Paradis Paul, director & president at Sezzle, sells $472k in shares
On Wednesday, Exelixis, Inc. (NASDAQ:EXEL), a pharmaceutical company with an impressive 96.49% gross profit margin and perfect Piotroski Score of 9 according to InvestingPro, received a reaffirmation of a Buy rating and a $45.00 price target from Citi. The endorsement follows the U.S. Food and Drug Administration’s (FDA) approval of cabozantinib, marketed as Cabometyx, for the treatment of certain types of neuroendocrine tumors (NET).
Cabometyx has now achieved its sixth FDA approval in the United States, this time for unresectable, locally advanced or metastatic pancreatic neuroendocrine tumors (pNET) and extra-pancreatic NET (epNET) in patients aged 12 and above. The FDA’s decision was influenced by the results of the phase 3 CABINET trial, which demonstrated a median progression-free survival (PFS) benefit of 9.4 months for pNET and 4.5 months for epNET over placebo.
The approval journey for Cabometyx was not straightforward, involving an FDA Advisory Committee meeting that was initially scheduled but subsequently canceled. The regulatory path ultimately led to this positive outcome for Exelixis.
Citi noted the approval as a definite positive for Exelixis stock. However, there is an ongoing debate regarding the market opportunity size for NET treatments. Despite this uncertainty, there is a significant unmet medical need within this therapeutic area, indicating potential for Exelixis to capitalize on this new approval. With a "GREAT" financial health score and five analysts recently revising earnings upward, detailed analysis available on InvestingPro suggests the company is well-positioned to leverage this opportunity.
In other recent news, Exelixis, Inc. has received FDA approval for CABOMETYX® to treat certain advanced neuroendocrine tumors, marking a significant development for patients with few treatment options. The approval is based on the successful phase 3 CABINET trial, which demonstrated improved progression-free survival. In the realm of analyst updates, Stifel has raised its price target for Exelixis to $36 while maintaining a Hold rating, citing factors like the company’s share repurchase program and revised success estimates for zanzalintinib. JMP Securities continues to support Exelixis with a Market Outperform rating and a $41 price target, emphasizing the potential of zanzalintinib, especially in metastatic colorectal cancer. Stifel also maintained a $30 price target and Hold rating, noting incremental efficacy data for zanzalintinib from the STELLAR-001 trial. Exelixis is actively pursuing further clinical development with plans for the STELLAR-311 pivotal trial in 2025, focusing on zanzalintinib’s potential against everolimus. These developments collectively highlight Exelixis’s ongoing efforts in advancing cancer treatment options.
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