Exelixis, Inc. (NASDAQ: EXEL)
Exelixis is having an incredible time in the market at the moment, and for a good reason. The company recently received overwhelmingly positive news from the FDA, exciting investors. Today, we’ll talk about the news that was received, how the market is reacting 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 Receives Positive News From The FDA
Yesterday, Exelixis announced that it had received overwhelmingly positive news from the United States Food and Drug Administration. According to the announcement, CABOMETYX tablets have been approved for the treatment of advanced renal cell carcinoma. In order to qualify for the treatment, patients must have received prior anti-angiogenic therapy. This is incredibly positive news for EXEL as renal cell carcinoma is the most common form of kidney cancer among adults. In a statement, Michael M. Morrissey, Ph.D., President and CEO of EXEL, had the following to offer:
“With today’s announcement, patients with previously treated advanced kidney cancer now have a new option, the first and only approved product demonstrated to help patients live longer while also delaying the progression of their cancer… We are proud to bring new hope to this community, who are looking for more therapies that can help extend lives. Exelixis is committed to making CABOMETYX available to patients in need within the next couple weeks.”
The above statement was followed up by Toni Choueiri, MD, Clinical Director of the Lank Center for Genitourinary Oncology at the Dana-Farber Cancer Institute. Here’s what Choueiri had to add:
“The efficacy profile demonstrated by CABOMETYX in the METEOR trial, now complemented by the overall survival benefit, is highly compelling… CABOMETYX is distinct from other approved treatment options, as it targets multiple tyrosine kinases involved in the development of RCC, including MET, AXL, and three VEGF receptors. At the same time, physicians are very familiar with this class of drug and how to use dose adjustments to balance safety and efficacy. The approval of CABOMETYX is wonderful news for physicians who are looking for a new option for their previously treated patients with advanced kidney cancer.”
How The Market Is Reacting To The News
As investors, one of the first things we learn is that the news moves the market. Any time positive news is released surrounding a publicly traded company, we can expect to see gains in the value of the stock associated with that company. Adversely, when negative news is released, we can expect to see declines. Naturally, following the overwhelmingly positive news with regard to EXEL, we have seen strong gains in the market. Those gains are continuing today. Currently (11:34), the stock is trading at $4.79 per share after a gain of $0.13 per share or 2.89% 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 CABOMETYX is a much needed treatment in the medical field at the moment. It is the first to demonstrate meaningful improvements in those suffering with severe kidney cancer that have previously been treated. Not to mention, because RCC is the most common form of kidney cancer in adults, it only makes sense that demand for this treatment will be incredibly high. All in all, things are looking great for EXEL at the moment.
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What Do You Think?
Where do you think EXEL is headed moving forward and why? Let us know your opinion in the comments below!
[Image Courtesy of Wikiwand]