- Exelixis stock has been up and down on news of progress of Checkmate 9-ER trial evaluating lead candidate Cabometyx and Opdivo in RCC.
- The combo will likely win approval but this may not necessarily lead to blockbuster sales for the company.
- Meanwhile, current sales volumes are flat and costs are rising, although Exelixis has $1.4bn of near-term cash and little debt.
- The company are funding >50 trials evaluating Cabometyx in multiple indications - a tie-up with Roche's Tecentriq in Prostate and NSCLC looks interesting.
- Due to the short lives of even the best cancer treatment drugs and the intense competition I feel neutral on Exelixis at this time but am sticking to my price target of $32 - albeit with a higher downside risk than I originally thought.
For further details see:
Exelixis: Good News And Bad Plus Stubborn Stock Price Makes Investment Case Less Attractive