IPSEY - Exelixis draws bullish view at Wells Fargo on cancer drug prospects

2023-03-09 09:05:52 ET

• Exelixis ( NASDAQ: EXEL ) shares ticked higher in the pre-market trading Thursday after Wells Fargo launched its coverage on the cancer drugmaker with an Overweight recommendation and a $23 per share target citing the sales potential of its lead revenue generator Cabometyx.
• Wells Fargo sees near-term growth potential in the bladder cancer therapy, for which Exelixis ( EXEL ) has partnered with Ipsen ( OTCPK:IPSEY ) ( OTCPK:IPSEF ) and Takeda ( TAK ) for global sales.
• Arguing that the upcoming clarity on Cabometyx’s loss of market exclusivity “will serve as a catalyst” for Exelixis ( EXEL ) shares, the firm expects additional value thanks to the company’s “significant” cash balance and its drug pipeline.
• Despite a Buy rating on the stock, Seeking Alpha contributor Out of Ignorance warned in January that Cabometyx-linked patent issues “will be riling Exelixis and its shareholders at some point between 2026 and 2030.”

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