Exelixis (EXEL) Morgan Stanley 24th Annual Global Healthcare Conference summary

Innovation and portfolio strategy

• China-originated biotech activity is expanding; diligence prioritizes novel assets over fast followers and me-too programs, with collaboration viewed as a preferred route to broaden franchises.

• Portfolio strategy centers on multiple products and franchises, building on cabozantinib with zanzalintinib and considering acquisitions, partnerships, collaborations, and ex-U.S. assets.

AI and policy environment

• AI deployment is controlled and prioritized around decades of curated discovery, development, and commercial data; investment emphasizes speed, quality, and security, with potential to strengthen commercial capabilities.

• Pricing and MFN are key policy concerns; planning considers near-term conditions through the 2026 midterms, the 2028 election and administration, and the early 2030s.

Cabozantinib franchise

• Q2 2026 global run rate exceeded $3B annually; cabozantinib has eight labeled indications and remains the platform for expanding the franchise and developing zanzalintinib.

• NET growth is running below expectations, extending the time to reach its potential; management said this does not change its view of the opportunity.

• Several generic settlements set an entry date of Jan. 1, 2031; litigation continues with other challengers, and management cited a supportive recent appellate decision.