9 Most Profitable Biotech Stocks to Buy

4. Exelixis, Inc. (NASDAQ:EXEL)

TTM Net Income: $602.3 million

Number of Hedge Fund Holders: 43

Exelixis, Inc. (NASDAQ:EXEL) is one of the most profitable biotech stocks to buy. On October 21, Exelixis, Inc. (NASDAQ:EXEL) got upgraded to Outperform from Market Perform by Leerink Partners. The firm also raised its price target on the stock to $48 from $38.

The rating update came after the ESMO presentation of the Phase 3 STELLAR-303 trial that evaluated zanzalintinib plus atezolizumab versus regorafenib in 3L non MSI-high metastatic colorectal cancer.

The firm told investors that while Exelixis, Inc. (NASDAQ:EXEL) stock was down 12% and pressured on the data, it believes that the trial established several significant levers crucial to its longer-term investment thesis.

It added that STELLAR-303 established the approvability of zanzalintinib in this setting, paving the way for the next generation TKI to offset cabo revenues after patent expiry in 2028.

Exelixis, Inc. (NASDAQ:EXEL) discovers, develops, and commercializes new medicines for difficult-to-treat cancers. Its product portfolio includes cabometyx, cometriq, and cotellic.