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Investing.com - Truist Securities has reiterated its Buy rating and $49.00 price target on Exelixis (NASDAQ:EXEL), a biotech company with impressive 96.59% gross margins and strong financial health, as the European Society for Medical Oncology (ESMO) 2025 conference approaches. According to InvestingPro analysis, the company’s current valuation aligns with its Fair Value.
The firm is refining its expectations for the upcoming STELLAR-303 clinical trial data presentation at the conference, following its previous analysis of the study.
Truist Securities notes that the prescribing medical community will likely want to see numerically comparable data to newer treatment standards in colorectal cancer, specifically the Lonsurf plus Bevacizumab combination, before changing clinical practice for the broader patient population.
The firm observes that investor expectations remain divided ahead of the data release, with some investors focused specifically on Zanza’s potential success in a subgroup of colorectal cancer patients with non-liver metastases (NLM).
These NLM-focused investors may only require "good enough" data in the upcoming all-comer update at ESMO to maintain confidence in the NLM thesis until a dedicated NLM data readout becomes available.
In other recent news, Exelixis has experienced a series of significant developments that could impact its future trajectory. UBS has adjusted its price target for Exelixis to $35, citing concerns over the Phase 3 STELLAR data related to the Zanza pipeline program. Meanwhile, Barclays has initiated coverage on the company with an Equalweight rating and a $40 price target, anticipating mid-single-digit growth for cabozantinib until its patent expires in 2029. On a more optimistic note, Goldman Sachs has begun coverage with a Buy rating and a $47 price target, focusing on the potential of zanzalintinib to compensate for revenue loss when Cabometyx loses exclusivity. Additionally, Exelixis has announced leadership changes, appointing Dana T. Aftab, Ph.D., as Executive Vice President of Research and Development. The company also confirmed the departure of Amy C. Peterson, M.D., from her executive roles. In another analyst update, H.C. Wainwright lowered its price target to $46 following Exelixis’s decision not to proceed with the Phase 3 portion of the STELLAR-305 trial, affecting revenue projections for zanzalintinib in squamous cell carcinoma of the head and neck. These recent developments reflect a dynamic period for Exelixis, with various analyst firms offering differing perspectives on the company’s prospects.
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