Exelixis’s Zanza Pipeline: Balancing Risks and Opportunities Ahead of Key 2025 Readouts

Bank of America Securities analyst Jason Gerberry has reiterated their neutral stance on EXEL stock, giving a Hold rating on June 3.

Jason Gerberry has given his Hold rating due to a combination of factors surrounding Exelixis’s zanza pipeline asset, particularly its upcoming readouts in the second half of 2025. The Phase 3 CRC readout is seen as crucial, with potential positive outcomes narrowing the gap between zanza’s projected peak sales and current levels. However, Gerberry remains cautious about the broader CRC population’s success, as recent changes to the statistical analysis plan do not provide a clear positive outlook. Without a significant win in the CRC ITT, the peak sales for zanza are expected to remain within the $500-1 billion range for the foreseeable future.
Moreover, while there is a niche opportunity in the non-liver metastasis group, it is limited by existing treatments, and the broader ITT cohort presents higher risks due to treatment challenges. In the RCC market, the clear-cell strategy is still developing and carries above-average risks. As a result, Gerberry maintains a neutral stance, balancing the risks and rewards ahead of the anticipated Phase 3 readouts in the latter half of 2025.

In another report released on June 3, Stifel Nicolaus also reiterated a Hold rating on the stock with a $38.00 price target.