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 being sold at an average price of $26.38.
The sales were conducted under a Rule 10b5-1 trading plan, which Hessekiel had adopted earlier in the year on February 29, 2024. This plan allows company insiders to set up a predetermined schedule for buying or selling stocks at a time when they are not in possession of material non-public information. The sale prices ranged from $26.18 to $26.58, according to a footnote in the SEC filing.
Following the transaction, Hessekiel still owns a substantial number of shares in Exelixis. His holdings include 605,325 shares of common stock, with an additional 236,022 shares expected to be issued upon the vesting of restricted stock units (RSUs). These RSUs are economically equivalent to Exelixis common stock shares. Moreover, Hessekiel has an indirect ownership of 999 shares through the Exelixis 401(k) Plan, as per the recent plan statement dated September 22, 2024.
Exelixis, based in Alameda, California, is a company that operates in the biotechnology sector, focusing on the discovery, development, and commercialization of new medicines for the treatment of cancer.
The transactions have been publicly disclosed as per the requirements for company insiders, providing transparency to investors and the market.
In other recent news, Exelixis, a biotechnology firm, has been the focus of several noteworthy developments. UBS has initiated coverage on Exelixis with a neutral rating, citing concerns about potential intellectual property risks starting from 2026 and a deceleration in the growth of the company's cancer drug, Cabometyx. However, they also project that Exelixis's pipeline asset, zanzalitinib, could achieve sales of $450 million by 2028.
Exelixis has 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.
The firm has also been garnering attention due to its Phase 3 CABINET trial results, which showed significant improvement in progression-free survival (PFS) for patients with advanced neuroendocrine tumors (NET). The U.S. Food and Drug Administration (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, have maintained their Buy rating on Exelixis, following the presentation of results from the Phase 3 CONTACT-02 trial. The trial demonstrated a significant improvement 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 imminent. This is a crucial development for the company's financial outlook.
InvestingPro Insights
Exelixis, Inc. (NASDAQ:EXEL) continues to demonstrate financial resilience and growth potential, as evidenced by the latest data from InvestingPro. With a market capitalization of approximately $7.44 billion and a robust revenue growth of 17.48% over the last twelve months as of Q2 2024, the company is solidifying its presence in the biotechnology industry. The company's aggressive approach to share buybacks, as noted in an InvestingPro Tip, underscores management's confidence in the company's value and future prospects.
Another important metric for investors is the P/E ratio, which stands at 22.69. This figure indicates the market's valuation of the company relative to its earnings. In contrast, the adjusted P/E ratio for the last twelve months as of Q2 2024 is slightly lower at 19.72, suggesting a more favorable outlook when considering near-term earnings growth. This aligns with the InvestingPro Tip highlighting that Exelixis is trading at a low P/E ratio relative to its near-term earnings growth potential.
Moreover, Exelixis has been trading near its 52-week high, with a price that is 93.64% of the peak. This performance, coupled with a strong return of 17.07% over the last three months, reflects investor confidence and the company's robust market position. For those seeking more in-depth analysis, InvestingPro offers additional tips on Exelixis, including insights on cash reserves, debt, and shareholder yield. In total, there are 12 additional InvestingPro Tips available to help investors make informed decisions about their investments in Exelixis.
For further details and to explore all the InvestingPro Tips for Exelixis, visit: https://www.investing.com/pro/EXEL
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