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Investing.com - Truist Securities maintained its Buy rating and $49.00 price target on Exelixis (NASDAQ:EXEL), a biotechnology company showing strong financial health with a "GREAT" rating according to InvestingPro metrics, following the company’s STELLAR-303 trial results.
The STELLAR-303 study met statistical significance in its all-patient analysis, which Truist believes will secure U.S. regulatory approval for Zanza in colorectal cancer (CRC). The company’s robust financial position is reflected in its impressive 96.59% gross margin and 10.73% revenue growth over the last twelve months.
Despite the positive outcome, Truist does not expect the results to drive broad adoption of Zanza in the overall colorectal cancer population.
The firm remains focused on the nonliver metastasis (NLM) opportunity, which represents approximately 20-30% of colorectal cancer cases and will have data released later.
Truist expressed encouragement about the progression-free survival and overall survival data in the NLM population, which shows a more robust benefit for Zanza plus Atezo over Rego, potentially driving more meaningful uptake in this specific patient subgroup. The company maintains a strong liquidity position with a current ratio of 3.51, providing financial flexibility to support its ongoing clinical programs.
In other recent news, Exelixis announced significant findings from its cancer trials. The company’s experimental drug combination of zanzalintinib with atezolizumab showed a 20% reduction in the risk of death for patients with metastatic colorectal cancer compared to standard treatment, as presented at the European Society for Medical Oncology Congress. Another trial revealed that Exelixis’ CABOMETYX reduced the risk of disease progression or death by 81% in patients with advanced lung or thymic neuroendocrine tumors. Despite these promising results, UBS has lowered its price target for Exelixis to $35, citing concerns about the upcoming Phase 3 STELLAR data for the Zanza pipeline program. Meanwhile, Truist Securities has reiterated its Buy rating and maintained a $49 price target, refining its expectations for the upcoming STELLAR-303 clinical trial presentation. These developments highlight the mixed reactions from analysts regarding Exelixis’ potential in the oncology field.
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