SVB Securities starts Exelixis with a Market Perform, $18 price target

As previously reported, SVB Securities initiated coverage of Exelixis with a Market Perform rating and $18 price target. The firm notes Cabozantinib is the only revenue generating asset for Exelixis. The composition of matter patent expiry in 2030 could allow for generic entry, which could significantly affect the top-line. Thus far, SVB does not see the pipeline, which include zanzalintinib and XB002, to be compelling enough for it to believe it can reliably replace and meaningfully grow Cabometyx’s potential lost revenues after genericization.