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On Wednesday, Guggenheim reaffirmed its positive stance on Exelixis Inc . (NASDAQ:EXEL), maintaining a Buy rating and a $42.00 price target for the company's shares. The endorsement follows a recent investor dinner with Exelixis' CFO Chris Senner and SVP of Strategy Andrew Peters, where they discussed several aspects of the company's operations and expectations. According to InvestingPro data, the company demonstrates exceptional financial health with a perfect Piotroski Score of 9 and is currently trading below its Fair Value, aligning with analyst optimism. The stock has shown strong momentum with a 43.89% return over the past year.
During the dinner, Exelixis' management team shared insights on the company's Cabometyx commercial franchise, highlighting its strong positioning for a successful launch in previously treated neuroendocrine tumors (NETs). They view this market as having a $1 billion total addressable market in the U.S. and anticipate updating their FY25 guidance once they have a clearer understanding of market dynamics. The company's strong commercial execution is reflected in its impressive 96.49% gross profit margin and 18.49% revenue growth over the last twelve months. For deeper insights into Exelixis's growth potential and comprehensive financial analysis, investors can access detailed research through InvestingPro.
Furthermore, the Exelixis management expressed confidence in the STELLAR-303 study design and its primary endpoint for zanzalintinib in metastatic colorectal cancer (mCRC), with top-line data expected in the second half of 2025. They also noted the potential for the STELLAR-304 study to change practices for first-line treatment of non-clear cell renal cell carcinoma (nccRCC). The company's solid financial position, with more cash than debt and a strong 3.63 current ratio, provides ample support for these clinical developments.
The company is also preparing for a pivotal decision regarding the STELLAR-305 study, which investigates a treatment for first-line PD-L1 positive squamous cell carcinoma of the head and neck (SCCHN). A go/no-go decision based on a blinded Data Safety Monitoring Board (DSMB) analysis is expected by the end of 2025.
In addition to these developments, Exelixis remains committed to seeking business development opportunities for mid-clinical stage assets in solid tumor oncology. Management also addressed concerns regarding the impact of tariffs, stating that they foresee no material effect from current or potential future tariffs on their operations, as the cost of goods sold (COGS) for Cabometyx remains under 1%, even with the use of some ingredients sourced from outside the U.S.
In other recent news, Exelixis, Inc. has received approval from the U.S. Food and Drug Administration (FDA) for CABOMETYX® (cabozantinib) to treat certain advanced neuroendocrine tumors (NET), marking a significant milestone for the company. The FDA's decision was based on the results of the Phase 3 CABINET trial, which demonstrated a notable improvement in progression-free survival for patients with pancreatic and extra-pancreatic NETs. This approval was granted ahead of the anticipated Prescription Drug User Fee Act (PDUFA) date and is seen as a positive development by several analyst firms. H.C. Wainwright reaffirmed a Buy rating with a $40.00 price target, while Citi maintained a Buy rating with a $45.00 target, both citing the FDA approval as a key factor. Stifel, on the other hand, reiterated a Hold rating with a $36.00 target, emphasizing the expanded indication's potential impact on future sales. Leerink Partners adjusted their price target slightly to $33.00, maintaining a Market Perform rating, and highlighted the ongoing discussions about the market opportunity size for NET treatments. The approval is expected to provide a new treatment option for patients with advanced NETs, a group with few targeted therapy options. Exelixis plans to further advance its cancer treatment pipeline with the initiation of the STELLAR-311 pivotal trial in the first half of 2025.
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