Exelixis, Inc. (EXEL) Halts Phase 3 STELLAR-305 Trial

We recently compiled a list of the 11 Cheap Biotech Stocks to Buy According to Hedge Funds. Exelixis, Inc. is one of them.

Exelixis, Inc. (NASDAQ:EXEL) is a biotechnology company focused on therapies for difficult-to-treat cancers, with its flagship product CABOMETYX (cabozantinib) driving growth in advanced renal cell carcinoma and medullary thyroid cancer. The company also maintains a promising oncology pipeline, including candidates such as zanzalintinib and XL309.

In Q2 2025, Exelixis, Inc. (NASDAQ:EXEL) reported revenues slightly below expectations for CABOMETYX, contributing to a modest stock decline. The corporation chose not to pursue the Phase 3 portion of the STELLAR-305 trial for squamous cell carcinoma, prioritizing more commercially promising opportunities.

Pipeline development remains a key focus, with ongoing Phase 1 studies for XL309, XB010, and XB628, and FDA clearance for an IND application for XB371. These efforts aim to diversify Exelixis, Inc. (NASDAQ:EXEL)’ portfolio beyond CABOMETYX. Collaborative partnerships, particularly with Bristol-Myers Squibb for combination therapies in renal cell carcinoma, continue to support market leadership and strategic growth.

While we acknowledge the potential of EXEL as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

READ NEXT: The Best and Worst Dow Stocks for the Next 12 Months and 10 Unstoppable Stocks That Could Double Your Money.

Disclosure: None.