/E ratio stands lower at 19.72, suggesting a favorable outlook for near-term earnings growth.
Furthermore, Exelixis has been trading close to its 52-week high, with its price at 93.64% of the peak, and a strong 17.07% return over the last three months reflects investor confidence and the company’s strong market position. For deeper analysis, InvestingPro offers additional insights on cash reserves, debt, and shareholder yield.
For further details and to explore more InvestingPro insights for Exelixis, visit: InvestingPro Tips
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.
Comments (0)