Exelixis EVP Jeffrey Hessekiel Sells Shares Valued at Over $659K

In a recent development, Jeffrey Hessekiel, who serves as the Executive Vice President and General Counsel of Exelixis, Inc., sold 25,000 shares of the company’s stock, earning over $659,000. The transaction took place on September 23, 2024, at an average price of $26.38 per share.

Hessekiel executed this sale under a Rule 10b5-1 trading plan that he established on February 29, 2024. This plan allows executives and insiders to arrange scheduled stock trades without the influence of any material non-public information. The sale prices were reported to range from $26.18 to $26.58, as noted in an SEC filing.

Despite this recent sale, Hessekiel continues to hold a significant stake in the company, with 605,325 shares of common stock and an additional 236,022 shares likely to be issued upon the vesting of restricted stock units (RSUs), which are equivalent to shares of Exelixis stock. Additionally, Hessekiel holds an indirect ownership of 999 shares through the Exelixis 401(k) Plan, based on the latest plan statement from September 22, 2024.

Exelixis, located in Alameda, California, operates in the biotechnology sector, focusing on discovering, developing, and commercializing new treatments for cancer.

The sales transaction has been disclosed in line with regulations that require transparency from company insiders to investors and the broader market.

In other news, Exelixis is at the center of several notable developments. UBS has recently started coverage on the company with a neutral rating, expressing concerns about potential intellectual property risks starting in 2026 and a slowdown in the growth of its cancer drug, Cabometyx. However, UBS also forecasts that Exelixis’s pipeline product, zanzalitinib, could generate sales of $450 million by 2028.

The company reported impressive second-quarter revenues of $637.2 million, primarily driven by cabozantinib, which contributed $437.6 million. Exelixis also recorded a diluted net income of $0.77 per share, outperforming previous estimates.

Furthermore, Exelixis is in the spotlight due to encouraging results from its Phase 3 CABINET trial, which showed significant improvements in progression-free survival for patients with advanced neuroendocrine tumors. In response, the FDA has accepted a supplemental New Drug Application for cabozantinib as a treatment for these tumors.

Several analyst firms, including Citi, BofA Securities, and Truist Securities, have reaffirmed their Buy ratings on Exelixis following the promising findings from the Phase 3 CONTACT-02 trial, which demonstrated improved progression-free survival for patients with metastatic castration-resistant prostate cancer.

Lastly, a ruling on a patent dispute concerning Cabometyx, which will have implications for the drug’s market exclusivity, is anticipated soon. This is a critical issue for the company’s future financial performance.

Exelixis continues to show financial strength and growth potential, underlined by its market capitalization of approximately $7.44 billion and a revenue growth rate of 17.48% over the past twelve months. The company’s proactive approach to share buybacks signals management’s confidence in its value and prospects.

Additionally, the company has a P/E ratio of 22.69, reflecting market valuation against its earnings. The adjusted P/E ratio, at 19.72, indicates a more favorable outlook considering near-term earnings growth potential, suggesting that Exelixis is trading at a comparatively low P/E ratio relative to its immediate growth prospects.

Currently, Exelixis’s stock is close to its 52-week high, achieving 93.64% of its peak and showcasing a strong return of 17.07% over the last three months—a testament to investor confidence and the company’s solid position in the market.