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Investing.com - Truist Securities raised its price target on Exelixis (NASDAQ:EXEL) to $55.00 from $43.00 on Monday, while maintaining a Buy rating following positive clinical trial results for the company's cancer drug. The stock, currently trading at $44.41, has shown remarkable strength with an 82% return over the past year and maintains a "GREAT" financial health rating according to InvestingPro.
The price target increase comes after Exelixis announced positive topline results from its STELLAR-303 trial, marking the first pivotal clinical trial win for its drug Zanza in colorectal cancer treatment.
Truist Securities forecasts potential peak sales exceeding $1 billion in the third-line colorectal cancer setting, pending regulatory approval of the treatment regimen.
The investment firm noted that while detailed results are not yet available, they may be presented at an upcoming medical conference, potentially the European Society for Medical (TASE:BLWV) Oncology (ESMO).
According to Truist, this outcome provides proof of concept for Zanza in colorectal cancer, potentially enabling Exelixis to develop a broader strategy targeting larger, earlier-line patient populations.
In other recent news, Exelixis has reported significant developments regarding its cancer treatments. The company's experimental drug, zanzalintinib, demonstrated a statistically significant improvement in overall survival in a Phase 3 trial for metastatic colorectal cancer. This trial, known as STELLAR-303, has led analysts like Truist Securities to raise their price target for Exelixis, citing the potential for regulatory approval and substantial peak sales. Meanwhile, Citizens JMP also increased its price target, highlighting the drug's potential as a second product beyond cabozantinib. In Europe, Exelixis's partner Ipsen (EPA:IPN) received a positive opinion from the European Medicines Agency for CABOMETYX in certain neuroendocrine tumors, which may lead to approval in the coming months. H.C. Wainwright maintained its buy rating on Exelixis, reflecting optimism about the drug's prospects based on recent trial data. Additionally, BofA Securities adjusted its price target for Exelixis to $46, noting the significance of upcoming milestones for the zanza pipeline asset. These developments indicate a period of active progress and evaluation for Exelixis and its pipeline.
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