Finding quality biotech stocks trading at $50 or less can be challenging, often forcing investors to choose between high-risk clinical-stage firms and expensive industry giants. Exelixis (NASDAQ: EXEL), however, presents an attractive blend of value and growth, with its stock currently priced below $39 and a commanding position in a specific oncology market.
With a market capitalization of approximately $10.4 billion, Exelixis is notably smaller than biotech behemoths but has successfully carved out a profitable niche in the competitive cancer drug landscape. The company’s flagship product, Cabometyx, a tyrosine kinase inhibitor (TKI), works by targeting and inhibiting cancer cell growth. It is approved for treating renal cell carcinoma (RCC) and has established itself as the long-standing leader in US prescription volume within its class.
Unlike many biotech companies still in the R&D phase, Exelixis is already profitable, supported by a commercialized product with expanding indications. Although its Q2 2025 total revenue declined 10.8% year-over-year—primarily due to a one-time milestone payment in the prior-year period—the core growth engine remained strong. Cabometyx net sales jumped 18.8% to $520 million, demonstrating robust underlying demand.
Cabometyx is poised to continue driving Exelixis’s growth. The company has successfully defended its intellectual property, delaying generic competition until early 2030 and securing valuable years of market exclusivity. Furthermore, ongoing clinical trials could potentially expand the drug’s approved label.
Simultaneously, Exelixis is actively building its post-Cabometyx portfolio. The lead pipeline candidate, zanzalintinib, has shown significant survival benefits in a Phase 3 study for metastatic colorectal cancer (CRC) when used in combination with Roche’s Tecentriq. This addresses a critical unmet medical need, as metastatic CRC has a very low five-year survival rate and is a leading cause of global cancer mortality. Zanzalintinib is also being investigated across several other cancer types, with other early-stage projects advancing in parallel.
Exelixis offers a de-risked profile compared to pre-revenue biotechs, generating steady income and profits from its established Cabometyx franchise. This financial stability is complemented by a rich R&D pipeline that provides multiple catalysts for long-term growth. For investors seeking exposure to the biotech sector with a single-stock cost under $50, Exelixis represents a noteworthy and high-quality candidate.
