Exelixis, Inc. (NASDAQ: EXEL)
Exelixis is having an incredible day in the market today, and for good reason. The company announced data from a pivotal Phase 2 clinical trail, and the data was overwhelmingly positive. Today, we’ll talk about the trial results, how the market reacted to the news, and what we can expect to see from EXEL moving forward? So, let’s get right to it…
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EXEL Releases Strong Phase 2 Results
Exelixis has been working on a treatment, which they have decided to call cabozantinib, for some time now. The treatment is designed for untreated, advanced renal cell carcinoma, also known as RCC. According to the company, the Phase 2 trial, known as CABOSUN, reached its primary endpoint of demonstrating statistically significant and clinically meaningful improvement in progression-free survival when compared to sunitinib. On top of meeting this primary endpoint, EXEL also announced that safety data from the trial was consistent with those observed in previous studies. In a statement, Toni K. Choueiri, M.D., Clinical Director of the Lank Center for Genitourinary Oncology at the Dana-Farber Cancer Institute, and Chair of the CABOSUN study, had the following to offer:
“The positive outcome of CABOSUN is extremely exciting, as it marks the very first time that a therapy has shown a progression-free survival benefit over standard of care first-line treatment sunitinib for patients with previously untreated renal cell carcinoma… Based on these findings, cabozantinib may have the potential to become a new gold standard for previously untreated patients following their diagnosis with advanced kidney cancer.”
Following up on the above statement, Michael J. Morris, M.D., Medical Oncologist at Memorial Sloan Kettering Cancer Center, and Chair of the Alliance Genitourinary Committee, had the following to offer:
“All of us at the Alliance for Clinical Trials in Oncology are very gratified to have successfully demonstrated the potential of first-line cabozantinib to benefit patients with renal cell carcinoma in the CABOSUN study. This trial exemplifies how NCI-sponsored studies can be efficient, accrue rapidly, and yield results highly relevant to the field…”
How The Market Reacted To The News
As investors, we know that the news moves the market. Any time positive news is released with regard to publicly-traded company, we can expect to see gains in the value of the stock associated with the company. In this particular case, the news that was released was overwhelmingly positive. After all, cabozantinib has proven to be more effective than the current standard of care in RCC. As a result, we’re seeing strong gains in the value of EXEL today. Currently (10:38), the stock is trading at $6.02 per share after a gain of $0.45 per share, or 8.18%, thus far today.
What We Can Expect To See Moving Forward
Moving forward, I have an overwhelmingly bullish opinion of what we can expect to see from Exelixis. The reality is that, through cabozantinib, the company has created what will likely become the first-line treatment for consumers with Renal Cell Carcinoma, offering the strongest progression-free survival rates in the treatment of the condition. This, in the long run, will likely generate strong revenue and lead to exponential gains in the stock. All in all, I’m incredibly impressed with EXEL.
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What Do You Think?
Where do you think EXEL is headed and why? Join the discussion at the CNA Finance Forum!
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