Exelixis: Welireg Competition Tempers RCC Upside but Embedded Cabozantinib Franchise Supports Hold Rating

Sean Laaman, an analyst from Morgan Stanley, maintained the Hold rating on Exelixis. The associated price target remains the same with $49.00.

Sean Laaman has given his Hold rating due to a combination of factors related to Exelixis’s competitive outlook in renal cell carcinoma. The new Phase 3 data for Merck’s Welireg plus lenvatinib regimen show a meaningful progression‑free survival advantage over cabozantinib in the post‑PD‑1 setting, suggesting future market share pressure and limiting upside for Exelixis, even though overall survival data are not yet definitive.

At the same time, he views the risk as manageable rather than thesis‑destroying because cabozantinib remains deeply embedded in treatment practice across multiple lines and scenarios, supported by extensive physician experience. Front‑line RCC use is largely unaffected, and expanding indications outside RCC, such as neuroendocrine tumors, help diversify the revenue base, leading to a balanced risk‑reward profile consistent with a Hold stance.

In another report released yesterday, RBC Capital also maintained a Hold rating on the stock with a $43.00 price target.