Analysts Weigh In on Exelixis' Approval Decision (Updated)

By Staff and Wire Reports

Monday, 26 November 2012 15:46

According to a published Bloomberg First Word survey, which sought the opinions of physicians and four analysts, the medullary thyroid cancer candidate Cabozantinib from Exelixis, Inc. (NASDAQ: EXEL) which faces an FDA PDUFA decision date on November 29th is likely to get approved.

Flash Player 9 or higher is required to view the chart
Click here to download Flash Player now

Formerly known as XL184, Cabozantinib, is said to work by blocking signaling that leads to cancer growth as well as blocking the growth of new blood vessels (angiogenesis) that help to feed a tumor. After approval, the drug could be used "off-label" to treat other cancers.

Analysts from four large firms who have been following the story list the odds for Cabozantinib's approval as follows:

Lazard at 75 percent to 85 percent
Piper Jaffray at 80 percent
Jefferies at 80 percent, and
Cowen at 70 percent

Published reports have Holtorf Medical Group's Dr. Kent Holtorf stating that the clinical data looked "very reassuring" and more promising for patients than any other alternatives. He notes that it will be exciting for physician's, which will now be able to offer something to patients upon approval.

While Piper Jaffray's Ed Tenthoff warns that investors might try to sell the news following the FDA decision this week, Lazard's Ryan Martins sees Exelixis at $6 to $7 upon approval, or $4 to $5 if rejected.

Exelixis shares traded mostly sideways during today's mixed market, but have seen a surge in recent weeks leading up to this decision.

Update: Lazard's biotechnology analyst is Ryan Martins

"Featured Content" profiles are meant to provide awareness of these companies to investors in the small-cap and growth equity community and should not in any way come across as a recommendation to buy, sell or hold these securities. BiomedReports is not paid or compensated by newswires to disseminate or report news and developments about publicly traded companies, but may from time to time receive compensation for advertising, data, analytics and investor relation services from various entities and firms. Full disclosures should be read in the 'About Us Section'.

Add this page to your favorite Social Bookmarking websites

blog comments powered by Disqus

Newsletter