Exelixis ($EXEL) is overvalued at $59 with a $15B market cap on $2B revenue from its single cancer drug cabozantinib. Despite recent patent wins celebrated by the market, a Taiwanese company (Handa) received FDA approval for a generic cabozantinib in early September, which could significantly erode revenue and make the stock vulnerable to a major correction.

EXEL is a pharma company with 80%+ revenue concentration in cabozantinib (CABOMETYX), trading near ATH (~$59) on false optimism about patent protection until 2030. A critical risk is that the FDA already approved a generic cabozantinib from Taiwanese company Handa, which the market hasn't priced in, suggesting significant downside ahead.

EXEL is overvalued at $59 (15B market cap on $2B revenue) with heavy reliance on a single cancer drug (cabozantinib). Despite recent patent wins celebrated by the market, an FDA-approved generic from Taiwanese company Handa has already been approved, which will likely severely erode EXEL's revenue and justify a significant stock decline.